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Income Development

Banner Featured by my Financial Mentor Tim Kim

Streams of Income

Did you know that the average millionaire has 7 streams of income? The answer would be the more the merrier. Diversification is an essential component of every experienced investor. Take for example Tim Kim (read about streams of income here), a self-made millionaire and mentor of mine that I am learning from. He has over a dozen streams of income.

My streams of income

I currently have 4 streams of income including my 9-5. It’s a goal of mine to develop 2 of my income streams, which involves blogging and stock options, this year to a total of $3k/ month. I will keep you all posted on my endeavors.

Journeying to FI

It’s always been in my mind to be financially independent so that I could spend intentional time with my friends, travel the world and meet people from all walks of life, and adding value to everyone I meet. Initially I ran into people who had ulterior motives, which was a teaching lesson all on its own (click here to read more).  Then I met someone who had the level of success I was looking to achieve someday and he was an open book on how he got there. I started following his blog and am currently receiving mentorship from him. The spark and pursuit of this journey of FI was ignited just mid-last year.

Humble beginnings

When I started reading blogs on financial independence, I was really just getting through each month with few dollars to spare. I had a part-time job that was paying meager wages, but thankfully I enjoyed the work! I eventually obtained another job with much better pay, creating 2 streams of income but wasn’t making enough to invest.

Goal Setting

I decided to set my sights and goals higher and applied to full-time positions that would allow me room to invest. One of my goals was to get a full-time job by the end of the year. By God’s grace, I interviewed in December and started my full-time job in January 2018. Now it’s time for me to expand my income streams and develop them. I am currently settings a dream line (mentioned in Tim Ferris’s book 4 Hour work week) and hope to get started on defining what I will be doing each day to accomplish my financial goal.

Reflection

Currently, I am working full-time, working part-time at my church as a worship director (which is a great joy), taking 2 real estate classes, blogging, investing into a Roth IRA through Schwab, investing in Bitcoin/ Cryptocurrency (click here to read more), trading options through Robinhood, and advertising a Social Media Agency. I have room to grow in each of these areas and it is my goal to improve everyday. By the end of this year, I hope to reach 2k/month from blogging and share with you all my progress. Thanks for joining in on the journey!

*This post contains affiliate links.

 

Care to share?

Do you have interest in reaching financial in reaching financial independence? Where are you financially? What are your financial goals for this year?

 

Sources:

https://www.rothira.com/what-is-a-roth-ira

https://stewardingfinances.com/2018/03/14/live-and-learn/ ‎

https://stewardingfinances.com/wp-admin/post.php?post=47&action=edit

 

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LIVE and LEARN
Experiences, Finances, goals, making money, MLM, money, passive income, Retirement, rich, Savings, Uncategorized, wealth

LIVE and LEARN

Mistakes anyone?

Have you ever made a mistake and blamed yourself for it? Well, so have I. But I’ve thought what is the worst that can happen from me  We all make mistakes. However, the way in which we react will be revealing of who we are. Best option: Live and Learn.

Lessons Learned

Jumping into the work field after college was an arduous ordeal that consisted of misleading business propositions and some money mistakes; thankfully none that I deeply regret. I almost joined 2 different MLM (multi-level marketing) businesses, almost became a life insurance agent, and spent lots of my money eating out. For now, we’ll settle in on the first.

What is an MLM?

In order to understand what an MLM is, imagine a pyramid. At the very top of the pyramid, you have one individual, and that individual recruits someone else; they in turn recruit others, creating a pyramid-like structure. Those who are able to create a sustained group of people who will recruit others who will then recruit others and so on, will be successful in such a business.

My very first experience with an MLM was with a business that provides telecommunication services. A buddy of mine called me up and got me to sit down with him to hear a business proposition, which sounded incredible to say the least. The selling point is to legally  accomplish the things you’ve only dreamed of and the limitless ability to make money. I thought why not?

Invitation

My friend kindly offered to pick me up and take me to the place, which I gladly accepted. We parked in the parking structure of a Holiday Inn. We climbed up the stairs towards the meeting location and were greeted with booming EDM (electronic dance music) music, a flood of people and great chatter. It was a pumped up environment with lots of chatter and well-dressed people. There was a bit of adrenaline rushing through my system as I was taking in all that was happening.

