Financial Freedom Nigeria

Financial Freedom

Understanding Income Streams


Every day, every one prays and then steps out to make money, because ultimately we want to enjoy life, drive the best cars, live in a great house, have a decent family and more. But these things do not come on a platter of gold. Neither do they happen by sticking to a job or never striving to move beyond your current stage in life.

First of all, it takes courage to step out of the fear that binds you to make money in a country filled with opportunities. Because truly, some do not see these opportunities. Others do clearly see them but are afraid to make the move because of fear of failure. But then, you need to know that nobody ever got wealthy by a job. You clearly have to have other streams of income if you must be financially free, or seek to make any real financial difference in your pocket and life. Sadly, people still believe working hard in someone’s organisation will make them rich. Of course if you are lucky and kiss the right arses, you may climb the ladder but you certainly won’t make a fortune. If you put in all your life and work for your organisation, you really just get paid the same amount for the great productivity you have made. But if you put in that energy in something else that truly matters to you, and give it the same level of devotion you give your current job, chances are that you will make more money and be on your way to financial freedom. It is an established fact that obtaining income from multiple streams increases your reward and can multiply your disposable income. So if you start off small, which obviously requires your time and effort, you might not make much money immediately. But with consistency, dedication and determination, you will eventually get the reward of venturing out and seeking additional income.

The point is, in order to increase or augment your current income from your job, create financial stability and make long term wealth for yourself and your family, you must adopt other streams of income aside from your primary source of income, ‘side hustle’. The principle of creating multiple streams include income from your primary source of employment, active passive income which consist of your business income, investments and savings for an emergency fund in order to be prepared for rainy days and emergencies such as illnesses, or death.

Primary income: If you have a job, your salary is your primary source of income. To secure financial freedom, your goal is to build upon the income you receive from your job. Basically, your salary is like your seed and it is not only intended to be spent on meeting your personal and family obligations. It is to serve and provide the needed seed to grow your financial freedom. For instance, we met a civil servant, Mr. Emeka, who saved up enough to start a block making factory. Now, he employs seven people whom he has empowered. This business has given him financial freedom- he is now able to live out his dreams of sending his kids to decent schools, and saving up for the future.

Active Income streams: Simply put, an active income stream is a trade of work for money, and it often requires a ‘seed capital’ for you to begin. This is something many people usually do not have access to. You must deliberately ensure that you make more money than you spend. A good place to start a business in order to generate additional cash flow, is your home. Your focus could be in something you love and enjoy such as painting, sewing, graphics, etc. From there, you will need to begin to inform people of your creations, and incite them not to hesitate to give you a call whenever these creations are desired. If you enjoy cooking you can begin by offering your friends some of your delicacies for a fee. If you dedicate two hours daily and include your weekends, it will amaze you just how much of a difference this will make in helping you build an active stream of income.

( to be continued)

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