At Investollo, we keep contemplating our future and making it better. We have tried to figure out ways that can make us wealthier and live a comfortable life in the future. We realised there are so many ways that one can generate wealth and live a comfortable life. People often lack the direction and ideas and here we are to give a list.
- Understand Financial Literacy
Understanding economics and the world of business is super important before you embark on the journey of generating wealth. You need to know what makes successful businesses tick, you’ll know what to do with money.
If somebody gives you $5 Million, do you know what to do with it? You should. Learn about investments, businesses, business models, economy, economic policy and stock markets. Get to a point of learning where you can have a conversation about it.
- Get good at what you do
One of the simplest ways to increase your income is to get better at your day job. Train yourself and add a repertoire of skills to your skillset. Speak to people in your industry and network generously. You’ll need to hit a point where you aren’t dependent on your job, but you get opportunities to freelance as a consultant. This does two things, it improves your earning potential and it gives you more time.
Here is how you should transition from a day job to a consultant/freelancer
- Improve your Linkedin Page and add your contacts. Write a killer linkedin profile, with your experience and all of your achievements. If you don’t have any, don’t sweat it.
- Go to seminars and speak to one or two people and add them to your Linkedin. This is a great way to build up your contact list.
- Setup a website with your credentials and information and put useful and interesting content out with a clear call to action on how people can get in touch
- Start writing interesting articles on Linkedin and share them across all your channels.
- Start doing small training sessions with two or three people for free and hone your skills. This also helps in putting your brand name out there.
- Offer to work for free for a few companies to get some freelance experience
When you do this, you immediately increase your income opportunities and also you can make more by the hour. The value of your time just increased.
Also read: How to become an Financial Influencer and Make Money in Singapore
- Invest in an array of assets
Save the money you make and put it to work. Here is how I would break it down
- Have some cash saved for at least 6 months of your living expense in case shit hits the fan
- Put money into stocks and go long term. Look out for dividend paying stocks. Don’t trade if you don’t have too much money to play with. Build your portfolio.
- Put your money into safe investments like Bonds and Debt, so your capital is safe and it grows steadily
- Put your money in market funds and monitor it carefully
- Find a good stock advisor – Not the mainstream guys, but the independent ones. And put your money to work with them.
- Invest in young money making businesses
True wealth is generated only when you have a percent in a business that is going to grow 10 to 20 fold. Put yourself in a place where you can meet and interact entrepreneurs who are starting companies.
Show your value to them and what you can do for them in return for equity. It’s not enough if you only have money to put it, you’ll need to be valuable.
Remember this guy – Sherpalo – Sherpalo works with only a few outstanding teams each year, in order to devote the time, energy and resources required to guide a fledgling company to the summit of business success.
- Look out for Side Projects and Businesses
There are many opportunities for creating money making businesses. A few examples are – I can’t believe I’m saying this. A blog. Yeah. A blog can actually earn you a decent side income. You will need a strategy and a person to run it.
Renting out properties on Airbnb is also another option. This has become common and also can be automated by hiring a person. There’s a bucket full of these side income ideas that you can venture into.
One of the most important things you need to look out for in a side project is
- It should be a money making business
- It should be considerably easier to scale
- It shouldn’t require a massive team when it scales
- It should be capable of running with a few team members
Side projects are really for increasing your income potential so you can invest more of your money.
- Always live below your means
A lot of people start changing their lifestyle when they start making more money. They start buying expensive cars, build unmaintainable houses, hire maids and more. You should always look to keep a simple lifestyle. It’s your saving mentality that will keep you sharp with your investments.
Actual wealth isn’t too far away for a lot of people. It isn’t luck or about being in the right place at the right time. If you want to hit the billion dollar level of wealth you might need luck along the way. But to generate wealth to the tune of millions, you need to be focused on building your skillsets and diversifying your investments and portoflio considerably.
Don’t rely on earning money through only one channel. Have multiple channels of earning money. The sooner you stop working for time, the faster you are to making wealth. If you stop working, it doesn’t mean you stop making money.
Building wealth has a lot to do with mindset, you need the right attitude. You cannot be risk averse and expect to make wealth. There are a lot of skills and street smarts you need and spotting of opportunities also lead to generating wealth.
Once you are in this path, it is the most liberating experience of your life. Wealth in the truest form is freedom. Freedom from the drudgery of the routine life, drudgery from bad ideas. It gives you the opportunity to pursue your creative pursuits.