Who doesn’t want to multiply his income? Everyone wishes to get rich and have sufficient money to pay off debts, save for retirement, achieve financial independence and many more.
While there are several ways to grow money, there is surely no way to take a shortcut to grow money. Most of the tasks require learning, understanding and implementing in the right manner to both manage time as well as money. Multiply your income by multiplying your revenue streams and at the same time manage time to maintain both.
The most important factor here is to have the “mindset” to earn more and get more. Be hungry as ever. What is the amount of time you are willing to dedicate in a day towards increasing your earnings and what is the value addition you are providing to your job?
Ever thought of why does the CEO of a company gets paid more than the accountant while both may put the same amount of hours in a day. It is because of the power of leverage. The CEO leverages the entire workforce which in turn multiplies the number of hours in a day while the accountant gets paid only for his hard work. It is the same reason why the CXOs and the VPs get paid more than the rest, because they leverage the rest and multiply their work.
It is the same way how the income structure works. If you wish to multiply your income then you need to know how to create more leverage. So one of the ways of increasing your income is to look beyond your job and start building a business or growing your investment portfolio to build a healthy balance sheet for yourself. If you think about it, there are people who earn much more than the CEO and they leverage everyone including the CEO. They are the business owners.
By growing your own business, you are starting out both as the CEO and the business owner at the same time. You are building a business that can leverage other people’s money and time to produce results much bigger than you could ever do it alone. On the other side, you make take back a part of the same money and reinvest in real estate or the stock market to gain leverage.
Naming few of the ways to increase your income,
a. Sustainable business – Start out on a venture with a sustainable model. If you are not sure of your plan, discuss several times with your family, friends and peer and foresee your business projections before you invest in it. If you unable to find an idea, start attending trade shows and startup ventures where you may fund or buy out an equity of one of the most promising start ups and in a way be a share holder in the business
b. Invest in real estate – Understand the real estates prices, their fluctuations, their reasons of fluctuations, their probability of producing better yields in which geography in the future. A good investment in real estate is likely to produce steady returns in the future supplementing the existing income. However, real estate causes a huge capital investment and hence there are crowdfunding projects which enable one to invest in real estate at a fraction of a cost.
Few of these site include, Fundrise, PeerStreet, RealtyShares or RealtyMogul where you may pool in your investment along with others and remain invested at a very lesser cost.
c. Invest in Stock Markets – This needs a bit of study on understanding the stock markets, company performances and forecasted data for estimating the stock price movement as any wrong move would result in deep financial losses. As it is said higher the risk, higher the returns making the right investment in stocks will surely add to multiplication of income by leaps and bounds.
d. Rent a spare room - Check out the advertisements in AirBnB, Hostels and OYO for renting out your free space and gaining an extra mile on it. An average AirBnB host is supposed to make around 1000$ per month. While there maybe few expenses as cleaning and maintaining the house, you would still gain profit than let your space remain vacant.
e. P2P Lending – Check out sites such as LendingClub where you may lend your money and gain an interest on it. You may wish to diversify your investment portfolio into P2P lending and can fund them in increments as low as 25$. LendingClub usually offers returns between 4% to 8% for investors but this depends on how well you spread your risk and realise the risk of default to be always there.
f. Strategic Investments – Invest in mutual funds, bonds and other such tax saving instruments available in your country to save on your income tax and enjoy rebates. As each penny saved is a penny gained, tax saved via diversified investment is in a way multiplying your income.
g. Practising Hobbies – There are places such as Qodro and Urbanpro where you can create a page for yourself stating your hobbies that you want to teach others. This can vary from music to sports to even particular subjects in academics which you can teach during your free time or after office hours to supplement your income.
The statement ends where it shows that there are two kinds of people in the world, those that are being leveraged and those that are creating leverage. It depends on you which one you want to be.