Tag: influence (page 1 of 3)

Building Wealth: How to Access the 7 Types of Income

When it came to money and building wealth, I was lied to as a child.

I have a feeling you were too.

I remember sitting at my dad’s house in Benin City after concluding my NYSC, staring at my laptop with a rough draft of my cv, wondering what career path I was going to start and commit to for the rest of my life.

They had told me that graduating with good honors and getting a job was the fastest path to making money and being comfortable. This was not totally false, but it was not the full truth either. I only discovered this as time goes on.

There is more than one type of income

Getting a job is just one type of income. There are five more types of getting paid.

I want to show you what to focus on so you don’t get trapped in 9 to 5 called salary. Either as an employee or business owner.

I want to show you the six types of income so you can diversify your revenue streams and build a more robust financial foundation.

When King Solomon said, “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”. This was probably what he was talking about…

Building Wealth: The Seven Types of Income

Building Wealth: The Seven Types of Income

  1. Earned Income:

This is the most common type of income and comes from employment. It includes wages, salaries, bonuses, and tips earned from working.

HOW TO GET THIS INCOME: This is the most straightforward. Get a job. Look for part-time or full-time employment in your field of interest.

If your desired job is not forthcoming, Learn a skill and freelance. Or gain experience by working as an intern.

  1. Profit Income:

This is income generated from buying and selling goods and services. It’s the profit made after subtracting the costs of running a business from the revenue earned.

HOW TO GET THIS INCOME: Start a small business. Buy something. Sell the same thing with a profit margin. This can be online or offline.

You can also sell your services or expertise as a business. We have discussed this before – Productize yourself.

  1. Interest Income:

This is the money you earn on your savings. It’s the interest paid by banks or other institutions on money you deposit in accounts or lend out.

HOW TO GET THIS INCOME: Stop leaving all your money in your bank account. The interest rate in bank accounts is currently too low.

Open a fixed deposit account. Open a mutual fund account. Let these accounts be your main savings account. Your normal bank account should only be for your daily expenses.

  1. Dividend Income:

This is the money you earn from owning shares of stock in a company. Dividends are a portion of a company’s profits that are distributed to shareholders.

HOW TO GET THIS INCOME: Invest in stocks that pay dividends. Research companies with a history of paying dividends and consider your risk tolerance. There are apps that give you access to these companies with ease.

Tech companies pay dividends. Nigerian banks pay dividends. Just learn to open your eyes, my friend.

Start with small amounts and gradually build your portfolio.

  1. Capital Gains Income:

This is the profit you make from selling an asset, such as a stock, investment property, or collectible, for more than you paid for it. Assets are the things that you own that put money in your pocket, whether you work or not.

HOW TO GET THIS INCOME: Understand and pay attention to your sources of profit income, interest income and dividend income. Then this type of income will come easily to you.

This income simply comes from the appreciation of your investments.

  1. Rental income:

This is the income you earn from renting out a property, such as an apartment, house, or commercial space.

HOW TO GET THIS INCOME: Consider house hacking, where you rent out a room or basement in your residence while living there yourself. You’ll need to check local regulations for legality.

In the future, you can also look into renting out a property you own.

  1. Royalty Income:

This is the money you earn from allowing someone else to use your intellectual property, such as a patent, copyright, or trademark.

HOW TO GET THIS INCOME: This is a longer-term goal. If you’re creative, focus on developing content (e.g., music, books, inventions) that you can copyright or patent. Royalties come from licensing your work for others to use.

You can also create digital content like videos, online courses, or blogs that can generate ongoing revenue through licensing or ad revenue.

Building Wealth: The Seven Types of Income

Building Wealth: The Seven Types of Income

My Experience in building income streams (and a list of avenues I use)

I started earning income by getting a job (earned income) at a financial services company. My work experience further exposed me to interest income where I learned to save with apps like Vbank, Piggyvest and my personal favorite – SEEDs by Anchoria.

Capital gains and dividend income became a part of my income stream when I finally understood Bamboo and Risevest (these are mobile apps to buy US stocks and save in dollars). Then, I have gained Profit income during the sales of my books. This also came with royalty income when I learned how to sell and publish books on Amazon.

I have never earned anything from rental income but it’s something I will definitely try later.

Trust Yourself First when Building Wealth

What works for me might not work for you.

