Wouldn’t it be great if you could take care of all your financial obligations, and better still cut loose the shackles of debt that constantly threaten to drown you in a sea of financial misery?
Well, keep reading and you’ll unearth the keys to unlock the doors to unbelievable possibilities in your finances.
Before you are done reading this article I will show you how diversifying your income is critical and what you must consider before you can effectively attain it.
Diversifying income streams is paramount if one is to enter into the realm of financial freedom. The new streams you are contemplating could be;
a) Passive Sources
Include investments into financial instruments such as shares at the stock exchange, government securities such as bonds and trading in money markets
b) Active Sources
Entrepreneurial ventures where one is actively involved in the process of income generation
Why should you multiply your Income Streams?
- Meeting daily needs
- To manage debt levels
- Income diversification
- Skills utilization
- Talent monetization
- Value addition to available resources
- Boosts self-esteem; creating new enterprises enhances self-confidence.
- Creates employment opportunity for others
- If you desire to be philanthropic
How do you Choose Your Path to Income Diversification?
Certain factors will influence your choice of an investment option.
Come along as we check them out.
You will usually do best what you can do well already. Skills are the armor you have acquired through upbringing, training, experience, or observation and practice (apprenticeship). They will determine what you can do & how well.
Skills may be learned or developed further by practicing, taking a relevant course, or even watching appropriate YouTube videos.
Interests or Hobbies
Generally, people are unusually motivated and productive when engaged in an activity they are passionate about.
These include sports, arts, cooking, music.
Demand for your product or service
The acid test for business viability is whether there are people willing to pay for the idea.
Some ideas may be great on paper but are dead on arrival in the real world.
Focus on ideas that can generate you some profitable return.
This may entail coming up with an entirely new product or service.
At times, it may just be a better way of doing things to deliver incredible convenience and a new experience to your target customers.
Innovation can span every possible field such as music, fashion, public speaking/comedy, science and technology, and fine art.
How much do I have (or can I access) to finance my idea? The resources at my disposal will dictate what I could invest in. It would cost more investing in heavy machinery hardware and distributorship business than opening a fast food restaurant downtown.
Appraise yourself realistically and ponder on other available financial facilities you may possibly tap into for your soon-to-be business.
Having known that you now need to move into action.
Here are two practical steps essential for that to happen
a) Make Your Personal Inventory
Consider the interests, experiences, skills, creative ideas, possible solutions to local challenges you have thought of, cash/capital
b) Draw Your Action Plan
List idea(s) you’ll undertake within 30-60 days to diversify your income.
Research on the idea that best suits you.
Write down your action plans indicating timelines.
Implement the plan
As you have already observed, gaining financial freedom is a journey towards a destiny and not an event. Financial freedom is realizable not just by desiring it but by taking appropriate action to attain it. Only you can take action by starting NOW.