Multiple Streams of Income (MSOI)


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I was first introduced to this term by Bob Proctor, a prominent Canadian author and motivational speaker on matters of financial wealth, among other fields related to human success (the definition of human “success” varies depending on the paradigm we use).

The concept is fairly simple, but not simplistic. During and after the industrial revolution (1760-1840), most workers started earning their income through employment in factories and enterprises that supported factory work (banks, press, railways, post, mining, and so forth).

By the turn of the 20th century, more than 50% of the North American workforce had shifted to employment. Excluding the Great Depression period (1929-1939), that percentage had experienced an upward trend, reaching its peak during the era after WW2. Fewer people took farm jobs or started their own ventures. Large corporations absorbed small businesses, manifesting capitalism on a wide scale.

Most of the population had retired to a sense of financial security derived from a “guaranteed” paycheck. The widespread possibility of serving the same employer for prolonged periods of time had supported that disposition. Job security had been perceived as a reality.

The Information Revolution came to shake things up. By the mid Eighties, assured continuation of employment had taken a backseat. Clinging to a job that would end with a two-week notice turned out to be questionable.

Disruptive changes are not always bad. They serve the individual(s) who is open to learning and growing, riding the wave of change, instead of getting washed out by it. Rigidity is synonym to breakdown!

Where does all of that lead us to? Flexibility, autonomy, and being in command of one’s life. Blindly following the crowd is risky, and oftentimes, intellectually and financially fatal. Relying on one source of income in today’s economy is not a wise choice, to say the least.

What are the alternatives? Take multiple jobs at different companies? Work “harder” at the same job to the extent you forget your children’s names or birthdays?! Or rely on social programs, where they exist, to bail you out when the unfortunate happens?

None of these options is viable. We can easily discount the first once we consider the conflict-of-interest provision in any employment contract, let alone the strenuous stretch and excessive stress endured by the employee.

The second is possible, and so many people have traversed that rocky path. However, the impact on personal life is undeniable. Furthermore, those who put 70- and 80-hour work weeks are not immune to reorganization storms. Management by numbers has become the rule at the end of the day!

Social programs can help, but they are not enough. They are meant to supplement other incomes, not replace them.

Now we’ve come to a point in our study where we are ready to consider better alternatives. Alternatives that lay a strong financial foundation, upon which to pursue higher intentions. The tool must remain a tool. When making money becomes the chief concern amid the struggle to “make ends meet”, life loses its meaning, its exuberance and joy. Happiness seems like a mirage dancing on a sun-broiled horizon.

Here is a mathematical representation of the solution:

T = P + (n * S)

T: Total income

P: Primary income

S: Secondary income

n: Number of secondary sources

P could be a form of employment or an established business. What about S? It can be any legitimate, ethical activity that produces money in exchange for providing real value.

Investing is one example. Online stores, part-time teaching/training/coaching, freelance writing (blogging, publishing, technical writing), creating digital products and selling them online on sites, such as Amazon™ and ClickBank™.

You could discover more sources. The bottom line is to find something you love and have the skillset to produce, grow and maintain, without jeopardizing your personal life. Again, we’re building a foundation, not a whole structure.

I have covered investing in great detail throughout this blog. You can learn about online stores by reading this particular post: https://soaring-eagle.org/2012/07/04/making-money-online-online-stores/

Please share with us your comments and suggestions. This article is not comprehensive, as the possibilities are endless. Its aim is to open doors of exploration, to deliver the message that there is more to work-life than a single option…

 

The Wealth Maker

 

© Image Credit: www.windowssearch-exp.com

 

How to Weather Financial Storms


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Wealth is a state of being. An orientation towards abundance that is unique. On one hand, you do not feel “entitled” to anything. You see what you have as a pure blessing. On the other, one believes he or she deserves prosperity as a birthright, and go out in the world to attain it, ethically and effectively.

Financial wealth is no exception. It comes as a result of who you are, and how you translate that into enlightened, guided and productive actions.

Like everything in this short passage called “life”, like the oceans that ebb and flow, the state of our physical wealth may go through ups and downs. The frequency of such changes could appear over the course of years, or months, depending on the structure of your financial foundation, and your short-, mid- and long-term decisions.

When everything is alright, everything is alright! Friends and family are close, all is well, and everyone is “seemingly” happy.

