Print this page
Sunday, 03 January 2021 03:25

Developing Your Skill Set — Part 1. Featured

Written by
Rate this item
(0 votes)

After analysing our family expenses in 2018, my wife advised we cut down on our general spending habit. But after I analysed our expenses spreadsheet, it was clear there was no way I could cut down on our expenses because we weren’t overspending.

The solution was to increase the family net income. I know there are many ways you can increase your income, but you still need to research and know what will work for you. What works might be uncomfortable and not necessarily pleasant.

You have to be honest about what you want and take risks rather than lie to yourself and make excuses to perish in your comfort zone. We refused to stay in our comfort zone. We knew we needed to increase our income. We need to identify how this can be done. Already I have an idea in my mind. The idea I have requires me to develop and upgrade certain skill set. I need to create the time and capital to develop my skills. I see the development of my skills as an investment for the future. The plan I have is not a quick fix, it will take time, but in the end, it's worth it.

If you want extra income and you have no idea what to do, the best place to start is to do research. First, you must understand what an income is and how it will affect your tax and national insurance contributions. The type of investment you choose will also determine if you are to register as a sole trader or a limited company. No matter the nature of investment you decide to embark in, you will have to at least develop your skillset to meet the demands of the investment category.

While developing my skill set, I learnt a lot and saw other skills and certification I have that I have forgotten about because I was busy hustling, making end meet and eating from hand to mouth. Until you sit down to take inventory of yourself, you will not appreciate what you have. You need to list down all your blessings so you can name and count them one by one. Everything you need is already inside you. Don't wait for others to light your fire. You have your lighters.

When I took inventory of all my resources, I started rebranding two of my companies and made the necessary agreements that will support my vision for rebranding. I could see clearly. I know with the plan I have, it is not a quick fix, but a long term solution. I need to be focused and have a definiteness of purpose if I must succeed in my rebranding. I need the right tools and the right people. I need open-minded people who will be willing to give me their and expertise. I had to constantly encourage myself any time things seem not to work.

To create extra income, you need to know where you are coming from and where you are going to. You should be aware that the road is not going to be easy, it involves a process. It is not about the money, but understanding the process so that when it is time for harvest, then you are sure that harvest will never cease. You will continue to expand and generate more income.

What is income? Income is money (or some equivalent value) that an individual or business receives, usually in exchange for providing a good or service or through investing capital. Income is used to fund day-to-day expenditures. Individuals receive income through earning wages by working and also by making investments into financial assets such as stocks, bonds, and real estate.

Financial capital is any economic resource measured in terms of money used by entrepreneurs and businesses to buy what they need to make their products or to provide their services to the sector of the economy upon which their operation is based.

Capital can include funds held in deposit accounts, tangible machineries like production equipment, machinery, storage buildings, and more. Raw materials used in manufacturing are not considered capital.

To develop my skill set I need capital. When you develop your skillset you are investing in yourself. Investment does not yield overnight. You must be patient as you continue to invest to a point when you will start making profits.

Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. Cash flow can either be positive or negative. Positive cashflow means you have more money or access at hand. Negative cash flow shows you don’t have cash.

The following are common types of income:

Labour
A salary or wage that is paid in return for work. Wage refers to paid work or paid employment. It refers to the socioeconomic relationship between a worker and an employer in which the worker sells their labour power under a formal or informal employment contract.

Business Profits
The net income of a business that creates and captures value.

Tangible Assets
A tangible asset is a physical thing that has the potential to generate income, such as an apartment that can be rented.

Intangible Assets
An intangible asset is a non-physical thing that has the potential to generate income, such as copyright on a song that generates royalties.

Capital Gains
An investment that goes up in value and is then sold, resulting in a profit. For example, a stock that is sold at a higher price than its purchase price.

Dividends
Dividends paid by a company that you own or partially own. It represents a share of profits generated by value creation.

Interest
Loaning money to a government, bank, business or other entity in return for interest payments.

Rent-Seeking
Rent-seeking is the practice of seeking more income without creating more value or taking any risk. For example, an industry that lobbies the government to be paid a subsidy

Speculation
Risk-taking that doesn't create value, but seeks income by trying to predict price changes. For example, buying the stock of a company because you think the price will increase as opposed to thinking the company will generate profit.

Active Income
Income that results from the direct value creation such as your labour or business that you control. Assets that you directly control such as a rental proper are also active income.

Passive Income
Income that results from the processes that require no participation. For example, the interest income or dividends from a stock purchase. Passive income requires capital.

Unearned Income
Income that does not create value, but it is the result of social programs or obligations such as pensions, old age payments, unemployment benefits, alimony, and child support. In some cases, unearned income is not taxed. Note that in some cases, the government considers passive income, such as interest and dividends as unearned.