The seminar soon began and there was some sort of chant that started as the mc for the evening came up and introduced himself. There was a lot of positivity and energy in the place. After 2 speakers who shared their story and how they reached their level of success: thousands of dollars in passive income every month.

The Allure

After the seminar was finished, a pretty Asian woman approached me; pitching me the business proposition with great persuasion. The constant flattery and words of motivation, if I’m to admit, felt good. My mind cycled through the words of the presenters as I took time to assess what they were selling.

Ultimately, I would be paying $500 for a website with a monthly payment to keep it running, mentorship, and invitation to events (which were several hundred dollars more). The way that I would really make money would be to recruit other people to join and take commission from what they were selling. This would be the way to financial freedom (more on financial freedom here)! The woman pressed me to make a decision saying how winners act fast. I decided not to be so quick to act and slept on it.

The next morning, I realized the business proposition was exciting and adventurous but not one I would pursue. I turned down the offer.

 

LIVE and LEARN

I can see how such an organization can be successful, but the chance of reaching the pinnacle of success within is extremely slim. I was willing to work hard, but the addition of pitching my friends and family at the costs of relationships wasn’t very appealing. In this business, you hustle, making sure that your downline (those who you have recruited) are motivated and engaged, maintain relationship with your upline (those who recruited you), and always look to add people to your team.

If you want to be successful in such a business, you have to overcome your fears of rejection (huge positive) and be willing to be extremely uncomfortable. More than selling products, growing your team will bring greater profits; which was one aspect of MLM that was questionable.

In the long run, there won’t be many MLM businesses that will continue for long. A good business should have well-thought principles and values at its core, with a strong vision to add value; along with planning, developing strategies for growth, and systematizing its processes. If an MLM provides this, it wouldn’t hurt to give the proposition a shot.

Take Aways

All in all, here are some positives: development of social skills, networking, great seminars, excellent book recommendations, and collaborations. These are very practical experiences that you can benefit from simply being involved to one capacity or another. I also know individuals who have found incredible success from such endeavors.

However, the cons are as follows: you will be pushed out of your comfort zone, challenged in the way you think and urged to conform to another standard of thinking, you may lose some friends and experience lots of rejection.

 

Have you been approached?

This is a small bit of my financial journey and how I almost made a big money mistake. Have you ever been asked to join an MLM? What sort of financial mistakes have you made?

 

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goals, money, passive income, rich, wealth

Foundations on FINANCIAL Literacy

What is Financial Literacy? Why should you care?

Let’s start with the idea of money. Money is a tool that is used to obtain something else. It is currently what majority of people use in order to go about their daily living: buying groceries, clothes, gas, rent, so on… That much is known to us all, but how we utilize it can affect our lives in drastic ways.

Money is a tool. It’s a tool that helps us buy what we need and want. Financial Literacy is simply knowledge that allows one to be a wise steward of their finances. Many of us were not taught Financial Literacy in our general education, therefore we lack understanding of even basic finances when we step out of college and into the world.

I, for one didn’t have someone to really teach me the importance of saving – and where to save – and spending wisely, until I discovered a blogger, Tim Kim. I started there by closely following blog posts, engaging in his posts, and buying recommended books to grow in my understanding of stewarding my finances. Then I decided to change my spending habits and work towards growing my money instead of simply getting by.

Do I want to continue in this lifestyle? Am I able to pursue my aspirations freely?     If money wasn’t a factor, what would I do with my life?

These are the questions I wrestled with. Eventually I decided that it was time to take action. I would work on replacing bad habits with healthy ones to guide me towards my goals. Ultimately, I am passionate about God and serving others. I want to spend most of my time investing into others, particularly young people, and guiding them to make informed decisions. I also feel deeply for orphans and widows; I want to help care for them in a greater capacity through financial means. To accomplish this, I need to start using the money I am allotted with more care and thought as the way I use it now will impact my ability to use it in the future. Developing financial literacy has already helped shape the direction in which I will go in order to obtain my initial goal of $10,000/ month in passive income by age 40.

I have been progressively widening my exposure in the finance blogging world and hope you can benefit from my journey. Please feel free to share your thoughts!

 

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