When we think about financial goals, we often focus on income goals or sales goals. A lot of times, we believe that all we need is one big sale or one more raise to achieve financial freedom. But that is not always the case. In fact, control may be far more important than income.
Many people confuse a high income with being in control and feeling financially free. What we see all the time are individuals and business owners with strong incomes and solid revenue who still feel stuck financially.
The issue is not always overspending. More often, it comes down to how money is being used. People are unknowingly and unnecessarily giving away control of their money.
When you begin to view your finances through the lens of control, your decision-making becomes much clearer. The process becomes simple. If I use my money this way, will I be in control of it? If the answer is no, then you look for an alternative that allows you to maintain control. If the answer is yes, the decision becomes obvious.
Let’s look at some real-life examples.
Consider funding your retirement through a 401(k) or IRA. If you are under the age of 59 and a half, you cannot access that money without penalties. Even when you do access it, it is taxable. That is an example of giving up control.
Another example is aggressively paying down your mortgage. While it may feel like the right thing to do, you have to ask: does this put you in more control or less?
When you apply money toward your mortgage, you no longer control those dollars. If you need access to that money later, you must go back to the bank and requalify to borrow against your own equity.
Think about the psychology of that. You had control of your money. You gave it to the bank. Then later, when you need access, you must ask the bank to give it back to you.
So how much progress are you really making? And more importantly, how much control do you actually have?
This becomes even more important when you consider economic uncertainty. Nearly half of business owners expect a recession in the near future. And one of the first things to disappear during a recession is access to capital.
If you know you are going to need access to money at some point—and everyone does—then it does not make sense to place your money in locations where it is inaccessible.
We saw this clearly during events like COVID. Entire industries were disrupted overnight. Businesses that lacked access to capital were pushed to the edge of survival.
So how do you prevent that?
The answer is not simply to increase your income. Instead, it is to improve how efficiently your money is being used.
A useful analogy is a leaky bucket. If your financial system has holes in it, pouring more income into it will not solve the problem. The first step is to identify and fix the leaks.
We follow a four-step process to help people regain control.
The first step is identifying where you are giving away control of your money. This is often easier than people think once you know what to look for.
The second step is the hardest. You must stop doing what you have been doing, even if it feels right or is commonly accepted. Just because something is widely practiced does not mean it is effective.
The third step is to redirect your money into a place where you have full liquidity, use, and control. This is where the shift begins to happen.
The fourth step is where everything comes together. You begin using that pool of money strategically. You can borrow against it and repay it on your terms, effectively controlling both the money and the cash flow tied to it.
At this point, you are no longer just saving money. You are controlling how it moves and how it works for you.
This entire process is not complicated. It comes down to making small but meaningful changes in how you think about and use your money.
If you would like to learn how to implement this system for yourself, your business, and your family, visit our website www.tier1capital.com and click the “Schedule Your Free Strategy Session” today.
Thanks for reading, and remember it’s not how much money you make, it’s how much money you keep that really matters.