That’s why building wealth and life itself is so fascinating. I have friends who built businesses (profit income) and it is their major source of income.

There are also friends who ventured into cryptocurrencies (capital gains income) and it became the hill they are willing to die on.

The options are limitless, my friend.

Do your research. Gain knowledge. Acquire skills. Keep building on what you already have.

And that’s how you start generating multiple streams of income, contributing to your financial independence and long-term wealth building.

You Must Have No Enemies

No Enemies

No Enemies

You must have no enemies to succeed. If you feel left behind in life, pay attention to this story.

In 2023, MAPPA released the masterpiece “Vinland Saga Season 2”. This show tells the story of Thorfinn, a young Viking warrior who killed his longtime enemy, Askeladd to avenge his father’s death.

When Thorfinn eventually kills Askeladd, he loses his purpose in life. He turns from a mighty warrior to a slave with a broken spirit working for a farmer.

However, as the years go by, He works alongside Einar, another slave, and the two develop a strong friendship.

Thorfinn slowly discovers purpose through hardwork and starts to consider a more peaceful existence.

The truth Discovered by Thorfinn

You see, during his enslavement, Thorfinn realizes a harrowing truth: the mile-long road of men he’s slaughtered in pursuit of avenging his father’s death led to his undoing.

With this truth, the once-fearsome Viking warrior chooses a new purpose: rid the world of war and slavery.

When you think his tale is going to end well, the past comes to haunt Thorfinn.

An all-out war breaks in the remaining parts of Europe and the new king decides to attack the farmland where Thorfinn stays.

Thorfinn’s new philosophy is put into test when he comes to face to face with the new king and his army.

The Quest for no Enemies

War for Vikings serves as a testing ground where victors reap the spoils on the merit of how many people they slaughtered and sold. Or vie for a warrior’s death that would grant them entry into Valhalla – the promised land.

Thorfinn then realizes that his initial brutal and revenge seeking lifestyle has been caused by a series of tactical errors.

I’ll come back to tactical errors in a bit.

While contemplating on how to convince his enemies to stop this war, he remembers the words of his father who had embraced a life of peace:

“You have no enemies. No one in the world is your enemy. There is no one you need to hurt.’

Think on the above line for a while.

When its meaning is clear, then continue reading.

Now let’s talk about tactical errors.

Tactical errors

In football, a tactical error is when a manager makes a mistake without external pressure.

It’s a mistake that happens when the team’s strategy itself is flawed or players don’t execute it properly.

Can you imagine being at the top of your league, yet your mistakes keep costing you the trophy.

The best managers in the world have suffered this.

Carlo Ancelotti, Pep Guardiola, and Mikel Arteta are known for their consistency and discipline. But they have all made tactical errors that cost them trophies.

In the 2005 Champions League Final, Ancelotti’s Milan were up 3-0 at halftime but made errors that allowed Liverpool to come back and win.

In the 2021 UEFA Champions League Final, Guardiola played without a natural defensive midfielder. This was widely seen as a tactical error. Chelsea won the match 1-0, exploiting the gaps in City’s midfield.

Just this weekend, in the 2023/2024 Premier League final run, Arteta made a tactical formation error in a decisive match against Aston Villa and lost the game. This gave Manchester City the chance to go on top of the table and eventually win the Premier League.

While I don’t know what went through the minds of these managers in those moments – the leading cause of these errors is ego and flexibility. Some managers are overly wedded to their tactical philosophies and struggle to adapt during the game, even if the initial approach isn’t working.

Beware of your tactical Errors

Now look back at some of your tactical errors in the past few months.

Those moments when your ego caught up with you, preventing you from doing your best – not because you lacked the abilities, connections, or resources to pull it off.

The moments you tried to hide your talent from the public because of resurfaced rejections from the past.

Those moments you refuse to share your ideas because you don’t want to go the extra mile and be held accountable.

I can totally relate…. It’s difficult to reflect on, but dodging problems is a game for babies.

I need you to go to your battlefield and confront the enemies in front of you.

You will still win in life, my guy.

You are the deserving favorite and have spent your entire life preparing for this premier league title. But you must end the mental battle.

These are the different endings to those movies you keep seeing over and over in your head. That heart break, that wasted chance, the absence of a parent.

The conversations you can’t stop having in your head with your ‘village people’. But you eventually found your voice long after you realized you stay in the city?

Do you get the gist?

