Multiple Sources of Income

The problem in Singapore’s school system is they do not teach financial literacy and entrepreneurship. In the past, it was about rote-learning, trained in a specific manner to gain employment in accordance to the demand and supply of the nation.

Why do we need Multiple Sources of Income?
Never place all your eggs in one basket and employment has shifted from iron rice bowl to present day contract work. Even though your contract with your employer is a permanent job basis, your work is good as your last. The harsh reality is for PMET (Professional Manager Executives and Technicians) to face a more challenging landscape to gain employment when their age hit 40 and beyond. Due to globalisation, you will be competing for jobs with the world. Jobs here today may become obsolete in a few years time.

Currently, most of the employers in my industry is shifting to Kuala Lumpur in Malaysia. This spells for disaster in a few years time. By then, I will be in my early 40 and maybe considered obsolete by others.

Instead of whining, I need to use my present income and resources to create other sources of income.

1st Source of Income – Investment
In my previous post, I have already mentioned from my portfolio, it will create two types of investment income. The first type is dividend income. The second type is capital gain income. This is on the basis that your stock price goes up and you can sell your shares for a higher value. I am still learning about investment, reading up on books and attending courses.

2nd Source of Income – Residential Rental Income
Rental Income can come from the extra room in your house which you can rent out for $600 per month or you can leverage on a second house and rent it out. There are a lot of factors to consider, extra stamp duties, rental income taxation, whether your rental income covers bank interest. Currently, the SIBOR is increasing and rental income is decreasing. I will look into this aspect 

3rd Source of Income – Internet Business
The biggest advantage of starting a business online is it’s incredibly cheap. It gains access to wide audience and create scalability in your business. This is a source of income which I am trying to understand and venture into.

4th Source of Income – Coaching/Consultation

Do you have an area of expertise? You can probably use your area of interest and expertise to provide coaching to an individual, to groom the person and help him to maximize his potential. You can provide consultation to a business and provide consultation services to help the business grow through marketing, lean in processes and set up systems to be efficient.

Conclusion

The above sources of income are brief introductions and there are many paths to Rome. The bottom line is time and tide waits for no man, many of my friends took the leap of faith and pursue their passion. I am still hanging on to my comfort zone which will soon cease.





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