By Gbenga Emiloju
- INTRODUCTION
In today’s dynamic economy, relying solely on a single income source can be risky. Economic fluctuations, job market changes, and unforeseen events can affect your primary income. Exploring multiple income streams can provide a safety net and enhance your financial security.
Multiple streams of income can offer greater financial flexibility, reduce dependence on a single source, and provide opportunities for wealth growth. By diversifying your income, you not only safeguard against potential financial setbacks but also open doors to new opportunities for financial success.
- UNDERSTANDING NIGERIA’S SOCIOECONOMIC REALITIES
Large informal economy (60% of the GDP)
Dependency on oil exportation (90% od export earning)
High inflation rate at 17%
Unemployment at 33%
Interest rate at 26.75%
Exchanges rates: 1USD=1,667, 1EUR=1,843, 1GBP=2,290
Price of petrol (from 180 to 1,000)
Infrastructure deficit ($3 Trillion is required within 3 decades)
Others:
Security Challenges, Weak institutions, Inequality and social injustice, Poor/bad leadership, Ethnic crisis, Corruption, Etc
III. IMPLICATIONS OF THE SOCIOECONOMIC REALITIES FOR AN AVERAGE NIGERIAN
Limited job opportunities
Low standard of living
Increased poverty and inequality
Reduced purchasing power
High cost of living
Increase crime and insecurity
Social unrest and protests
Stress and anxiety
Human right abuse
Migration and brain drain
- CONCEPTUAL CLARIFICATIONS
o Multiple Streams of Income: The practice of earning money from various sources rather than relying on a single income stream.
o Side Hustle: Side hustle is a secondary job or business that you do in addition to your primary career. Side hustle is job or occupation that brings in extra money beyond one’s regular job
o Financial Security: The state of having sufficient financial resources to cover expenses and maintain a comfortable lifestyle, both in the present and in the future.
- TYPES OF INCOME
- ACTIVE INCOME:
Earned Income: Wages, salaries, tips, and bonuses received for work performed.
Self-Employment Income: Income from freelance work, consulting, or running a small business.
Commission: Payments based on sales or performance metrics.
Hourly Wages: Earnings based on the hours worked.
Side Hustle: Job or occupation that brings in extra money beyond one’s regular job
- PASSIVE INCOME:
Rental Income: Money earned from leasing property or assets.
Interest: Income from savings accounts, bonds, or other interest-bearing accounts.
Royalties: Payments received for the ongoing use of your intellectual property (e.g., books, music, patents).
Affiliate Marketing: Earnings from promoting products or services online and earning a commission on sales.
- PORTFOLIO INCOME
Capital Gains: Profit from the sale of assets such as stocks, real estate, or businesses.
Dividends: Income from shares in companies, which may also be considered passive income.
Interest from Investments: Similar to interest income but specifically tied to investment vehicles like bonds or CDs
- WAYS TO WIDENING YOUR INCOME
- AN ENTREPRENEURIAL MINDSET: Cultivate and develop the mindset that solves problems by creating and adding value for making money
- INVESTMENT: Investing in assets that appreciate in value (e.g., Stocks, Bonds Real estate)
- RESOURCES MANAGEMENT: Cultivate the habit of judicious use of Money, Time, and Material resources.
- SKILLS: Capacity building through acquisition of meaningful, relevant, and saleable skills.
- TALENT: Discovery, development and management of gifts, talents and special abilities.
- ICT/SOCIAL MEDIA: ICT and Social media marketing is an excellent way to create brand awareness and reputation that lead to additional income and wealth creation
- SIDE HUSTLE: A well-chosen side hustle can provide the additional income you need to complement your regular job to make more money
VII. CONSIDER THE FOLLOWING BEFORE CHOOSING A SIDE HUSSLE:
What Skill Do You Have?
What Talent Do You Have?
What are You Passionate About?
What are Your Qualifications?
Which Environment Do You Reside?
Availability of Market Opportunity?
Does it complement Your Current Job?
What are Your Life/Career Projection?
What of Your Values and Priorities?
What is Your WHY?
VIII. STRATEGIES TO SUSTAIN MULTIPLE SOURCES OF INCOME
- BUDGETING: Understanding how to create and manage a budget to track income and expenses.
- SAVING: Knowing the importance of saving for short-term and long-term goals.
- RISK MANAGEMENT: Understanding how to manage financial risk through insurance and other means.
- FINANCIAL INTELLIGENCE: This is the ability to acquire and apply Financial management Knowledge and skills.
- LIFESTYLE: Live a moderate lifestyle and reduce debts to the barest minimum.
- HARDWORK: Always putting a lot of effort and care into work.
- CONSISTENCY: Set clear goals, create a routine, and stay disciplined. Keep track of your progress, seek support, and celebrate your wins.
- NETWORKING: Be intentional in cultivating and nurturing productive relationships
- IMPEDIMENTS TO FINANCIAL BREAKTHROUGH
Laziness: Lazy people don’t become financially free. Pro. 10:4-5
Fear of Failure: Fear of failure is the beginning of failure. Matt.25:25
Financial Illiteracy: Lack of financial knowledge hinders financial freedom. Hos. 4:6
Limiting Beliefs About Money: Wrong belief hinders financial breakthrough. 1Tim. 6:10 (Not money, but the love of money)
Financial Indiscipline: Financial reckless is detrimental to financial breakthrough. Luke 15:11-17
Wrong/Poor Investment Decisions: Poor/wrong investment decision can lead to bankruptcy
Mismanagement of Opportunities: Wastage and mismanagement of opportunities. Luke 15:11-32
Carelessness: Nonchalant attitudes and carefree life can cause financial losses and poverty
Stinginess: Hoarding God’s blessings can hinder the inflow of additional blessings. Pro.11:24-25
Excessive Borrowing: Excessive borrowing hinders financial emancipation. Pro. 22:7
- BENEFITS OF HAVING MULTIPLES INCOME
Enhanced Financial Security
Increased Savings
Investment Potential
Flexibility in Life Choices
Opportunities to Experiment
Protection Against Job Loss
Ability to Pursue Passion and Fulfill Purpose
Greater Security for Retirement
- CONCLUSION
Widening your income can significantly boost financial security and open doors to new growth opportunities. By setting clear objectives, staying updated on industry trends, ensuring compliance, and balancing personal wellbeing with professional demands, you can successfully cultivate and benefit from diverse income sources. This approach would not only enhances financial security but also provides pathways for long-term success and the fulfillment of our God-give purposes.
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