Few weeks back, I did up an excel spreadsheet trying to project the amount of money I will have if I keep my current job and consistently practicing my saving and investment habits I have for the past 2 years.
At 40% savings rate of my income, 5% growth rate per annum, I would have accumulated $339,599.97
At 40% savings rate of my income, 8% growth rate per annum, I would have accumulated $381,931.99
To a 21-year old, this is probably quite a big sum of money given the fact that I started from zero, slowly working my way up to achieve this. But is this enough for me?
When I was a child, I knew nuts about money except that I have to save up for every big ticket item I purchase such as a booster pack of game cards or that I have to work part-time during holidays to earn more extra cash.
But I realise there is a limit to these actions I make.
How much can I possibly save if I have only $1,000. How about $10,000? Savings rate matter but the base at which the savings rate is multiplied by also matters!
How much time do I possibly have to exchange with money? Everyone only has 24hrs. Even if I work for 16hrs at $15 per hr, I would only have 16 x $15 x 20 working days a month, every month AND a very exhausted body. It is not worth spending that amount of time to earn that money.
I knew I needed to think of ways to increase my sources of cash flows, create multiple income streams to generate more cash flow. I searched the internet and realise that I can actually start trying some of the successful methods that other like-minded people has employed and start generating more passive income!
- Affiliate marketing
- Forex Trading
- Publishing and Selling Ebooks on Amazon
- Creating an interesting product and selling in it on various platforms – e.g. a card game / Wallet Ninja
Sounds easy? But these are ways that people spend years working on and eventually they become good at it and started to be profitable. The question now is…which one actually suits me the best and which one will I continue focusing my mind on trying to make it work?
My aim eventually is to use these multiple streams of income to supplement my main job and invest it to generate more returns. So one hand, I’ll focus on generating high returns with my investment portfolio. On the other hand, i’ll figure how consistently increasing my investment injections, given the time limits, salary limits and whatever limits that are capping my earning ability.