Investment: On investment, active income streams is money put into something in order for it to grow exponentially. This will imply that your money will begin to work for you even while you sleep. Investments are not the exclusive preserve of the rich, as some people wrongly think. All that is required is for you to invest in something that appreciates, so you need to explore multiple possibilities and then settle on what you can invest in according to your capacity. You must always remember that the level of success achieved in building an active income will depend on your level of commitment. In the long run, it can create surplus income for you, depending on your decisions and actions. You can even decide to leave your job to focus on it, if it makes you more money than your job. A woman who was unfairly sacked from her job, fell back on her cold room business. Her productivity was doubled and now her ‘side hustle’ pays her richly.
Emergency fund: You are compulsorily required to save at least 5 per cent of your income in your emergency fund. This fund usually does not require active work. It is just kept for unforeseen challenges. The ‘up’s and down’s of life’ absolutely make it mandatory for everyone to have an emergency fund. Since you can’t tell what happens next, or what the future holds, an emergency fund will always serve as a buffer for unforeseen mishaps.
Benefits: The benefit of having a side hustle cannot be overemphasised because it is a sure path to securing financial freedom. It is intended to provide a cushion for you, should anything happen to your primary income source. It basically ensures that your earnings are stable without a huge gap between earning and spending.
In summary, all that is required of you is to figure out something you enjoy doing, and invest a concrete amount of time in it on a daily basis. You can decide to dedicate two hours of your time to doing what you love and get paid for it. More importantly however, do not immediately spend whatever profit you make. Invest that money into building that business or starting another one. Basically, you should not spend your profit, instead you should spend the profit you make from investing a profit you already made. That is a topic for another day. During a recent financial literacy training at a secondary school, the principal disclosed how he saved up for many years and invested his savings to develop houses as a retirement plan. His philosophy for life and retirement is summarised as thus: “If you don’t plan with your black hair, you will beg with your grey hair”. How apt! All the civil servants in Nigeria ought to learn from him.