I believe I owe a previous employer for this catchy phrase. It was a sales environment, and if I remember correctly, his favorite phrase was “sales follow referrals like a dog on a leash.”
It’s one of those lines that’s just off-center and punchy enough to stick. The focus is that if you consistently do well and provide value for others, they’ll refer you to friends and family. Referrals, in this situation, are the overt markers of doing a job well. Sales are the ancillary benefit. In other words, prosperity is what comes when you do great work.
I love the concept behind this phrase. It’s simple. It’s powerful. It could easily be used as a motivational piece, or even as the last line of your email signature. And I think it applies to far more than just sales.
Where you continually find value, there you will find people willing to (quite literally) hand over their money. If you’re doing well, helping others, and providing real value to lives and communities, you will gain a reputation as one worth working with. “You” can be an artist, an NGO, an entrepreneur, a baker, a financial planner, or anything! The concept still applies. If you consistently do great work, others will support you. Then you’ll be able to support yourself! Money follows value like a dog on a leash.
Let’s say you’re a small business owner. When you start out, it’s really hard to gain clients. People have to get to know you and learn to trust you. This takes time. As it happens, though, you and your business grow. Clients become willing to write you a cheque because they find value in what you provide.
Let’s say you’re an avid blogger. It takes a long time to make a dent in the digital ocean. But as you keep blogging valuable, helpful content, people begin to take notice. They begin to follow you, to look to you specifically for advice. They’re willing to share your posts, boost your SEO, buy your e-books, and refer friends because they’ve found value in what you do.
Last example. Because this isn’t all about making money, it’s about doing the best work you can for every person, at all times. Let’s say you’re a non-profit organization for social justice. It’s a struggle, but as you make a few moves here and there, and help more people, others join your cause. They begin to support you, to talk with others about the issues you’re fighting for, and even to come alongside you. People will support and further your mission because they find value in what you’re doing.
Money follows value like a dog on a leash. This is a great line to live by! It’s not about getting rich, but about doing a job well. Whatever it is you do, do it to the best of your ability. If everything you do is done to the best of your ability, money, growth and support will follow.
People typically get into debt for various reasons:
a.) Purchases small or large. b.) Unexpected life events and their consequences like medical bills or damage to property. c.) Many people get into debt because of lack of control over personal finance.
For the reasons mentioned above, we tend to use a variety of products to finance our needs.
Three major categories are the following: 1. Mortgages – They are used typically for financing your housing needs. In some cases, people also borrow against their assets to finance consumption. Mortgages can be very powerful, and you can make it work for you instead of against you. They typically have a high value and an extended repayment period.
2. Loans – Loans are used typically for financing medium or large purchases like cars or equipment. Loans in most cases are dangerous as they are usually used for buying depreciating assets i.e., assets that lose value over time. Cars would be a great example here.
3. Credit cards – These are used purely for consumption purposes. It is very easy to take on more debt than you can handle using credit cards. Also, except payday loans or cash loans, credit cards are by far the most expensive type of debt.
THE KEY DIFFERENCE BETWEEN BAD DEBT AND GOOD DEBT Yes, there is a difference between good debt and bad debt. In simplest words: Good Debt – also referred to as leverage, can help you in building wealth and passive income. You can buy an asset such as rental property, finance it with a mortgage and grow your cash flow. Bad Debt – This is an inefficient way of using borrowed money. The key mistake here is that the amounts borrowed are used for financing day-to-day expenses or for purchasing items that decrease in value over time.
HOW BAD IS YOUR BAD DEBT? Each situation is different but you can use the following guidelines to check any warning signs in your personal situation: 1. You are using more than one bad debt products – credit card, overdraft facility, cash loan, car loan etc. 2. You owe more than 50% on your credit cards 3. All your monthly bad debt payments sum up to more than 25% of your income.
WHAT ARE THE KEY STAGES IN FIGHTING BAD DEBT? Three typical stages lead to bad debt elimination:
1. ORGANIZE YOUR DEBT You need to make a list of every loan product that you are currently using and describe it with the following details: total amount to be paid, monthly cost.
2. PRIORITIZE YOUR DEBT As soon as you understand your debt, you need to decide which one you will pay down first. My suggestion is to attack the ones that are the smallest in total amount to be repaid. Using this method, you will see effects faster, and you will get more disposable income shortly. 3. ELIMINATE YOUR DEBT Eliminating debt comes down to making extra payments against what you have borrowed. You need to take a good look at your budget and see where you can cut on expenses in order to use this extra money for fighting debt. You are also recommended to think about additional sources of income. Every dollar counts when it comes to fighting debt.
WHY IT IS IMPORTANT TO FOCUS ON BAD DEBT ELIMINATION?
Bad debt is not only costly but can lead to serious consequences in case of loss of income.
Bad debt is also slowing you down on your road to financial independence.
Bad debt, if not managed properly, will grow over time and lead to serious financial challenges.