You can’t bring all this extra luggage around with you in the end game.

Yes, we are all not immune, but raising awareness is the first step.

Focus on what truly matters.

Tell yourself – “You have no enemies. There is no one you need to hurt.”

And then do your utmost best.

 

Buckle Up: Everything is Just a Skill Issue

Till now I still dread the term – Buckle up because I have always been a creative at heart.

I loved the thought of creating something from scratch, putting it up for display, people come to buy what I create and I don’t have to worry about money.

Naturally, as a child I learnt to draw cartoon characters and write essays and short stories. As I got older, I studied things like graphic design, content writing and photography.

Although I learned a lot from these things, they never really helped me financially.

More specifically, I wanted to do my own thing but was unable to monetize my creativity.

It’s not because I was not skilled enough, it’s because I didn’t stack other skills that would allow me to make money and experience freedom. I was just a man-child who wanted to watch anime and read books for a living while expecting that my money problems solved themselves miraculously.

I will talk about my full story in a subsequent article, but for now, just know that this approach did not work out.

I had to swallow a pride and get a job.

But there is a profound lesson I learned which is still valuable today:

Lesson: Anything and everything can be learned.

Buckle Up: Everything is a Skill Issue

Buckle Up: Everything is a Skill Issue

Everything is a skill Issue

Buckle up is often used as an interjection or exclamation to infer that an event is about to be exciting, unexpected, dangerous or even troubling. In real time, it simply meant – Things are about to get serious.

As time goes on, I am realizing that a person’s life changes when they realize everything is a skill.

The goal you currently strive for is just a couple of skills you must learn and build.

Discipline is a skill.

Patience is a skill.

Being funny is a skill.

Socializing is a skill.

Making Money is a skill.

Saving money is a skill.

Being good at anything is a skill.

Everything now depends on your skillset.

What are Skills?

A skill is your ability to do something well.

I love how wild_stoic puts it – “Skills are not magical words that you either do or don’t have. They are things that you build through repetition.” This makes it simple to understand because repetition leads to Mastery.

And mastery leads to the fulfillment of your goal.

How to Turn Anything to a Skill You Can Master

This framework is in 3 steps:

Step 1: Break it into Chunks and Daily Tasks:

Chunking is a phenomenon where a task is split into smaller units for easy doing.

To begin chunking, ask yourself:

  1. What is the smallest single element of this skill that I can master?
  2. What other chunks link to that chunk?

Practice one chunk by itself until you’ve mastered it. Then connect more chunks, one by one, exactly as you would combine letters to form a word. Then combine those chunks into still bigger chunks. And so on.

Go a step further by creating a daily action.

Which daily task would you need to complete in order to make noticeable, progressive progress in your selected skill?

Step 2: Execute with 30 for 30 or with Deep Work.

I learned this execution step from Sahil Bloom (He is a great guy you can check out as well):

a. 30-for-30: Do the daily task for 30 minutes per day for 30 straight days. 30 days is meaningful enough as a commitment that you can’t be half-in, but 30 minutes is short enough that you can convince yourself to take it on. 900 minutes of effort in a single month is enough to create tangible progress that will keep you pushing forward. This is my favored approach for getting started on any new area of progress.

b. Deep Work: Deep work means carving out 1-2 blocks of time per day when you will enter a deeply focused state to make progress against your area of choice. These blocks are generally 1-2 hours for most people and should be completed without distraction. This is the favored strategy for big professional goals.

Sahil also recommends that you start with 30-for-30 and then transition to Deep Work after a few months if you feel motivated and energized to go harder.

Step 3:  Teach Others What You are Learning.

The ultimate test of your knowledge is your capacity to transfer it to another.

You can use the Feynman Technique to buckle up when seeing everything as a skill issue. The Feynman Technique is a simple and popular way of teaching others while developing mastery over your newly acquired skill.  There are four steps to his method.

  1. Teach your skill in its simplest form.
  2. Identify gaps in your explanation. Go back to the source material to better understand it.
  3. Organize and simplify your information.
  4. Transmit and Transfer till the other person understands it.

But remember, do before you teach or share with others.

It Only Gets Better From Here On

When you see things from this angle, I strongly believe you can do anything you want if you practice it enough. You no longer have an excuse not to do anything.

Infact, you can do everything.

I hope this makes sense. Again, buckle up and see everything as a skill issue.