The following seven steps will help you build your financial base
Step 1. List out all your income stream sources. Making money is an art. That is what you have been learning all your life. Money comes from several activities. These activities maybe paid employment, personal businesses, products, services, mineral ore, agricultural produce, name it.
To build your financial base, you need to state current income sources alone. Income sources are the activities you currently engage in which fetches you money no matter how small.
Let’s take the case of Mr. Ahmed for instance. Ahmed works in a government agency as an Admin. Officer where he earns monthly salary. He also has a farm where he rears cows, goats and produce other agricultural items and from where he earns money all year round. To help him in the farm business, he bought a Pick-up van and dug a borehole which he commercializes. His monthly income streams will look like the following.
Sources Of Income Stream
1. Salary from employment.
2. Herd of cows and goats.
3. Agricultural produce.
4. Sale of water.
5. Van delivery charges.
As an individual, you are encouraged to draw up your streams of income list. It is possible some of them may not be regular or stream income on monthly basis but never mind. In drawing up your list, you don’t need to include potential sources that have not started streaming money. Generate your list and move on to step 2.
Step 2. List out your earning from each income stream.
Let’s assume the financial earnings of Mr. Ahmed from all his economic activities and state them as example to guide you. He earns #400,000 a month as salary and other sources include revenue from his farm where he rears cows, goats and other agricultural produce, aside from the borehole and Pick-up van. His earnings in a month will be as follows:
Sources of income stream Amount (#)
1. Salary from employment 400.000.00
2. Herd of cows and goats 250,000.00
3. Agricultural produce 150,000.00
4. Sale of water 50,000.00
5. Van delivery charges 50,000.00
Annual income 10,800,000.00
Use the example above to draw up your own list. Did you see any element of surprise on your list? Usually, there are a few individuals who have only a single income stream. Just in case you are one of them, we shall explain in detail how you can build multiple income streams. Examine your list properly and ensure no error of omission or commission has been made before proceeding to step 3.
To be continued