I decided it was time to write a piece on the various ways to stockpile income.
Those of you in the 29-38 age bracket fondly remember the importance our high school teachers and guidance counselors placed on getting an education.
Get a degree.
Get a job.
BOOM! American dream fulfilled.
But as adults we know this step is merely the beginning.
The art of making money can seem so ambiguous.
That, and as my wife pointed out to me, once you do start to uncover all the ways to make money, the options can seem so overwhelming.
Well, Inner Reign is here to simplify the thought process for you, so that you can maximize your prime earning years as best you can.
Let’s start with the graphic below:
This graphic outlines the eight major categories of passive and portfolio types of income.
Of these eight, Earned, Profit, Dividend, Rental, and Capital Gains are the most common wealth builders.
Let’s look at another graphic:
This outlines the best chances at attaining millionaire status:
Highly Paid Executives (Earned Income)
Real Estate Moguls (Rental/Capital Gains)
Stock Market Investors (Dividend/Capital Gains)
Business Owners (Profit Income)
Let’s examine these sections a little further, to shape the proper mindset for wealth accumulation.
This is the method of income we are most accustomed to.
Revenue earned by the trading of hours through a job being performed.
This is the beginning, and sadly the end, for most people when it comes to making money.
Find a good paying job and hope you don’t get fired.
Earned Income is designed to be the gateway to all the other forms of revenue listed above.
It’s shouldn’t be your end all be all, it should be the beginning to more revenue streams.
The important thing to note here is choosing your career path carefully.
I listen to Colin Cowherd a lot on FS1, and I love the real-life anecdotes to sports talk.
The NFL has higher demand at certain positions than others.
So, when a player not in those high demand position wants more money, Cowherd comes back to the same premise.
“You made a choice.”
The first two years of undergrad I was majoring in Physical Education, because I wanted to coach and work with kids.
Nothing wrong with that at all.
But the more I thought about it, and did my research, I decided to switch to Accounting halfway through.
The Accounting/Auditing/Risk Management discipline always had significantly higher demand and higher pay scale.
I made the move and I couldn’t have been happier.
Find a company willing to invest in your development
Individuals who not only select positions of high demand but hone their craft, have the disposable income to enter other endeavors.
Being highly skilled in areas of high demand makes you the commodity.
From working 9-5s to owning your own business.
According to the Global Entrepreneurship Monitor (GEM), more than 25 Million Americans are starting or running new businesses.
The basic premise here is the offering of a product or service that consumers see value in.
It’s best to find an emerging market.
If you’re trying to break into an established market. Make sure you are entering a sector with demand and a differentiating factor.
That’s right. Do a SWOT Analysis.
The Stock Market.
There are only so many hours in the day to work, so why not let your money work for you.
I understand that not everyone has the capital to have a high-risk tolerance, so start small.
I implore you to research an investment product that is right for you.
If for nothing else than to get some practice.
There are many investment platforms that now have no commission fees, no cost to execute trades.
Heck some platforms have paperMoney environments to carry out strategies.
Many analysts recommend investing in an index fund that mirrors the S&P 500.
There are platforms such as Acorns or Stash that have ETFs that give you a taste of investing as well.
This was just within 3-4 months time. . .
Dividends are the periodic payouts companies give to stakeholders invested in the company.
Reinvest the dividends and watch your asset grow.
Rental Income/Capital Gains
I had an acquaintance at my old company that lived with a friend for free in San Francisco.
The incomes are higher there, but so is the cost of living.
Her plan was to save the money that she would have been spending on rent, on a rental property in a budding area in the south.
A great tactic to not only pay her monthly payment, but also allow for some passive income.
That added with the property growing in value, and it’s a win-win-win.
Being a landlord is no fun, but there are property management services willing to handle those responsibilities.
Always remember that Earned Income is merely the beginning of your journey to becoming High Value.
Sharpen your skills within your craft and making yourself as marketable as possible.
From there, just pick your poison.
Those who amass wealth are those were willing to take risks.
Plan accordingly. Then execute.
Weather Your Storm, Maintain Inner Reign -E