On The Path Of Winners
BY BAYO OGUNMUPE
How To Create Multiple Streams Of Income
THE first code of practice in your march toward financial freedom is financial discipline. Many have gained financial intelligence, established financial plans but have never been disciplined enough to start executing their plans and adding action to their decisions. Some have even started but lacked the grit to stick to their plans and stay consistent till the benefit is achieved. All knowledge or principle learnt becomes useless until they are applied and practiced. You have to act on your knowledge before you attain any change in your circumstances. Thus, action, discipline, persistence are necessary to attain your wishes.
Another code of practice of the would-be millionaire is the culture of saving. To enable you save, you must have a bank account. It is a must for those seeking financial freedom. Not having a bank account is a sign that you are a spend thrift. Without an account, you will end up spending your money recklessly without vision, purpose or planning because it is easily accessible to you.
This leads you to budgeting. Budgeting is a financial planning mechanism to help you secure financial freedom. It is the estimate of your expected income and expenditure over a period of time such as a month, a quarter or a year. The budget is the forecast of your income, expenditure, assets, liabilities and cash flow for a specific period.
Here are reasons why you need a budget: One, it helps you control your money instead of your money controlling you. Two, it helps you ascertain whether you are living within your means. Three, it assists you to achieve your savings and investment goals. Four, through budgeting, you know whether you are on your way toward your goal of financial freedom. Five, it helps mitigate financial emergencies and unexpected expenses that might destabilize you. Six, it keeps you out of debt. Finally, it brings into the open areas where you are spending excessively. It enables you to focus on your essential financial goals.
In your march towards financial freedom, starting your own business is the most powerful means of attaining financial independence. The second best sources of creating wealth are real estate, while buying shares becomes a poor third. There are no other ways to become wealthy other than the three outlined above.
However, a business owner only succeeds when he has the entrepreneurial spirit and the skills of his line of business. He must acquire business management abilities.
To start your own business, ascertain your forte, but not necessarily what you studied at school. Also, you must have a vision of what you want to achieve. But not a single millionaire has only one source of income. A millionaire’s sources are like the sources of water of the ocean. The ocean has multiple sources of water. The sea is alive and full in all seasons.
You should stay like an ocean and become wealthy no matter what comes your way. You should establish various sources of income. There are many dimensions of streams that exist in wealth creation. A source of income is where you once worked and you were paid for it either as a clerk or as a labourer. You build a house once and it keeps bringing you money as rent. You produce an album once and it keeps bringing money. You write a book once and it keeps bringing money.
There are three types of income: earned income, portfolio income, passive income and these streams fall into three categories. One, discover your dominant stream of income. This is either, a paid employment or a career like a practicing lawyer or physician. Perhaps you have a business of your own. Then, use your financial intelligence to develop other streams by diversifying your abilities.
As you operate within your dominant stream, you begin to operate the thirty per cent (30/70) principle. This enables you to use twenty per cent of your savings to activate other vehicles of wealth – the other streams. Shooting out of your dominant stream, you create up to four more vehicles of wealth creation. Once you have started up other streams, you now have different vehicles of wealth, producing money for you. Thereafter, you ensure that you consolidate and establish each stream fully and then keep on expanding until you become a force to reckon with on your occupation. Don’t think of what you don’t have, start with what you have from where you are now. See you at the top!
But beware, success without a successor equals failure. The primary reason God prospers people is to empower them to establish His kingdom in paradise, eternal life, or Aljannah Fridaus. After you are prosperous and have all the wealth, what you think of next is to pass on the wealth to your descendants and the succeeding generations. That means you must acquire the posterity mentality. This means you become generation-minded in order to fulfill the purpose of Jehovah for man. You must develop the posterity mindset and generational thinking in order to pass on your legacy of achievements. God empowered everybody to become rich so that His kingdom on earth can endure forever. We cannot fulfill this dream of Jehovah if we don’t become generationally minded and become an extension of God on earth. ‘‘A good man leaves an inheritance to his children’s children. But the wealth of the sinner is stored up for the righteous,” Proverbs 13:22. Thus, God expects your legacy and inheritance to be two generations compliant. If you didn’t, it means you have not maximized your existence. When you assimilate this generational nature of Jehovah, you will become more responsible, for if you do evil, that evil will affect your generation.
This puts paid to the African belief in jeun omo – meaning reaping from caring for one’s offspring. The scriptures expect people to labour for their children not the other way round.
Regarding the wealth of the sinner being laid up for the just, you can gain from such wealth transfer if you are righteous and own your own business, private businesses are the vehicles by which God makes wealth transfers.
Our champion this week is Joseph Schumpeter, the Czech Republic born American economist known for his theories of capitalist development and business cycles. Born in Moravia in February 1883, Schumpeter was educated in Vienna and taught at the universities of Graz and Bonn before moving to Harvard University (1932-50). In 1919, he was minister of finance for Austria. His influence in economic theory was great. In his authoritative, Capitalism, Socialism and Democracy (1942) Schumpeter argued that capitalism would eventually perish of its own success, giving way to socialism. His history of Economic Analysis (1954, 1966) is an exhaustive study of analytical economics. His other works include The Theory of Economic Development and Business Cycles, 2 volumes (1939, 1964). He died in Connecticut, United States in 1950.