In his book Cashflow Quadrants, Robert Kiyosaki talks about 4 kinds of people - Employee, Self-Employed, Business Owners and Investors. While Employees and Self-Employed people form the left side of the quadrants, Business Owners and Investors form the right side of the quadrants. Point of this book is that it is okay to start your life on the left side of the quadrants, but make sure when your life ends, you are on the right side of the quadrants. Most people also desire to rich, so they make a dive – straight from employee or self-employed to investor. Bad Move!
Most people who have a comfortable job, start investing in real estate. Everything is hunky dory. They spot a good deal, seal the deal, start making monthly payments, and hope to sell the property when prices go high. Sweet! Then they get laid off from work. Trouble begins. Can’t pay the bills, money is stuck in their real-estate property. Can’t afford to make mortgage payments for real-estate property. I know what you are thinking, it won’t happen to me. So did a lot of other people whose houses are being foreclosed.
What does the Employee or Self-Employed person need to do? They need to create a supplemental income, a secondary income which they control. Not their boss. So, if something happens to their job, they can still afford to pay bills and make mortgage payments on the house. It takes worry off your head. You can still invest, but without much worries now. You don’t worry much if you lose money on the deal. Treat it like a learning experience. But, if all your money was stuck in investment and it turned out to be sour deal, you could have been in a depression.
So, look for a way to create a secondary source of income. Even if you don’t plan to invest, it will help you incase you lose a job. Always keep you eyes open for opportunities. There are plenty.
Hope this helped. Looking forward to reading your comments.
Respectfully,
Mayur
Tags: Investing, Secondary Income
