It’s a good thing to have one source of income, but it is an even better thing to have several streams of income. Having multiple streams of income will add to the current quality of life the Ndalamas may enjoy now and their quality of life well into their retirement. The logic behind it is that the more Pemphero and Mercy earn now, the more disposable income they will have available to invest and secure their retirement. Ultimately, their increased level of investments will contribute to a far more comfortable and enjoyable retirement.
There’s a distinct difference between saving and investing. In layman’s terms, saving is putting away money so that you may spend it later, whilst investing is the act of saving with the objective of making a return, or some kind of profit.
Creating additional income could mean either generating income immediately to boost your savings or making investments that will generate income in the future. With the right guidance, one can create investments now that will generate income, such as dividend income from shares, rental income, interest income on bonds, and proceeds from insurance policies, which are excellent passive income vehicles for the Ndalamas to invest their funds. On the other hand, you are encouraged to create a business venture to boost your current savings and future disposable income.
Make mistakes and learn from them before it is too late
“A smart man makes a mistake, learns from it, and never makes that mistake again.” – Roy H. Williams
During the retirement planning seminars, Mr. Lipunga said that an enjoyable retirement should be the main driving force to pay meaningful consideration to what may seem like a boring task–the process of making enough now to live comfortably later.
You should not wait until you retire to start a business or make investments to bring in income. You may not have time or resources to recover from the mistake. If you are to think back to a mistake you once made, the feelings you may instinctively have are regret and the need to make amends. Nonetheless, the lesson you will gain from that retrospect will guide you the next time you are in a similar situation.
The Ndalamas are advised to try out numerous options for making an extra income now, when they have more time. Time gives the Ndalamas ample wiggle room to make mistakes, learn from them, and start again without posing any catastrophic consequences to their finances.
Common reasons why people often do not follow through with diversifying income include time and information limitations, which may be true for many, but that is also where NICO Asset Managers can optimize this process for you.
To boil everything down, let us assume Pemphero decides to start a minibus business. His neighbor recommends two bus drivers who run his two minibuses. He later finds out that his drivers possessed fake licenses and were arrested by the police; his vehicles were impounded. Pemphero has to pay several fines to rectify the situation. The lesson here is that Pemphero will make sure he obtains all the necessary information before hiring another driver for his business.
NICO Asset Managers is prepared to guide its clients on how best to plan for retirement, make financial investments and provide advice on each and every client’s unique financial goals. A meticulously planned strategy will be necessary to avoid costly and unnecessary mistakes as you experiment with various ways to earn extra money.
These investments will assist the Ndalamas in creating extra income that will enable them to live a more comfortable life during retirement. Next week, we will look at the importance of paying down debt before retirement. Visit NICO Asset Managers and find out just what they can do for you.
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