How to increase your income 60 times in next 6 years!

lot-of-money

Doesn’t matter how much money it is, it’s a lot-of-money!

Please note that it is not easy.

Will take some work and some changes in how you spend your time.

Some risk taking, not like jumping off a cliff, but some.

If you are curious about how to do it but are hard pressed for time – here is the info in brief. It takes the age old – POWER OF COMPOUNDING and applying it to your earnings. You also need to negotiate, communicate well, let go when things do not work out, “dig your well before you are thirsty”, take help, take care of yourself and HAVE FUN.

Yes you read it right having fun is at the core of it. And you CAN AND SHOULD have fun while you work and make money.

It does not need you to be an entrepreneur, you can be in a job and get started but somewhere along the path you may need to switch gears more on that below.

If you are the kind of person who is fine with these things read on. And most important – YOU SHOULD BE WILLING TO MAKE MORE MONEY. READY… GO NOW.

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I had just lost my wallet.

I was in Hyderabad for work.

Went to my bank there and requested the branch manager and his colleague to help me get a cheque book.

They were generous and helped me get it.

While it was being done, we struck a conversation and started talking about work, dreams, and life.

At one point discussion drifted to making more money.

I thought I had some insights to share about making a lot of money in comparatively smaller time frame and doing it without selling your soul.

I penned my ideas in brief and emailed it to my banker friends.

While writing that email I realized that email did not tell it all.

So I sat down to elaborate it further and share how you can increase your income 60 times in 6 years.

For the naysayers – i will only say – to each its own.

For those who believe in hard work and taking big leap of faith, GOOD LUCK.

Once you believe that it can be done, you make a start.

Let us get into details.

First look and you may find it too much to tackle.

Break it and you will find it believable and workable.

At the core is power of compounding.

If you double your income every year for 6 years, you will earn 64 times of what you made last year (at the end of 6th year).

Timeline  Times (x) your current earning
Now (for previous year) 1
At the end of 1st year 2
At the end of 2nd year 4
At the end of 3rd year 8
At the end of 4th year 16
At the end of 5th year 32
At the end of 6th year 64

If you made 25,000 USD during past year, you can grow it to 1.6 million in 6 year. (An Indian reader can look at making around 8 crores in 6 years if she made 12 lakhs during past year.)

If you are struggling to reach a basic earning level then you can skip reading this. I will share how to make your first 1000 USD in a job or small business.

Points to be noted before you dig deep.

You will have to work for this.

– Your mileage may vary – you may get to 10 times your current earnings and also 100 times. Depends on how religiously you follow it.

– It is rare that you can do it in a job.  So be ready to get into garb of an entrepreneur. Quarter of a million in a job workable. 1 million plus in a job – possible but tough. (You may in a job right now but

– I will not talk about tricks but basics.

1. Negotiate

With your boss.

Best way to negotiate is to make a list of the good work that you have done for the company you work for. Share with your boss (person responsible for raise) on a monthly. Ask if she would like you to do anything else.

(Word of caution: Funny but true. Remember if you offer your ass, you will be screwed. So think about what you offer. Promise less, deliver more always.)

If you are in a job, talk to your boss and tell her that why your salary should be raised.

Before you do prepare well.

Make a list of all good things that you have done in the past.

Show how much direct revenue your work has brought to the company.

Show if your work has created a competitive advantage for your company.

Make an attempt to help your boss shine; because when you do that your boss will grow and when she grows. You will automatically grow if you have spent time on nurturing the relationship.

For negotiations there are tons of books out there. You need to buy (think of it as investment on yourself) and read. Look up on Amazon in negotiations category and buy top 3 books.

If you run a business, then up-sell your clients for a bigger purchase.

It becomes easier if you have helped their business grow with whatever you do.

Share new things with them and tell them ways to increase their revenues.

2. Learn to communicate well.

It starts with listening.

Whenever you sit in a client meeting – listen well enough to understand the inputs. Ask questions before you leave the meeting so that you have everything you know.

Also learn to speak and write well.

Same sentence shared in a fumbled voice will have less impact than when said with poise and confidence.

Write down your thoughts. This will help you improve your writing skills.

Keep working at it.

Same goes when you are sitting with your boss.

Understand what your boss tells you. Take notes and ask during the discussion if you missed something.

If your boss or client is a lousy communicator – insist on getting inputs in written form (via email).

This will help safeguard and make sure that you deliver on what is expected of you and some more.

When you do more than what is expected of you and create wow experiences for people who work with you, you create an aura that helps you grow and earn more.

3. Leave if it is not working.

It is important to know when to quit.

When you hit a dead end it is important to turn back and find another way.

If you are in a job and your target earning for next year is USD 100,000 and the total earning of your CEO is USD 100,000 there is no way you are going to earn more than that in short term.

In such a case, join a company where the CEO makes 1 million. You will have a good shot at making USD 100,000 there.

