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.

135841 comments

  • Comment Link yeezy Saturday, 11 June 2022 04:27 posted by yeezy

    I wanted to create you the very small observation to say thank you yet again for the pleasing tactics you have shown on this site. This is so seriously open-handed with you to supply freely precisely what a number of people could have sold for an electronic book to make some money on their own, principally seeing that you could possibly have tried it if you ever considered necessary. These solutions additionally served to provide a good way to know that someone else have the same interest much like my personal own to understand a little more with respect to this issue. I'm certain there are many more pleasant instances in the future for many who scan through your site.

  • Comment Link supreme Saturday, 11 June 2022 04:22 posted by supreme

    I have to express some thanks to this writer for rescuing me from this particular challenge. Just after exploring throughout the search engines and finding tips which are not helpful, I figured my life was gone. Living devoid of the answers to the difficulties you've sorted out by way of your main post is a critical case, and ones which may have adversely damaged my career if I hadn't noticed your blog. Your main know-how and kindness in touching all the details was useful. I'm not sure what I would've done if I hadn't discovered such a subject like this. I'm able to at this time look forward to my future. Thank you so much for the impressive and amazing help. I will not be reluctant to recommend the blog to any individual who needs direction about this subject.

  • Comment Link nntmforb Saturday, 11 June 2022 04:20 posted by nntmforb

    how Long Before Cialis Is Effective?

  • Comment Link Trentcef Saturday, 11 June 2022 04:14 posted by Trentcef

    buy viagra kamagra online
    how do i get viagra pills
    buy cialis retail
    viagra pill for men and women
    viagra sale england

  • Comment Link Zakslems Saturday, 11 June 2022 04:14 posted by Zakslems

    propranolol 1 prozac 10 mg tablet price vardenafil 40mg budesonide 5mg viagra without prescription usa discount generic tadalafil clonidine topical gel anafranil for premature ejaculation augmentin brand ciprofloxacin in india

  • Comment Link lebron james shoes Saturday, 11 June 2022 03:59 posted by lebron james shoes

    I wanted to write a comment so as to thank you for the lovely strategies you are placing at this website. My time intensive internet look up has finally been honored with really good content to talk about with my friends and classmates. I would mention that most of us readers are extremely fortunate to be in a magnificent website with very many wonderful people with valuable hints. I feel pretty fortunate to have encountered your webpages and look forward to many more amazing moments reading here. Thanks again for all the details.

  • Comment Link ooweznqz Saturday, 11 June 2022 03:59 posted by ooweznqz

    erythromycin wiki http://erythromycin1m.com/#

  • Comment Link bape Saturday, 11 June 2022 03:58 posted by bape

    Thanks so much for providing individuals with such a spectacular opportunity to read critical reviews from this web site. It is usually very sweet plus jam-packed with a good time for me and my office friends to visit your blog the equivalent of 3 times per week to read the fresh tips you will have. Not to mention, we are always satisfied considering the wonderful ideas you serve. Some 2 ideas on this page are undeniably the very best I have had.

  • Comment Link ytymnuzf Saturday, 11 June 2022 03:55 posted by ytymnuzf

    how Much Cialis Can You Take Daily?

  • Comment Link Ashslems Saturday, 11 June 2022 03:53 posted by Ashslems

    cheap diflucan online cost of lyrica 150 mg prazosin online valtrex 500mg best price rx lopressor levitra 20mg cost

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.