In Singapore, many of us have heard this phrase: You need to study hard, get into good school so you will have a good job in future!
We have seen locally and globally that the entrepreneurial spirit is getting stronger and stronger!
Many popular and quotable characters are filling up Facebook feeds with "mindset altering" quotes.
The issue I see is this: there isn't any practical way to start.
In the end, many do not see the whole way to completion and a very few succeed.
Start with WHY!
This is of course from Simon Sinek's very popular book Start with WHY.
However, it is up to you to formulate your own why.
WHY?
Because if your WHY brings value to people around you, you will be very rich.
Even if you are selling simple household items like handheld vacuum cleaners, you will get to buy expensive properties.
The WHY in your start up/business is very important. It cannot be just to be rich.
One of the most common motivation of my private clients is that they want to provide better living for their family.
Making money for yourself should come as a result of a successful business/investment endeavor.
How to Make More Money?
Money can only come into the picture after the WHY has been formulated.
For example, if you enjoy food and like to see people's happy faces eating your food, you decide to start a restaurant.
You have to charge people money if not your endeavor will end with your wallet going to zero.
There are many types around, but today, we will discuss how you are paid.
- Paid Hourly
- Paid Monthly
- Paid by Gigs
- Paid by Projects
- Paid Recurring-ly
- Paid Royalties
- Paid by Transactions
- Paid with Profit
Making it Rain money gif
1. Paid Hourly
We are very familiar with this, or rather, we have all gotten paid this way at some point in time.
This is most common for part time jobs.
When I started doing part time jobs, being paid $4/hour for waitering common. Now it is about $8-$10/hour.
This is technically trading time for money.
2. Paid Monthly
Most people you meet are paid on a monthly fixed pay.
Below is an interesting summary by M.O.M. that shows average pay based on age and education.
mom average salary
There is financial security in that sense. Salaried employees are mandated by Ministry of Manpower (M.O.M) to have certain employee benefits.
They include paid medical leave, paid leave, compassionate leave, etc.
Of course, in doing so, you are exchanging your 9-to-6 to help someone get paid in one other other ways below.
We are commonly taught in school to get paid in the above 2 choices.
Not that it is wrong, salaried employees can be paid highly and do not need to worry about money after retirement.
3. Paid by Gigs
The gig economy in Singapore have come into prominence with the rise of private hires firm like Grab/Uber (asian arm now merged into Grab)/Go-Jek, etc.
Other examples of jobs included in gig economies are courier services, food deliveries.
The concept is very simple: show up; carry out your service; get paid; move on to next.
It used to be Grab drivers can be very highly paid, but in exchange, the driver is very exposed to the risk of the roads.
Following below is how most business pay themselves.
While it seems like sky's the limit, business can also be bad and revenue could even be in the RED!
4. Paid by Projects
Some examples of project work include freelance graphic designer, interior designer, etc.
They are paid by undertaking long projects with certain deliverables or finished product.
The main difference with gig economy is that there isn't much emphasis on the show up factor, so long the work is done, it is paid.
Another defining difference is that you can undertake several projects at once.
Of course if you accept too much projects and nothing is done, you do not get paid the amount you desire.
5. Paid Recurring-ly
Being paid recurring income in these days often requires certain IT expertise.
For instance, MealPal is a subscription based food take-out service, mainly for lunch.
Basically, you pay a monthly amount (about $30), and MealPal will have its participating food stalls nearby your work place to make your lunch.
You show up at the food vendor the app allocate to you and you go collect your food. If offers quite a bit of convenience.
One subscription service I often use in my line of work is the Entertainer app.
Near the end of each year, I will purchase the subscription for next year.
The Entertainer app allows me to eat at its participating food merchants 1 for 1, usually for main course.
Yes, Netflix is also a form of business model that is paid recurring-ly.
6. Paid Royalties
Royalties are typically pointed towards artiste recorded works or even published works.
Singers get paid each time their song is being played on the radio. This is why famous singers always have a living estate, their songs are still receiving royalties.
Authors also receive money when their works are being sold. Although selling books can be considered paid by transactions.
Being a paid Youtube-r is also considered receiving royalties as you are being paid based on views.
I do have to say this, to earn royalties often requires talent.
Otherwise, you can also acquire means to receive royalties.
Peter Lim cannot play for Real Madrid, but each time Cristiano Ronaldo's images is used in adverts, Peter Lim is being paid.
7. Paid by Transactions
Selling items on Amazon, Qoo10 is one of the ways to be paid by transaction.
This is different from a brick and mortar shop in the sense that you do not have to be physically present to make the sale most of the time.
The easiest way to start a shop and do this is to use Carousell.
Upload photos of your items, type a few words to describe it, have a means to carry out transactions and you are golden.
8. Paid with Profits and Dividends
For point 4 to point 7, these 4 ways are how you can generate more income for yourself.
They rely on something that you offer to the market place.
Somehow, the other 7 points before this consumes time and effort or requires a certain skill.
This is where the proverbial "make your money work harder" actually comes true.
Investing money is one of the easiest things to do, it is only hard to choose what to invest in.
You can also get paid with profits or dividends by investing into good businesses as an angel investor or provide capital injection.
If you are like me, when I was starting out, I did not have enough financial resources to be a sleeping partner of a business or an angel investor.
So, the most low cost way inject capital into businesses and take part in its performance is to buy the stocks and shares of a listed company.
Or build an investment portfolio! I've helped private clients build one with a few easy steps. If you are keen, drop me a WhatsApp below.
Click on WhatsApp button above or reach me on this page for comprehensive insurance planning
Then, now WHAT?
In Start with WHY, the author asks us to start our endeavors with WHY, then build it up with HOW and deliver on the WHAT.
WHY drives your actions, it keeps you on track to your goals.
Even if your HOW may not be suitable, and if your why is strong, you can still find success.
From point 3 to point 8, these 5 ways are how one is able to generate more income for yourself, typically you may also do this while holding onto your day job.
Ideally, these will outperform your day job.
The common binding factor is that, you can create as many of these as you want AND GET PAID EVEN IN YOUR SLEEP!
It doesn't have to be singular. Meaning, a shop for instance, does not only have to sell one single item to make money. And you can have more than one shop.
You can also invest your money whilst doing the others as well.
Conclusion
Income is everything.
You need income to provide for your family, support your lifestyle, and old age.
Your income must consistently be more than your expenses if you want to save up.
Increasing your income also helps you to lead a more comfortable life.
Also, we mentioned a lot of companies name here and the various products and services they provide, this however, is not a sponsored article.
Here at TheAstuteParent, apart from being subject matter experts in maternity insurance, we also help people with their finance matters.
How to grow, manage, and protect your wealth is what we do best.
If you've been wondering what to do with your money instead of letting it sit in the bank, why not contact us to see what your options are.
I've helped private clients build one with a few easy steps. If you are keen, drop me a WhatsApp below.
Click on WhatsApp button above or reach me on this page for comprehensive insurance planning
This article is part of a series on a journey to a better retirement.
Check out the other articles here:
Start Your Retirement Planning at 40 & Forget About F.I.R.E.
Avoid retirement fantasies | Real sharing from retirees to help you!
Last updated on April 16th, 2020 at 05:00 pm