Alternate Source of Income

I recalled holding an intimate discussion with Participants during a recent Risk Management Workshop. Most Participants focused on current global economic challenges including recession, increased commodity prices, credit crunch and its impact on established multinationals. We merely focused on giants like AIG, ING, GM, Chrysler etc brought down on their knees in humiliation. However, none of the Participant raised the concern on the millions of salaried employees that were forced to take reduced salary, benefits, working days or worse - retrenchment.

Salaried employees are not familiar with risk management. Therefore it is not surprising that most salaried employees have only one source of income. In the face of economic challenges - salaried employees represent the most vulnerable group to suffer immediately on financial matter. This problem is critical if the salaried employee is the sole bread winner and compounded in the event he/she has no alternate source of income.

Risk management for salaried employees is not exclusively about economic circumstances. The income of a salaried employee is subject to numerous risks including changes in company business strategies, bosses, machineries, technologies, customers or even competitors. The critical question here underlines - what must a salaried employee implement to achieve prudent risk management and spread his/her exposure (or risk) to protect his income.

Prudent salaried employees with excellent risk management normally retain their job for their main source of income and indulge in other project for alternate source of income. They possessed the hindsight to actively seek project(s) to compliment and more importantly to protect their income. Some of this project turned up to be extremely successful generating more income than their existing job. In fact - many successful millionaires started out along this line.

There are several options available to achieve an alternate source of income. Common examples includes people working more than one (1) job, have a working spouse, investing in properties etc. Unfortunately most of these common options are not suitable or ideal due to our limited time, resources and experience.

What is an ideal project to generate alternate source of income. I am in opinion that an ideal project should have the following criteria:-

Does not take up too much of your time and capital
This project must be flexible enabling me to effectively manage my time and schedule. In addition, it should not incur excessive capital either.

Interest and Passion
This project must be interesting and passionate for me. This is to ensure that I am committed to develop this project plus have a good time doing it.

Income that grows with your age
This project must offer me an income that grows with my age. Ideally the formula should be, “The older I get, the more I earn and the less I work”.

The majority of the population is aware of the danger being exposed to the risk of having a single source of income. In addition, the majority of the population wants to establish a project to generate an alternate source of income. Unfortunately what we are aware and want is usually not translated into appropriate action to achieve the desired result. Human weaknesses lie in the FACT.

What is this FACT?

F Fear in failures
A Angry at oneself and the rest of the world
C Complacent
T Thinking in Reverse (negative thoughts)

To achieve the desired result – we must overcome FACT with FLEP. For example :-

FEAR = FAITH
ANGER = LOVE
COMPLACENT = EXPANSION
THINKING IN REVERSE = THINKING POSITIVE

FAITH in our heart and mind that we are the best and we are capable of achieving our dream. All achievements started as an intangible thought like a seed of a dream planted in our heart and mind. The subsequent tangible results are fed by faith.

LOVE that nurtures passion and commitment and help us overcome all barriers and challenges to achieve the desired result.

EXPANSION for all living things that are constantly growing and expanding. We seek to grow and expand in our life.

THINKING POSITIVE offers positive energies and thoughts attracting all the goodness from the universe into our world.