Secondary Sources of Income

Importance of Secondary Sources of Income & VUCA (volatility, uncertainty, complexity, and ambiguity)

Creating multiple income streams or “profit centers” is one of the most common way that self-made millionaires religiously follow. Tom Corley, author of "Rich Habits", studied the habits of millionaires during a five-year study of the rich and poor and here is what he found in terms of their income streams:

     65% of self-made millionaires had three streams of income.

     45% of self-made millionaires had four streams of income.

     29% of self-made millionaires had five or more streams of income.

If you desire financial security and financial freedom in your life, then, creating at least one additional stream of income has become a necessity.

We are all living in a world of VUCA (volatility, uncertainty, complexity, and ambiguity). There is nothing permanent and situation changes within a fraction of second. You may be having a dream 9 to 5 job with 6 digit salary but there is no guarantee that this is permanent and the scenario may revert within no time. If you do not have a “Plan B”, you are sure to suffer. And what is this “Plan B”? It is the secondary source of income (that you should create well in time). The early you start, the better it is. 

Money & Its importance

Understanding Money & its Importance

 Economists define Money as anything that serves as a medium of exchange, a unit of accounting, and a store value.

However, a commoner like us defines it as a “necessity”. It is as important as food, water or air. Living without money is impossible and the things that it can do for you- is what makes it important.

Money gives you freedom and choices and you can live on your own terms. If you have good income/resources, you can sit on the steering wheel of your life and drive it according to your wish. However, if you have limited resources, money would become the “deciding factor” for everything in your life. Starting from the kind of clothes you wear, the school that your child studies in to the things that you can get for your family- all would be affected and you would feel like a puppet in the hands of destiny.

So, how do you earn money? Well one of the easiest way to earn money is to first and foremost get a stable job and this you can only achieve when you have good education. But the value of education does not end as soon as you get a job.  Rather, I would suggest you should use your education and your experience to create multiple streams of income- and this can only be achieved if you become a lifelong learner.