Success Strategies – Three Money Earning Strategies, Overview
Undoubtedly everyone wants to increase income. People are constantly searching to find new ways, or to improve existing ones. However, without seeing the big picture, it is very easy to get lost in one area while missing on opportunities in other areas.
Majority of people are stuck in income generating strategy in which they are not happy, which does not guarantee security and does not leave excess money for wealth building.
Money earning strategies can be defined in a variety of ways, depending who is doing classification. For example stock broker would talk about shares, commodities, CFD’s, currencies and different strategies used to trade. Financial adviser would look into blue chip investments, diversification etc. Bank manager would advise on short and long term deposits, savings options and so on.
All these are just derivatives of the three main income earning strategies:
1. Trading time to earn money:
As the name suggests, it is in fact trading time for money. It is an active relationship between employer and employee. Even if you own the business, if you have to show up for work, you are the employee of your own business. If on the other hand, you can leave your business, say for a year, and then come back to see it in good shape and operating, then you don’t belong to this category.
To qualify for this strategy, you have to posses either skills, knowledge or just plain energy. The more skilled or educated you are, the greater demand for your service will be, and accordingly you will be paid higher rate. The amount of money you can earn depends on the value and duration of the service you provide.
In summary, your income is limited to the length of the service you are providing.The only way to build wealth is to save money, that is, if there is anything left to be saved. This strategy is called by some as a “rat race” because it is like going in circle. No one ever got rich using this strategy alone.
2. Investing money to earn money:
This strategy is known since biblical times. It is a passive income generating strategy because your presence is not required. Your investment will do the hard work, while you do something else, perhaps something you like.The most popular are real estate and stock market investing, although there are other forms such as paintings, jewellery, antiques etc.
Investing can be subdivided into two subcategories:
a) Cash flow generating strategies such as day trading on stock market, rental income from real estate, short term deposits etc.
b) Growth strategies such as property investments, superannuation funds, buy and hold shares, long term deposits etc.
One important characteristic of investing is it’s leverage capability. You can get loans up to 95%, which means that for any invested amount your market exposure can be up to 20 times greater. This of course means that your profits are magnified, and so are the losses, so well structured management systems should be in place.
The only way to get out of the trading time for money strategy is to generate passive income on the side, and investment is a good starting point. There are variety of options to suit any start up budget. However, I would strongly suggest that no one should rely solely on professional investment advice. Do some research and study yourself. Internet has enabled us to access all sorts of learning and research tools, which can help us make right decision.
3. Leverage yourself to earn money:
This strategy is referred to as Multiple Sources of Income or MSI Technology.
Picture top world ranking tennis player. Appears that his primary source of income is tennis, which he absolutely loves. Then he has multimillion dollar property available for rent, then some shares. He has his private jet available for charter. He is paid by tennis racket manufacturer, and also by tennis shoes manufacturer. He is also paid for giving exclusive interview to a major sport magazine and so on. Get the picture, He has many sources of income, and all he does is play tennis and coming up with the ideas how to benefit from it.
You too can have many sources of income as well. You don’t have to be celebrity. You can just be yourself. You can have your daily job, a parcel of shares, a rental unit. You may sell something on e-Bay, maybe joined couple affiliate programs. So now you too have MSI, in fact five of them. Can you join couple more affiliate programs or can you sell on Amazon as well as on e-Bay. Of course you can, and you just added three more MSI’s.
MSI is not just another job, in fact it is not even a job. All you have to do is come up with an idea, or copy someone else’s idea and you have an MSI. Do not be too concern about competition. There are McDonalds, KFC and Hungry Jacks, in a food court of a big shopping mall doing just fine one next to the other.
Financial adviser will tell you do diversify your portfolio. Here you are creating sources of income across variety of products and services, accessible by millions of people, and Internet access is still growing around the world.
There is no need for special skills and knowledge, no special requirement and for some not even start up capital requirements.
All three strategies have it’s merits, and we as society need all three of them, but as individuals we have liberty to choose which strategy will dominate our lives. Insecurity, lack of time and financial freedom has forced people to search for alternative solutions. Investment strategy served the purpose well. However, education, awareness and lack of employment opportunities has forced people to come up with new ideas and new solutions, where MSI technology fits perfectly well. It is part of our life now, and is accessible by everyone who choose to improve quality of living.
To find out more about these strategies, visit http://www.mindandhappyness.com
