Enterpreneurship | |
Enterpreneurship | |
762 VIEWS | |
![]() |
Tuesday, January 19, 2021 / 09:50AM / Grace Agada / Header Image Credit: Weird Worm
One
of the major roadblocks to financial success is to depend on a source of income
that can barely sustain you. When you have limited amounts of income there are
only two things you can do. The first thing is to reduce your expenses, while
the second thing is to earn more income. Reducing your expenses will not make
you rich as there is only a small room for what you can reduce. Thus, the main
purpose of reducing expenses is to prepare the way for new income to come in.
If your expenses are not well-adjusted before you bring in new income,
additional sources of income will only serve your living standard and not your
need for Financial Independence or Freedom. Thus, the main reason for reducing
expenses is to maintain a living standard that makes additional income
beneficial for your independence. The second thing you must do when you have
limited amounts of income is to make more money. Making more money is the
fastest way to becoming rich as there is no limit to how much money you can
make.
How then can you make more money?
To
make more money there are two options to explore. The first option is to
increase your Passive income and the second option is to increase your active
income. Everyone at first glance wants to increase their passive income but not
everyone has the required number of seed to produce solid passive income.
Increasing your passive income requires active income. No one makes passive income from thin air. A
solid passive income requires the investment of a solid active income in the
right investment vehicle. This means that if your active income is weak your
passive income will also be weak, and if you invest this income in the wrong
investment vehicle you will lose your savings.
While
you can produce passive income from your limited savings. It is a mistake to
depend on it for your financial independence.
To
achieve financial independence with speed you must first convert your active
income from weak to strong and invest these incomes in the right investment
vehicles. You must also create Lifetime passive income that does not require
ongoing work. To create a strong active
income, you need to increase your sources of income from one to many.
So,
after you choose a source of side income how do you make money from it?
To
make money from any side income you need to develop what I call Rich skills.
Rich skills are the only skills that can make you rich. Although there are many
other skills that can earn you income, only the rich skills have the capacity
to make you rich with speed. They have this capacity because they solve high
value, high risk, difficult to solve problems that command high income.
These
Skill which I also call Freedom Skills are
1. Problem-solving skills also called
creativity or innovation skill.
2. Relationship building skills also known as
Networking skills.
3. Marketing skills also sometimes referred
to as sales skills.
These
three skills are important especially if you want to be rich within a
reasonable time frame. They can make you rich as an employee and they can also
make you rich as a business owner. The beautiful thing about these skills is
that they align with the way money is made. Money is made when you solve a
problem (Innovation & Creativity skills) for other people (Relationship
skills) in exchange for an agreed reward (Marketing skills). These skills are
your fastest flight ticket to financial freedom.
How to Develop the Freedom Skills
To
develop the freedom skills, you need three things.
1. A knowledge system. To learn any new
skills, you need new knowledge.
2. An opportunity system. Knowledge without
the opportunity to apply knowledge is not power. The average person in Nigeria
is a graduate with so much knowledge but little Money. To make knowledge
financially beneficial you must convert it to understanding. And the only way
to do this is to apply knowledge through deliberate action. The opportunity
system is thus a system that provides you the platform to act, apply knowledge,
and practice your rich skills.
3. The money-making system. The reason why you developed a skill is to make more money. Making money involves leveraging a money-making system. Without a platform that gives you the opportunity to make more money you cannot become rich.
About
the Author
Grace Agada is the
Senior Financial Happiness Director @ Create Solid Wealth. She is an Author,
and Column Contributor in Six National Newspaper. She is a contributor at
BellaNaija, Nairametrics and Proshare and she is on a mission to help
working-class professionals and CEOs become more financially successful. To
learn more about Grace and how she can help you send an email to info@createsolidwealth.com
2. How to
Invest for Wealth and Financial Success
1. Knowing your Money Profile: A Bedrock to Financial Stability for Millennials
2. Perspective on Personal Finance Management Goals for Women in 2021 - Elizabeth Ekpo
3. 6 Ways to Do Investment Savings for Beginners
4. Budgeting for Millennials: Foundation of a Successful Financial Plan
5. What is Target Saving and How Can it Work for you this and Every Holiday?
6. 5 Tips on How to Raise a Financially-Savvy Child
7. How to Move from One Income To Many
8. How to Invest for Wealth and Financial Success
9. Building Solid Income Security from Uncertain Income
10. Thoughts on How to Build Solid Wealth
11. The Paradox of Thrift and the Drag on the Nigerian Economy
12. Savings: Living with Purpose and Compound Interest
DISCLOSURE: This content reflects the views of the author(s) drawing on prior research and experience in their areas of expertise. It is not a reflection of our institutional position; and is not a recommendation to act based on the opinions expressed or names/products mentioned therein. Proshare Content and their owners, managers, employees, and assigns (collectively the "Company") are bound to comply with in-house governance rules requiring this necessary disclosure to ensure that readers, subscribers and consumers understand what the content is. All T&C applies.