Personal Finance and Investing

Man has evolved from the humble background of a gatherer of food, from the early ages, through the rennaisance period and finally the industrial revolution, that ushered in the era of working in factories for paid rates. The industrial era ushered in an era, where men began to work for salaries, hence a departure from the former norm, where man was essentially an entrepreneur.

But, as we progress through different economic clime, it became very difficult for man to sustain his self from the wages earned from paid employment. It therefore, became neccessary that man embrace the concept of multiple stream of income.

Multiple stream of income means, earning income from two or more stream. the reason why it is becoming more difficult to depend on one stream of income is that, the living expenses and needs of man are becoming more complex as we evolved. Our daily nature and habits demands that we spend money everyday, and for an employee, he is paid either on hourly basis, weekly, forthnightly or monthly. It therefore becomes difficult to build wealth on the residue left after tax deduction.

In creating multiple stream of income, an individual knowledge of personal finance is very vital. An understanding of the difference, between ASSET and LIABILITIES, NEEDS and WANTS is very essential. It is also important that an individual have a knowledge of how to calculate their NETWORTH.

Armed with this knowledge, an individual can then can then embarked on the journey of building their networth and paying all understanding debts like mortgages, credit cards and consumer related debts. After these, then the individual can now start developing streams of income.

There are different channels, through which an individual can develop multiple stream of income. Based on the flexibility of the current job, an individual can pick another employment where he can earn extra income. An individual can equally invest in a money market fund or mutual fund to generate interest, dividend from a portfolio of stocks can also generate extra income. Income could also be generated on investment in real estate, this can be done on weekends. The ultimate money generating machine is for the individual to work in a home business either on or off line.

With the above strategies in place, it is easy to generate multiple stream of income in your life, to guarantee sustenance and eventually, financial freedom.

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