Now you understand the different types of income. A skill set is a combination of abilities, qualities and experiences you can apply to perform tasks well. These can include soft skills such as interpersonal skills, organisation, and leadership as well as technical skills such as research, computer programming, accounting writing and more.

133253 comments

  • Comment Link curry 5 Tuesday, 20 April 2021 02:36 posted by curry 5

    I have to convey my gratitude for your generosity for those people that really need guidance on in this theme. Your personal dedication to passing the message all around had become astonishingly helpful and have frequently enabled professionals like me to achieve their dreams. The insightful guidelines entails a whole lot a person like me and especially to my mates. Thank you; from each one of us.

  • Comment Link michael jordan shoes Tuesday, 20 April 2021 02:36 posted by michael jordan shoes

    I'm just writing to make you understand what a remarkable discovery my friend's girl went through studying your blog. She realized some things, with the inclusion of what it is like to possess a very effective giving style to make certain people with no trouble know precisely specific advanced matters. You truly did more than people's expected results. Many thanks for rendering such invaluable, healthy, informative and as well as unique thoughts on this topic to Emily.

  • Comment Link paul george shoes Tuesday, 20 April 2021 02:36 posted by paul george shoes

    I needed to put you this tiny note so as to give thanks again considering the awesome pointers you have shared on this website. It has been shockingly generous of people like you to deliver publicly all a number of people could have supplied for an electronic book in order to make some bucks for their own end, mostly considering the fact that you could have done it if you decided. The secrets as well acted to be a great way to realize that some people have similar keenness the same as my very own to see more and more with regards to this matter. I believe there are millions of more pleasurable opportunities ahead for those who start reading your site.

  • Comment Link curry 6 shoes Tuesday, 20 April 2021 02:36 posted by curry 6 shoes

    Thank you a lot for providing individuals with remarkably terrific chance to read in detail from here. It can be so lovely and as well , packed with fun for me personally and my office colleagues to search your site a minimum of thrice in a week to see the fresh guides you will have. And definitely, I'm just always motivated with the splendid tips you serve. Certain two points in this posting are rather the simplest we have all had.

  • Comment Link bape hoodie Tuesday, 20 April 2021 02:36 posted by bape hoodie

    Thank you a lot for providing individuals with a very wonderful opportunity to read from this site. It is usually very pleasant and full of a great time for me personally and my office mates to visit your web site at least 3 times weekly to learn the fresh stuff you have got. And definitely, we're actually fulfilled with all the attractive inspiring ideas you give. Some 2 areas in this post are particularly the most impressive we have ever had.

  • Comment Link yeezy supply Tuesday, 20 April 2021 02:36 posted by yeezy supply

    Thanks a lot for giving everyone an extraordinarily superb opportunity to read articles and blog posts from this site. It really is so terrific and jam-packed with fun for me personally and my office acquaintances to search your website no less than three times a week to learn the newest tips you have got. And of course, I'm also always astounded with the staggering things served by you. Selected 1 ideas in this article are in fact the most effective we have all had.

  • Comment Link yeezy sneakers Tuesday, 20 April 2021 02:36 posted by yeezy sneakers

    I precisely wished to say thanks yet again. I am not sure what I could possibly have made to happen without the hints discussed by you relating to such situation. Completely was a hard scenario for me, nevertheless taking note of a well-written form you treated it took me to cry for joy. Now i'm grateful for this assistance and as well , have high hopes you are aware of a powerful job that you are doing educating other individuals by way of your blog post. Most probably you haven't encountered any of us.

  • Comment Link kyrie 6 Tuesday, 20 April 2021 02:36 posted by kyrie 6

    I together with my guys ended up examining the great suggestions found on your website then instantly developed a terrible feeling I had not thanked the web blog owner for those techniques. The boys ended up certainly stimulated to learn them and have quite simply been enjoying them. Appreciate your being quite accommodating and then for deciding upon certain magnificent subject areas most people are really eager to know about. My personal honest apologies for not expressing gratitude to you sooner.

  • Comment Link ジバンシィ靴ブラントコピー代引き Monday, 19 April 2021 23:57 posted by ジバンシィ靴ブラントコピー代引き

    jordan 4 cavs 2012 http://www.realjordansorder.com
    E Scooter Rental https://www.onan-mk.com/e-scooter-rental/
    スーパーコピーブランドヴェルサーチ http://www.bmw-e60.eu/

  • Comment Link クロエバッグコピー品 Monday, 19 April 2021 21:10 posted by クロエバッグコピー品

    authentic louis vuitton discount http://www.pickyourbags.com
    china electric skateboard manufacturers https://www.motorow-tech.com/china-electric-skateboard-manufacturers/
    セリーヌサングラススーパーコピー激安 https://www.plos.at/