If you have a hard time finding the salary of CEO then talk to employees at your level of work and ask them how much you make. If you are lazy – then head to Glassdoor.com and check out the average salaries in an industry. And stop being lazy 😉

I have talked about it earlier. Fire clients – who are a drag on your energy and time.

Work with people you enjoy.

Be courageous (and commonsensical).

4. Go hunting for new opportunities when times are good.

During old times hunters used to hunt when the weather was good. And save the kill for times when weather used to be rough.

If you do the same about work and life you will be.

Work out when you are still fit.

Look for opportunities when you still have one in hand.

Do not get settled in your cushy job or the safety net of your lifestyle business (if you want to earn more money). If you are ok with what you earn now then you should not be reading this post.

Do not eat when you are full.

But if you are in business scout for more clients when you already have many. Your confidence is high in such situations and you are on a roll. It is easy to signup new ones in such a situation.

Interview for a new job when you are already have one.

Do not wait for somebody to fire you or bad industry conditions to look out for a job. (Dig your well before you get thirsty. – Harvey MacKay)

5. Go where there is light.

If you want to grow, work in an industry which is on a growth path. In such a scenario you will always have an opportunity to grow and move.

Once you are a bit settled, get in pursuit of something that less people are working on right now.

My friend James Altucher used to charge more than ten thousand dollars for a 15 page website back when having a website was a novelty.

When you are early mover in an industry, you can charge a premium. (Not all early movers succeed but those who do make big gains. So it is a risk worth taking.)

6. Dream big but be reasonable.

It is ok to dream to make a million dollars, even if you make almost nothing right now.

Create a plan and get ready to work through it – through times tough and easy.

Stick through it and show up every day.

You will not have to walk on fire to achieve this but there may be some tough days in between.

7. Enrich yourself.

This is important in all situations.

More so, if you are stuck in an industry that is not sunrise. Take time to learn about new things – to enrich you and move ahead.

I started learning to code when it was not cool to do it, and started blogging when it was not mainstream. It has helped in ways I could never imagine.

Learn something new every 3 months. Think of what you enjoy and what are the opportunities are. Then go learn it. Focus on – less theory and more doing it yourself.

Check out resources like LYNDA.com if you want to learn a lot of new things sitting at home.

8. Hire support people for your home.

People spend a ton of time buying grocery, going to a drycleaner, fixing door knob and generally running errands. Hire help to get it done.

You can spend same time being with family 100%, reading a new book, working out.

This will help you enrich yourself and create a happy family. You will be at peace and will be able to give back to work and life.

This will turn into virtuous cycle of growth and satisfaction. A sure fire way to be happy (and make money).

9. Connect and help.

Connect with 4 new people every week. Great if they are from different background.

Connect 2 people (unknown to each other) and suggest how they can help each other. Do it 3 times a week. This will create positive karma and it will come back to you.

10. Take care of your well being.

A fit person is a productive person.

For God sake, do not be fit like the CEO who looked in great shape, and hit the treadmill every morning after barely sleeping for 4 hours every night. One fine morning he collapsed while working out on the treadmill never to get up again. He was 40.

Sleep well, eat well (not too much) and exercise regularly.

½ hour spent of your body – will make other 23½ fun and productive. Take time out to exercise.

Only a fool complains of not having any time for exercise, and needs to know that ½ hour spent on exercise will bring more clarity and higher energy levels.

You can do more in less time when you exercise.

11. Take off from work.

Do you come to work before everyone else does and you leave after everyone else leaves the workplace?

Then you suffer from time waster’s syndrome.( I just coined this term for people who are always at work and then they bring work home. This is a sure fire recipe to kill yourself and your relationships over a period of time)

Such an attitude and lifestyle makes you seen as who is available all the time.

You need to change this perception. This is done by adhering to a fixed work schedule.

A fixed work schedule (9 to 5) may not be fashionable – but it works wonders.

Arriving early is good but in that case finish your work, be super productive and leave early. If you work for a boss that needs you to stay back for long, you need to change your job.

Spend your evening working out, spending time with family and friends. Read, watch a new movie, go out for a concert or just sleep early so that your batteries are fully recharged for the next day.

Do not get into the habit of replying to emails really late in night. This will make people expect a response from you they send you late at night and also to those that they send you at night.

Take a look at 4×4 on ways to be more productive.

When you work to a fixed schedule and work smart – you can be more productive than average Joe by working on a fixed schedule.

Also take breaks – long ones if it works out. This will help people around your appreciate your presence.

Smart workers take breaks.

People miss you when you are not around. Nice people are missed even more. So be nice to those around you and take breaks.

A person worth missing is – one who leaves a mark and makes things work when she is around. Try and be that person and then take breaks.

Make people want more of you and then give it to them.

So these were 11 points to help you increase your income 60 times in 6 years.

Enough reading – get to doing.

BONUS TIP: This year, help 10 people increase their earning and create a better life. You can start by emailing this post to your friends.  Share on Facebook or twitter if you like. Stumble if that works for you.

Good for you as you create good karma and good life for yourself.

Thanks for spreading the word.

If you liked this post, you should me.

