We are living in a world where it is tough to get wealthy without having more than 1 stream of income. Most people thinks that it is least risky to get a full-time job, and slog for your company till you retire. But in fact, that is an extremely risky move! The current recession shows it: retrenchments are everywhere. There's no guarantees that you will be able to work till you retire at your current company.
Let me tell you a short story of my friend. He was working in Company A. Recently, he switched job (perhaps it seems like it has better prospects) and started working in Company B. One month after he started work (which is about 2 days ago), he received a letter of termination. He got retrenched due to company downsizing. Right now, he's busy sending out resumes and hoping someone will employ him, although not much hope is harboured given the current economic situation.
As conventional wisdom, risks can be spread out and reduced with diversification. Why not apply that same wisdom to our income streams as well?
For me, someone who was only 'enlightened' a few months back, this is my strategy:
- Full-time job
- Part-time tuition going to move to 'full-time' group tuition in the near future
- Dividend stocks like SPH and SingPost
- Blogs with adsense, in which I have now 2 blogs (including this)
- Fixed Deposits & Money Market Funds
- Just started with EmailCashPro as well
- On plans: Guide books to complement my tuition(1), (2), (3), (4) and (5) are being done already.
(6) was just started 2 days ago.
(7) popped out as an idea during tuition, when students ask many questions in which I can explain and answer in ways different from those found in textbooks.
As life moves on, I try to think if I can come out with any other income sources in which me as a fresh grad (graduated June 08) can embark upon. Do you as well?