We are introducing a new concept today: Swords & Shields! “Swords” are ways that you bring more income and money in, a good offense. “Shields” are a symbol of things that defend your money and wealth, a good defense. You have to use both well to build wealth. Here are 3 swords and 3 shields that you can use in your battle to build wealth:
Three Swords (Offense, bringing in income)
a. Side Gigs
Turn a side hobby, project or skill into an income stream. There are many ways to do this these days. In the year 2018 there even more ways than ever to connect with others that may need your skills or help. Focus on something you can do or a skill you can deploy that adds value to others. Perhaps you’re handy around the house, sign up to help people fix things that are broken at their house. Buy things at garage sales and re-sell online. Babysitting, Etsy creations, Fiver, Task Rabbit, musical performances, sell art, rent out a bedroom, rent out your car, etc.
b. Ask For a Raise
Seems too simple. I have been amazed in life how often one may receive what they desire by asking for it. people often undermine their own negotiation posture in life. This reminds me of a great quote, “life is a lease, negotiate well.” If you are applying yourself at work and adding value, let your supervisor know what you have brought to the enterprise and ask for a raise. You might be surprised by the outcome and it does not hurt to ask.
c. Dividend Stocks
I will admit it will take a lot of individual stock to generate significant income. A person can buy dividend producing stocks and simply collect the payment each quarter. Instant income and you did not have to do a thing.
Three Shields (Defending your assets)
a. Proper Asset Allocation
The stock market has been booming for many years now. You may need to be re-balanced into a proper mix of stocks and bonds for your situation. See a financial professional about the proper asset allocation for your situation.
b. Pay Down Debt
Now while everything is booming is the time to get your debt under control. When the next inevitable financial tumble comes along you are not left standing when the music stops.
c. Make a Budget
Make a budget. Understand what is coming in and what is going out each month. I bet this would lead to you realizing there are places that you could cut back without even feeling it.