Having multiple streams of income is touted as the the way to build wealth. Compounding your earnings could be as valuable as the concept of compounding interest.
Compounding is the skill of using what you have to earn more, then using all you have amassed to keep earning more…indefinitely, multiplying the inputs to growing outputs over time. Time is the best friend of compounding efforts, the earlier you start and stay the course, the more you earn in the long run. Warren Buffet is the master of compounding interest, and even though there have been other investors who are much better than Warren, he is still stands as the Investment Mogul…simply because he started early! Warren Buffet started his first investment at 10 years old and at 90 year old he is valued at 81 Billion (Practical Lessons from Warren Buffett)
Applying compounding effort to your income earning potential is something that must be visited, if growing wealth makes it to your Goal Positioning Strategy. The fact is, your income determines your lifestyle. Your income also determines your health and mental state to a large degree, as supported by a 2015 Survey done in the states ‘How are income and wealth linked to health and longevity’
So how does one go about Compounding Income – Multiplying Streams?
While the idea of formalizing multiple streams of income is a relatively new concept fueled by job insecurity and a growing need to be flexible with earning, the truth is that Jamaicans are perhaps a lot more well seasoned into the idea of multiple income streams, for us, it is a hustle, buy and sell, fish fry, cook out, drink out. Here are some of the other things that can be used to earn additional money.
- Offer your services – are you a personal assistant, content creator, web-designer, data entry person? Consider a membership in online platforms such as FIVERR or UPWORK is a good idea. You can vet the total list of available platforms here
- Host an event to cover a specific financial goal? Once your GPS is done, you will have an idea of what you would have set out to achieve and the particular timeline assigned. Maybe hosting an event to be supported by your friends can work. Sometimes, you just need to push out and get what you want. Who knows, this could turn out to be a income source (I am hosting a Seafood Boil on June 25th – Called Seafood Addict, order by following this LINK!) One note is, everything you do must be done to the best of your ability, it is part of your brand, who you are.
- Dropshipping – if you feel you have impeccable style and can advertise pieces of clothing or items that other people would like to buy then dropshipping is an option. You can start a business without actually spending the money to buy goods that may potentially sit on you, tying up your money. Check out Dropshipping in 2021
- Rental Income – Rental income is cashflow and cashflow is king. If you have a piece of equipment, a car, that you can rent out, that is not a bad idea. An expenditure is only an asset if it earns income. A car is an expense, unless it is earning income. A house is an expense unless it earns you rental income. Consider buying property or even land, that may be leased to earn you more money. I advise clients to get into the properties market early, the younger you are is the cheaper your mortgage will be and the more excited you will be about making the big bucks in the future. Read Wihcon’s Home Buying Guide here
- UBER? – The Jamaican local landscape is abuzz with the news of UBER coming to Jamaica. This could be another way to earn additional income on your own time, if you feel like and are available. Read more about how UBER operates to see if this is something you could do to earn more.
Earning multiple passive streams of income is a great way to build wealth and make money in your sleep, but ensuring you have cornered Financial Security as a first step is more important than setting sights on wealth building. In the same way you cannot build a house without a solid foundation, building wealth without financial security is a very backward move, one that can work out to being very costly with a big gamble on ‘bouncing back’.
The 4Ps to Financial Security are:
- PREPARE – Set up an EMERGENCY FUND of 6 times monthly expenses, Emergencies with important expenditures will never again hold at hostage your purse or your peace of mind
- PROVIDE – Start setting up your future and your legacy with LIFE INSURANCE. Getting life insurance lines up owning property, retirement as well as ensuring none of your ‘seed shall beg bread’!
- PROTECT – CRITICAL ILLNESS INSURANCE coverage protects you while you build your financial strategy. If there is no you, then there is no plan, no opportunity for you to make a difference for your children and family. So protecting you is important.
- PROFILIFERATE – INVESTing in products that provide compounding interest is a great way to commit to a long-term wealth development strategy. It proves you appreciate the importance of time in securing your finances and every other thing you want to achieve and that planning for time and steady growth is wise, like Warren Buffet.
Contact me to talk about taking this practical advise and making it more tailored to you and your -personal circumstance. Whatsapp or call me @ 876-818-7624 to book a consultation. I look forward to strategizing with you!
