Having “multiple streams of income” is a desire a lot of people have, but are not able to fully accomplish.
Folks desire to make more income that can adequately cover their bills, but do not understand how to navigate the process of doing so.
Here are a few points that will help you chart your path to creating a system that will help you enjoy multiple streams of income in the new year.
1. You can make your money work for you to fetch you more money.
This is what we often refer to as investments.
However, the desired goal of investing money in order to make more money is not achieved because a lot of people do not fully understand how investments work.
Investments are meant to make your money, make more money (sweat your money) and build your portfolio over a long time, based on certain factors.
No investment is, however, risk-free. Investments can fail and, in some cases, may not yield the expected returns depending on the class of assets being invested in.
Some of the mistakes people make before investing include not having succinct investment goals, not understanding the products they are investing in, and not understanding the various asset classes they invest in.
Some people invest because their friends are investing, and others do so because of the very attractive returns promised on such investment opportunities.
The main goal of investing is to make more money for you, so keep this in mind as you invest your money.
Going forward, before you invest, you should consider the following factors:
Knowing your cashflow levels allows you to determine the amount you can comfortably invest.
Knowing your investment goals or objectives can help you determine your priorities and ask the necessary questions. For example, a question you should ask yourself is: “Do I want the safety of my capital or the growth of my portfolio or income on a regular basis?”
Knowing your investment time frame.
Knowing your risk tolerance, and how much of risks you are able to take.
Understanding your asset allocation and the different types of investment products you want to purchase.
2. You can make more money by monetizing your skills and talents.
A lot of people are fixated on investments as a source of substantial extra income, but the truth is, you need a substantial amount of investment capital to generate the kind of substantial returns you desire, and this takes time.
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While you work out your finances and make larger and better investments, you must understand that you are an asset with the potential to generate more money in the near future, even more than your investment portfolio.
Consider how your speaking skills as a speaker can earn you more money per engagement than your portfolio can in three months.Wisdom then dictates that you invest in honing your speaking skills so that they can fetch you more money as you use them better.
An artist can perform at a show and earn much more than his investment portfolio will return in one year.
Imagine Cristiano Ronaldo being offered a three-year contract with Saudi Arabian giants Al Nassr after the World Cup for a whopping $225 million. Even though taxes will apply, it takes a lot of work to build an investment portfolio that will yield such returns.
Your skills and talents can make you much more money than you can imagine.
3. You can make more money through leverage.
Leverage in personal or business finance will enable you to build more wealth than you could ever achieve alone by making use of resources that aren’t necessarily yours. Other people’s time, efforts, skills, and money are examples of resources that you can utilize to make more money for yourself.
A business owner uses the talents, skills, and time of his employees to make money, even though he pays them. At a more practical level, two people combining efforts and resources is also a good example of leverage.
An individual can also leverage existing structures and systems to make money. For example, earning commissions as an affiliate of a company allows you to leverage an already existing structure to make money. You may earn more money by going into collaboration and partnerships, which are usually a merger of resources. Someone has the skill; another has the talent; someone has the time; another has access; and they combine all of these in arriving at profitable ventures.
Consider these tips ahead of 2023 and watch your dream of multiple streams of income become a reality.
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