Sufiyan Abas

Full time accountant pursuing the ACCA. Just wanna share with people on how I manage my finances. I don’t know if you would find it useful but if you have any better ideas or would like to share on how you manage your finances, please let me know because I believe that we could help young adults manage their finances.

 

 

Everybody wants to get rich quickly or make easy money. Well, there’s no such thing. However, if you’re willing to work at it, you can make some extra dough on the side. Let me tell you about my experience on how I made some extra money.

Sources of Income

Let’s start first with the two different types of income:

Primary income – your day to day job where you get paid a salary

Alternative income – money you earn which is not from your day to day job

Another thing to note is the Types of Income:

Active Income – this means that you are WORKING for the money (job)

Passive Income – this means money is working for YOU (investments)

Alternative income is important as it will be extra cash for you create your Passive Income. Through your Passive income is where you will find what everyone is looking for which is FINANCIAL FREEDOM. 

Most people think that having just a career would be enough to sustain a comfortable life. I do agree that having a career is important but it’s too risky to rely solely on one source of income. What happens if you lose your job? Your income disappears.

So that’s where your alternative income comes into play. Like i said before, there is no short cut to it. You’re gonna have to put in the time and effort to build your alternative income streams. But how do you start?

There are 5 key factors in order for you to build a successful income stream: 

1. Passion – do what you love

2. Expertise – do what you’re good at

3. Patience – it’s gonna take awhile

4. Variety – have different ideas on how to make things work

5. Commitment – you can’t do things half heartedly

It took awhile but what I did was start with things I knew and enjoyed. I enjoyed handling money and teaching people about money. So I started a consultancy business. This way I spent a lot of my time doing what I was already doing for my new business. After getting the hang of it, I took some time to create a proper business plan. After having everything documented and actually seeing the viability of the business on paper, all I had to do was implement and execute. Look, businesses don’t always work and and sometimes it’ll fail miserably, but you need to be persistent in your efforts and have courage and confidence in what you’re doing. If you believe in yourself, others will believe in you. Also remember to always learn and improve! Everything that happens is a learning curve in your life. Write that down.

Anyways, that’s my experience on how I created my alternative income. And from your alternative income, you can start paying off debt, save and invest, buy a new income stream or start an emergency fund. All of this would contribute to your Passive income ! But remember to work hard, commit to it and don’t quit your day job!

 Have a look at https://sufiyanabas.wordpress.com for more inspiring matters on life.

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