How to make money in modern times
You have followed us for long and known us for content that provokes deep thoughts and meditation. A number of people that reached out to our consultants for counselling of mentioned how our content always reached deep into their souls.
Now there are other things that could reach deep into you, like money , the need for a job, to start a business or family. You are part of this world and all its troubles. So we have decided to start touching on the other matters of life.
In this post we would like to share a post that one of our editors found on LinkedIn, written by Jeroen Kraaijenbrink.
Please relax and read through, feel free to find and follow him and his newsletters on LinkedIn. Now let’s dive in!
Making money is important. Not as an end, but as means. There are different ways to do so. Being aware of them helps seeing opportunities and making choices. What does your Personal Income Portfolio (PIP) look like?
We all need money. Not to possess, but to exchange for the things we need and like, or to help others. According to Kiyosaki’s “Cashflow Quadrant” there are four ways to do so: employee, self-employed, business owner and investor. I want to add a fifth: productization.
Employee – You have a job
The default and low-risk option that most people choose. Often not even consciously, but as a standard career step after school. While low in risk, from a financial perspective this model is limited as your salaries have to align with that of others in the organization and industry.
Self-employed – You own a job
Increasingly chosen by many coaches, consultants and other professions that allow you to work independently for customers. If you’re doing it right, it can generate significantly more money than as an employee, but with increased risk. The main limitation is time as there’s only so many hours you can work.
Business owner – You own a system and people work for you
You start a new business or take over an existing one. The main difference from the first two options is that others do the actual work while you manage and grow the business. Risk may be significantly higher and it may take time before you make a profit, but once and if so, the sky’s the limit.
Productize yourself — Turn your expertise into a product you sell
Yet another way to monetize your skills and expertise is turning them into some sort of product. This can be a book, an app, software, or any other type of product you can sell that does not require your involvement. The pros and cons are similar to being a business owner, although risks and returns may both be lower.
Investor – Money works for you
The most passive option. The first three require your time and attention. The fourth as well but less. This one does not, or barely. Instead of you, it is money that does the work for you. Risk-reward profiles will depend on what you invest in, but it has been a lucrative option for many. Main downside: you need some money first.
Of course, the five are not mutually exclusive. You can combine them and I bet that many of you are already combining some of them. Maybe not all, but more than one.
Personally, I started my career as an employee. After a while, this felt too limited and I moved to becoming self-employed. I still largely am, but over the past years, I’ve also added some products (my books), created a business (strategy.inc) and have started to invest. So, my current PIP covers four of the five ways, which has helped me both increase the volume of income as well as spread risks.
What does your Personal Income Portfolio look like?
Strategy and Leadership Consultant | Global Top 20 LinkedIn Creator | No-Nonsense Collaborator, Educator, Mentor and Author | Enabling Leaders to Improve Through Strategic Insight and Guided Execution |Strategy and Leadership Consultant | Global Top 20 LinkedIn Creator | No-Nonsense Collaborator, Educator, Mentor and Author | Enabling Leaders to Improve Through Strategic Insight and Guided Execution