No one is immune to things going wrong in their life. If all your income is from one source, that is dangerous. If you get ill, do you have a plan B?
One thing we have learned and teach is to make sure you have different sources of income. We had all of our eggs in one basket and when that basket dropped, all the eggs smashed and then we had to re-build from scratch.
Most people with a traditional employed job, or even professional career, live up to their means. In other words there is relatively little spare cash at the end of the month. We teach that everyone should have at least six months money in a savings account, ready for a rainy day. You may need to re-think things slightly, but this at least gives you peace of mind for the future. Redundancy, law suits, sickness, anything can happen, even if you work for an organisation that has been around for hundreds of years (ie. Lehman Brothers).
This is not a negative thing, this is a positive thing. Be prepared for every eventuality. Face a rainy day, with a smile on your face, knowing your family is secure.
Once we’ve saved up our rainy day fund, let’s start putting money aside to buy income producing assets. We may need to start a small business on the side, to get some extra money to invest, but this could be the most fun thing you have ever done. Get your family’s buy in to your goals and you’ll be amazed how motivating this can be. If you have kids, make some sort of chart that they can tick off as you reach some targets.
How about starting with a small rental property? Maybe, you want to invest some money in the stock exchange and the dividends will pay you an income?
If you need to earn extra money, in order to save your rainy day fund, let’s think of a low cost start up. How about looking at a network marketing company? There are all sorts of different types of company which could suit you. The point is that they produce residual income, on going payment for one off effort, a bit like royalties on a song you have written. Then you can use some of the extra money you earn from this, to put into more income producing assets.
If you want to know more about this, why not book a strategy call today?