“A successful man is one who can lay a firm foundation with the bricks others have thrown at him.” — David Brinkley, newscaster for NBC and ABC
Every person who reads anything about investing will come across quotes such as
“You need a diverse portfolio to be well protected against any down turns”
“You need a mix of shares and bonds to protect your investment”
Such statements seem obvious once you’ve read them. You don’t want to lose money so you need to make sure you have invested in a lot of companies or a fund that covers them. What people don’t realise is that by just applying it to their portfolio they are missing such a big safety net in life with not having a second way to make income.
When I was 24 I joined the army reserve, not just to do all the fun things like shooting at stuff, dawn attacks etc., but so I would also have a second way to make money. If anything happened in my day job I could fall back on the army to do work for them to tide me over. My safety net came on the back of the 2008 crash and I first entered the workforce after university in 2009. I left the Army reserve in June of 2018 after 8 years of service. Two years earlier I had founded my first company, a year earlier I had started matched betting. I replaced a source of income before I gave another one up. As The Escape Artist says you need to dig a well before you are thirsty.
Imagine for a moment you are a tight rope walker, the rope is your job, the height you are at is your expenses, the safety net size is your savings and how close to you it is the size of your emergency fund/investments. Some people will fall from their tight rope and land safely a couple of feet later on their large safety net, taking their time to reach up and get back on the rope. Some people will be able to jump between the two very easily and others will fall and never be able to get back up because the distance between the rope and the net is just too big. If you think it couldn’t happen to you just look at the amount of homeless people who were high flying executives once upon a time. Protect yourself before Yo Wreck yourself.
As they say in many drug rehabilitation programmes, the first step is to realise you have a problem. The next is to fix it. Just like in any diverse portfolio your income should come from multiple sources. It’s absolutely fine to have once main source of income such as your day job, but if you don’t have anything on the side you are playing a game chicken with the company you work for. The company will run you over when it has to. These are some of the money making ideas I currently have in my head, some I will try others I wont- Joinery
– Wooden garden furniture
– Computer services one man band- Create a blog for advertising
– Amazon FBA
– Landscaping company
– Affiliate marketing
– Brewing beer or another alcohol
– Taxi driver
– Weekend bar person
– Buying/renting property to rent out on Airbnb
– Labour market website
– Youtube vlogs
– Metal/wooden gates
All of these I could make work. Some more quickly than others and some I couldn’t do with a fulltime job. You can too.
I’ll leave you with a though hat has stuck with me since I was about 13.
If you fail to prepare you should be prepared to fail.