As things start faltering, guess who sticks around? Only those who love you, or like you, regardless of your financial status, or any status for that matter. This is important to know in good times, not only in bad times. It helps choose whom to trust.

On the practical level, it is advisable to always have, stowed away, a six-month reserve to cover basic, essential needs: Food, shelter, car, school tuition, etc.

What if the downturn lasted more than six months? It is possible, and we’ve seen it, especially in a soft economy. Here comes the importance of long-term planning, and preparation. As a master of your ship, you can “see” those black clouds before they hit home, and get to work on your plan B, C or even D (of course, you do have at least B 🙂

How about the emotional side of things? This could be tougher!

How can you maintain your composure, your strength, and your trust in a higher Power that knows what you’re going through, and will never leave you alone, as it always has?

This is not theoretical, or abstract. It is as real as it can get. We need our emotional and spiritual energies at their best. Otherwise, the storm might wipe us out, no kidding about that …

What we do when “everything is alright” comes to the rescue when things are not alright. Serving others quietly and candidly, helping the needy, being active volunteers in our communities, nurturing the relationships we’ve built upon love and trust. But the most important is cultivating an unwavering faith, a special connection beyond space-time and cause-effect restrictions. All of that is a different kind of “deposit” in a mysterious, yet real, emotional/spiritual account. We deposit without keeping track, for it comes naturally out of who we truly are!

And finally, we need to remember that no storm lasts forever, and that every storm brings with it opportunities for growth, which would’ve never been possible otherwise.

The Wealth Maker

© Image Credit: http://www.comparethemarket.com.au/

The Wealth Making Architect™


If you performed a Google™ search on the above title, you’d get something along the lines of either wealth advisors or engineering architects.

I wanted to introduce this term to reflect the necessity of building wealth from the ground up. Furthermore, to emphasize that “wealth” is not only financial. When an engineer designed a house, for example, he/she would take into consideration all the aspects which would make that house livable and ready to become a home!

Another vital step in creating that architecture is to create a blueprint. Have you ever heard of any sort of construction that didn’t have a blueprint to start with, to build upon and use as a baseline?

A Wealth Making Architect (WMA™) is going to follow the path of his/her counterparts in other disciplines. However, instead of designing a brick and mortar dwelling, they design a life-long wealth making, growing, and maintaining epic, with the client being the hero.

And here’s a list of the steps involved:

  1. Find out what the requirements really are: Working closely with your client, you set an objective to clearly “understand” the hopes, the dreams, the needs, and the responsibilities of that client. Once you’ve reached such understanding, you turn it into a set of specific, implementable”requirements”; one which the client accepts and feels satisfied with
  2. Now you go to the drawing board and create a solution derived from the requirements. This is easier said than done. How can you “weave” requirements into solutions? Into a blueprint that has an eye on the vision, and another on the strategy and plan. Your knowledge and expertise play a major role here, and that involves specific methods, processes, products and/or services available. Sometimes you might need to seek help from other members of your organization/team to “develop” new products or services that would meet the requirements (those must prove reusable with other clients in order to justify the cost and time of a new development)
  3. The next step is a comprehensive review of the solution with your client. Although you both had reached a set of specific requirements, the blueprint might not express what the client was hoping for. This could be the result of the client being not sufficiently informed/educated, or it could be a flaw in the design. Either way, a revision and an update version of the solution should be created. This can take more than one iteration
  4. Once you reach an agreement with the client on the blueprint of his/her financial story, you start translating that solution into long-term and short-term objectives. Each objective requires an action plan. Here comes the knowledge and skill of financial planning, or let’s say, wealth-making planning; the bits and bytes of what needs to be done on a daily basis
  5. Implementing the plans is not an open-ended endeavor. You wouldn’t hand them over to the client and “instruct” him/her to go ahead and “do” the steps! You still need to work with them regularly, and make sure they are ready to commit their time and energy to implementing what has been mutually agreed upon
  6. As with any plan, the process continues dynamically. This is the tracking/observing, feedback, review and update/correction cycle. Plans are not meant to be set in stone. They must evolve in reflection to consistent change. However, a good architect would not divert too much from the original vision and the blueprint.

The past is gone for all of us. The future is known to none of us. All we’ve got is the present moment. Planning, to a great extent, is a matter of trying to predict the future based on past experiences. It helps, but nothing is certain. That’s why it’s a good practice to keep risk planning in sight, and always have plan B within reach!

The Wealth Maker