Beyond Six Figures: Challenging the $100,000 American Dream
In this solo episode, Christy discusses why she believes that the six-figure American dream is dead. Christy explains that while making six figures may seem like a significant accomplishment, it may not be as financially secure as it once was. Christy shares her research and personal experiences to argue that aiming higher than six figures is necessary, especially for business owners. She challenges the idea that $100,000 is the ultimate financial goal and encourages listeners to rethink their financial aspirations. Tune in to this thought-provoking episode to learn more about the evolving landscape of financial success.
Listen in as we speak about:
Why the six-figure American Dream is dead
Normalizing making a million dollars
Understanding your numbers and pricing
Why the Six-figure American Dream is dead
Christy explores the idea that earning a six-figure income is no longer sufficient to achieve the traditional American dream. She believes that the notion of living the American dream with a comfortable lifestyle, including a nice house, a family, and financial security, is no longer attainable with a six-figure income. She acknowledges the achievement of earning six figures but emphasizes that it may not be as significant as it once was.
Even people earning over $100,000 now live paycheck to paycheck. While this may be alarming, Christy breaks down the numbers to explain why it is not surprising. Rising expenses and cost of living have risen significantly, making it even more challenging to achieve financial security and the American dream with a six-figure income. Christy emphasizes the rising cost of living, expenses, and taxes that significantly reduce the take-home income, leaving little room for discretionary spending and saving.
Normalizing making a million dollars
Christy acknowledges that this may seem intimidating at first, as it requires a shift in mindset and the belief that achieving such a level of income is attainable. Christy shares her own experience of initially feeling overwhelmed by the idea of a million-dollar business but eventually normalizing it and embracing the possibility.
Christy also emphasizes the importance of optimizing taxes to maximize income. She suggests exploring different entity statuses and understanding how business decisions impact taxes. She cautions against making unnecessary expenses solely for the purpose of reducing taxes, as the cost may outweigh the savings. Instead, she advises individuals to educate themselves on tax strategies and work with professionals who can help them navigate the complexities of the tax system. In today's economy, we need to reevaluate what it means to achieve financial success.
Understanding your numbers and pricing
Christy argues that many business owners have a belief that they will "make it" once they hit a certain income milestone, such as $100,000. However, even business owners making well into the seven figures can still feel like they haven't "made it" financially. This is why you need to know your numbers and create a plan to achieve your financial goals. This means understanding the amount of money needed to take home a desired income and creating a plan to reach that goal. Wealth building doesn't happen by accident or chance, but rather through deliberate and proactive efforts.
Business owners must know how to price their offers correctly. Many business owners have been hesitant to raise their prices, which has led to decreased profit margins. Business owners should include their own time as the owner in the cost of their offers, as their time should be considered valuable. Additionally, you should consider all the time and effort that goes into a project, including tasks like sales calls and onboarding. Offers may need to be priced higher than initially thought in order to account for time spent on non-revenue-generating activities like advertising and sales calls that don't convert. Christy encourages business owners to regularly reevaluate and adjust their pricing to ensure they are making enough money to cover all aspects of their business.
Connect with Christy Bowie Financial Solutions:
Join the FREE Business Owners Community
Music from Uppbeat (free for creators!):
https://uppbeat.io/t/atm/on-a-journey
License code: JYEEKQFXETP7AT79