Photo by Noah Wesley.

Comments

  1. Ivana Sendecka

    Hey Mohit,

    I believe that first point -> walking up to your boss with new way of doing things and asking for rise is a dead end unless your boss is very aware and enlighten human being – which in most cases their are not. Their first reaction to your initiative is that they feel, that you are trying to tell them how dumb they are…So, one either do remarkable work without asking permission for it and then see if there is any feedback for it in the organization, if not then it is time to set out for freelance/entrepreneurial path. Tough? Yes. Crazy? Yes. Doable? Yes. Will the compound rate go up so easily? No. Being out there in the cold waters of mediocre industrial machine like world is difficult. But what other choice do we have? Just jump in and bring in some light, connect, be fit, help, and all the other excellent points which you have mentioned.
    😉
    Keep shipping your art.
    World needs more human beings who care, not more millionaires.
    Money will follow, but first get your hands dirty and give your whole being into creating positive impact, so one day when you will gone, you will be missed.
    Cheers from Slovakia
    – is

  2. Mohit Pawar

    Hey Ivana 🙂 thanks for sharing.

    Yes you are right. Enlightened bosses are far and few between. But one can give it a shot, right. Creating art and shipping it without asking for permission +1 It is solid recipe which never fails to work.

    I believe that if you are starting on a small base compounding is possible for 6 years – this is based on personal experience. Easy? No. Will everyone will be able to do it? No. But workable, doable? Yes. Times were never better to make it work 🙂 For a few it will be 60 times, for some rest it may be 30 times. But even if it 15 times that is good.

    I totally agree that world needs human beings who care 🙂 But what If we have millionaires and billionaires who care. Most of the times, they are in a position to make a bigger impact without asking for people’s permission. Bill Gates with his foundation is doing remarkable work in India and Africa and also funding research to help humanity.

    So I am for millionaires/ billionaires who care and yes without starting nothing will happen.

    Hugs and love.

  3. Kishor

    Hey Mohit,

    Very Interesting topic which most of us is interested in.
    All the points you have covered are quite practical and in fact I have well experienced most of them.

    Just one point from my side, is it really possible to double your salary every year (for salaried) considering the kind of global economic crisis we are going through since 2008? On an average a best performer in a decent corporate could expect a max of 15/20 % hike. However I do completely agree with your response to Ivana which in a way concludes that if we follow these principles we will certainly end up with better compensation than many professionals around.

    But I stronlgy believe this multiplication could well be achieved for a enterpreneur (though not that easy).

    Well written. Keep on sharing interesting articles like this. 🙂

    Regards,
    Kishor

  4. Mohit Pawar

    Kishor, thanks.

    Glad that you liked it.

    True, it is not take a cake walk. But it is about taking a leap of faith and then adding method to madness.

    Entrepreneurial wealth creation is certainly one way to do it.

    If a person is in a job and wants to give it a shot – first step will be to move past the expenses mark and get into the saving zone. Once should try’n reach there fast. Then start saving and deploy these savings to earn for you – while you are working in a job.

    15-20% growth is the norm. But here you will have to do add so much value to yourself by doing remarkable work that people start seeking your expertise. One may need to change jobs as shared in the post.

    Walking on a parallel path is another way – http://mohitpawar.com/parallel-path/

    There are multiple ways to do it.

    The person attempting this need to try many things one by one – and do it fast enough to arrive at what is working – within first 12 months of attempting this.

    Good luck as you move ahead in life, and thanks for stopping by 🙂

    1. Kishor

      Agree with you Mohit. Changing job (when things are not moving as expected despite of your best performance), walking on a parallel path and most importantly moving to saving zone would certainly help multiplying your wealth.

  5. Jigyasa

    Bang on!

    I came back to re-read as I could totally resonate with ideas that need to be worked on….or need improvement. Certainly..I loved the ‘go hunting…’ thing but as a matter of fact…I am currently in point 11 phase to make a come back.

    Thanks for sharing. You are wonderful.

  6. Yasir

    I must have read the article four times now. Now 64 times in 6 years sounds a tall ask initially! But the moment you see ‘believable’ and ‘workable’ coming in the next few lines, you are actually compelled to put the thinking cap on.

    Do we have examples of people who have done this before? Yes, galore! Workable, Mohit 🙂

    Also, I agree once you set a goal post each year for the next year, you end up being better and nearer to the goal (which is a good situation to be in).

    Health, relationships, work have all been taken care of along with money.

    You talk simple and write simpler. I am following 😉

  7. Mohit Pawar

    Thanks Yasir.

    Shared compounding road-map for simplicity’s sake. For most of us, who roll with it – will find varying growth %age every year. But that is fine.

    Yes, there are examples. Some of these insights come from my own life. I am pretty sure that this can be done – with a mix of belief, courage and discipline.

    Add Parallel Path – http://mohitpawar.com/parallel-path/ – some action, inspiration, analysis and you will see results served.

    Good luck going ahead 🙂 and thanks again for sharing your thoughts.

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