12 Dec Vercie’s Financial Freedom Tip of the Week: Diversify your income to survive hard times and generate more wealth.
“I believe the children are the future. Teach them well and let them lead the way….people need someone to look up to, I never found anyone who fulfilled my needs. A lonely place to be so I learned to depend on me. I decided long ago never to walk in anyone’s shadow. If I failed if I succeed, at least I’ll live as I believe. No matter what they take from me, they can’t take away my dignity!”
Verse from “The Greatest” movie sound track
Some of you may remember this verse from a song written so long ago as part of the movie sound track from the “The Greatest”, the original movie sound track about Mohammad Ali’s life , sung by George Benson and later remade by Whitney Houston before it became much widely known.
I know you’re probably thinking by now, where’s Vercie going with this Financial Freedom Tip. How is this history lesson about a boxer and a song track from an old movie going to help me with my finances? I thought Vercie was sharing tips about money, not social or moral issues?
We’ll it’s all connected. Whether you’re a high profile athlete, entertainer, politician, or a simply hardworking person who loves his company never put too much of your hopes and financial future at risk by relying solely on the decisions of others (you’re current employer, your boss, your co-workers, or clients if you’re in business). We can hope for the best but we need to be practical since the odds are most of us will face unemployment and need other sources of income to sustain us at some point in our lives. We need to depend on ourselves no matter how good life is right now. Life changes in instant and so can the income you receive from that great job, that great company, you’ve been so loyal to for so long.
Wealthier people typically build their wealth and increase income by creating multiple sources of income that can be invested or simply used to create a pay raise for themselves when their employers won’t. Most use passive income (income from real estate, business investments, stocks, bonds and etc.). However, so many of us never think about creating passive income or simply insuring against loss of our primary source of income (our job) to meet life’s basic needs in the event of being fired or laid off. This week’s Freedom Tip is all about helping you create more income streams using simple; proven solutions. I hope you give serious consideration to the practical ways anyone regardless of age, education or income level can secure their future, create multiple sources of income and Make it Rain.
Buy income replacement insurance if needed – Consider buying replacement insurance if you’re still working and don’t have enough money saved (invested) in an emergency fund or if you don’t have a 2nd or 3rd source of income to keep you afloat if you lose your job. Contact your local insurance representative for help. They’ll meet with you to discuss your income needs and select the right investment to provide a safety net for you and your family. I’ve purchased this type of insurance to protect my family from financial ruin while I was younger, building my wealth and hadn’t accumulated enough cash in the bank to meet our expenses in a pinch. Depending on your current age, employment situation, wealth and income needs this may be a viable option to consider.
Sell gently used stuff at the local flea market – Many of us are hoarders who have valuable stuff people want lying around the house in closets, in the basement, in kitchen cabinets, in the garage and etc. When we get fed up with all the clutter we call “1-800-Got Junk”, donate it, or take it to the trash dump. That’s poor person thinking. Take pictures of the stuff you’ve been hoarding, put it on Facebook’s Market site and make out like a bandit. One person’s junk is another person’s treasure.
Become an amazon or eBay seller – Go to local stores and buy durable out of season items that are on sale (not the latest clothing). Sell them as soon the next season comes online at a local flea market or online. I’ve read that some people have turned this idea into million dollar businesses after realizing how easy it is to do. Big retailers (Walmart, Target, Kohls, K-Mart …) discount stuff just after the seasons end. With a little planning you can buy stuff people need in the future for 30-50% off and sell it next season for retail price or just under retail price to make out like a bandit. If you want to go big you can go online and buy stuff in bulk after each season and focus on selling just a few types of items. If you buy stuff that never goes out of style or household items people need you should do well.
Real Estate Investing or Selling as a Side Hustle – Another side hustle to consider that most millionaires use to create income is selling or investing in residential and commercial real estate. Consider taking a course to obtain a real estate license and begin selling properties on the weekend or buying properties to flip or rent. The more you learn the more you can earn. Realtors get access to properties before they are placed on the public market and if you hustle you can find great deals to flip or rent without competing for offers. Just for grins. If you’re young and want to be a billionaire by doing this you can. I know a Billionaire who started off investing in real estate after working as a grocery store bag boy, and later a store manager out of college. If only I knew then what I know now…
Build a Seasonal Work Side Hustle – Look around for part-time work, especially seasonal work to create a second source of income. During summers, tax season, and fall after kids go back to school there’s always an opportunity to secure part-time work (more income) to save more and invest more. In the spring, summer and fall you can take on easy home maintenance jobs (purchase a couple mowers, ladders, painting equipment, a pressure washer, and trimmers and hire a few high school kids, college kids or adults looking for seasonal work to mow lawns, paint fences, paint, or power wash (clean) decks, siding, porches and other external areas around houses located in upscale (middle and upper middle) income areas of town.
I recently read an article by an Contributing Author, Tom Corley related to a study of millionaires and it indicated that most gain wealth and are protected from financial ruin by having multiple income streams. When I read it I said to myself. What the heck, he’s spot on. I did that and it surely helped on my journey! I owned a BP station, Multi-Family Real Estate Properties, dabbled with an online clothing store (Phenom Gear), and I’m currently an Angel investor in three startup businesses. While none of these side businesses created an incremental million in income they definitely helped me accumulate more wealth and learn how to run a business. I’ve sold several businesses and now have a little more wealth to invest and ultimately create more income for my family.
Given today’s business climate anyone who thinks they can rely solely on their company or the kindness of their boss to take care of them for life is mistaken. Each of us is accountable for our future. Remember the key verse from movie sound track of The Greatest. “I decided long ago never to walk in anyone’s shadow…I learned to depend on me. ” Your future is in your hands. Don’t rely solely on your employer to be there when you need help. Diversify your income stream to earn more money and invest more to secure your financial future.
Anyone can be a Rain Maker once they know how. Have a great week. Love ya’ll and remember to go out there and Make It Rain!