Being the breadwinner or a sole financial provider is not a choice especially in these hard and trying times.
As we start families of our own, the reality can be harsh: It feels nearly impossible to make ends meet on a single income or even with a double income. Thus, many providers get more jobs to be able to contribute more on the table. But working hard is not good enough, sometimes you need to work smarter than harder.
To be able to work smarter, you need to know more than your peers to be able to capitalize to the opportunities that come your way.
I discovered that there are 3 stages of Income Creation that I would like to share with you:
1. Man at Work
Basically, 90% of the population are in this stage. It is understandable because this is the usual first stage after studying.
No matter what job you have: a doctor, a salesman, a contractor, an engineer or even a judge. As long as you get paid for what you do, and you need that money, you basically, work for money.
Men work, get paid and pay the lifestyle they prefer. Nothing is wrong with this stage, but, staying in this stage could be tiring and demotivating.
You may be losing yourself in the process especially if are in the job you don’t really like doing.
Get to the second stage as soon as possible, to be able to live the life you desire without sacrificing your body and other things you love.
2. Money at Work
When you get into this stage, you are progressing a little bit. There are a lot of ways on how you can make your money work for you. Here are some:
- Investing your money in high yield investment and savings account.
- Investing in the stock market
- Choosing credit cards with rewards you can actually use
- Become an investor or a silent partner in a new business
- Investing in real estate (that appreciates in value)
- Rental Properties
- Investing in yourself and get higher education
Creating more of these can lead you to financial independence on your retirement but if you want to have that independence more quickly, the next stage may be the one you would prefer.
3. Other People’s Money at Work
When you get to this stage, you are really getting smarter and using what we call “Leveraging.”
This is what they also call (OPM) or Other People’s Money for your investments. It is looking beyond the limits of your own resources and finding sources of money elsewhere.
Let me share to you my story:
I have this business plan that I would like to start. Sadly, when I looked into my bank account, there is not much to start with. I told a friend of mine the business plan and the possible risk there is. Well, I was able to convince her and she invested and after a year, the money I borrowed gave her 200% return and me a 2x of her return because at the very start, I never touched my own money for that.
That’s when I learned I can use OPM to raise a capital.
It certainly burst my original belief that: YOU NEED MONEY TO MAKE MONEY. With that example, I only need CREATIVITY to make money.
Do you want to know how you can do this?
According to Robert Kiyosaki, lenders and investors simply want to know that they are going to get a healthy return on their investment (ROI). And the key to raising money comes down to 4 fairly simple factors that will help demonstrate the ROI they are seeking:
1. Project:
What is the project the lender is providing you capital for? What makes this opportunity unique and attractive? Don’t just share the positives—also explain the negatives and how you plan to overcome them.
2. Partners:
Who are the key players in the project? In other words, who’s putting the deal together and what is their track record? The experience each partner brings to the table, and thus their expertise, is a big part of the equation.
3. Financing:
Show the investor, as accurately as you can, how the project (either a business or investment) will make money. Be realistic and don’t avoid discussing the roadblocks ahead—every business and investment project has problems, so pretending yours won’t makes you look like an amateur.
4. Management:
Investors want to know who’s running the day-to-day operations, because this is crucial to the ongoing success of any venture. Explain who they are, their background, how they react under pressure, etc.
There are lot of lenders and investors available out there. They could be institutions, banks or individual who are willing to invest to your ideas.
Some people have concerns with high interest from these institutions, but let me tell you this, don’t focus only on the interest from the loan you are getting, focus also on the return. Since they are partners in the business you are building, I think they deserve a healthy ROI.
Always look at the side where in you both have a WIN-WIN situation.
You earn, they earn too.
But of course, be responsible, you don’t just get a loan without a very strong a business plan. Make sure that you get more from the deal.
Now, the only thing left for you to do is to deliver!
What business idea you have in mind that can speed up your chase to Financial Freedom? Comment and share this article to possible business partners.
For your Financial Health,
Read More:
- 5 Common Mistakes Doctors Make when Borrowing Money
- Doctors’ Loan: When To Borrow Money?
- Victim Mentality: Another Reason Why You Are Poor in spite of Hard work
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