PERSONAL FINANCIAL PLANNING 2013 [PART TWO]

SOURCES OF EARNING INCOME

•      There are several sources of earning such as salaries, rent, interest, dividends, etc.

•      There are basically two types of income:

1. Earned Income: Salary
2. Passive Income: Real Estate, Rent and Capital Appreciation, Royalties, Businesses run by others, Stocks, bonds, mutual funds.

Employee’s Primary Income

•      Reviewed salary–a new financial empowerment

•      Monthly salary.

•      Annual Bonuses

•      Promotion differentials.

•      Loan schemes, Advances, Housing Allowances, Personal Loans etc.

•      Estacode, training allowances, per diem.

•      Share of profits, share of dividend etc

Employee’s Other Streams of Income

•      Interest from fixed deposits or savings accounts.

•      Dividend from stocks and shares.

•      Rental income (from flats, houses, market stalls and shops etc.)

•      Land and Buildings (buying and selling).

•      Angel capital (investing in small businesses).

•      Farming/Poultry/Fish Farming.

•      Trading Joint Venture (JV)

•      Importation (JV) amongst others.

•      Bonus shares from existing holdings.

Creating Multiple Streams of Income

•      Start today to develop many sources of income.

•      Leverage on core talent, skill, job or business. Get organised!

•      Diversify one stream, or use income from one to create others

•      Never jeopardize your employment i.e. your core stream of income

•      Use /leverage services of professionals/others to develop multiple streams,  e.g. stock brokers, estate agents, friends etc.

•      Get involved in the up-coming Fidelity Co-operative Society.

•      Choose your multiple streams development partners very carefully. Persons who are serious/like minded with integrity.

•      Get started, no matter how small. From little acorns really big oak trees grow.

Becoming a Landlord

•      Choose your area of interest 

•      Do your search – Legal Dept. will assist

•      Funding – Outright, installment or counterpart funding (i.e. two people paying for a plot of land jointly)

•      Start gradually – monthly, quarterly etc. Remember little drops of water make a mighty ocean.

•      Be focused and determined – You will get there!

Summary Rules of Acquiring Money

1. Pay yourself first
2. Control your expenditure
3. Invest your money where it will labour for you and increase your wealth
4. Invest wisely – where it is safe and consult with wise men
5. Own thy home – it reduces your cost of living and makes available more of your earnings for the gratification of your needs
6. Ensure a future income – provide for your future retirement