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Saturday, May 9, 2009

The Importance of Planning

So I graduated university on the 3rd of May with a degree in Finance and I have secured a J.O.B with a large oil company aka (just over broke). I decided to take the summer off not purely for vacation, but to start planning but I will get into that later.

According to most people this would be a great start out of university especially with the global recession still kicking around.

So now what?

Should I just stick with the job and work 30-40 years and then retire? Or should I use the summer to plan how I will try to get multiple sources of income and then execute that plan So I don't have to rely on that single pay check for the rest of my life.

Now I could have easily just taken the summer off and be lazy, but that's not the best way to become financially free. The framework of my multiple sources of income plan which I have thought about includes 5 to 6 sources of income which will include:

1) Real Estate- Buying a property for myself while renting the room out. This will pay for my mortgage while I accumulate equity.

2) Stocks - I have recently invested some money into the markets due the fire sales and the bust that followed with this whole economic crisis. Now I just have to ride the wave upwards and then sell.

3) Drop Shipping- Starting a drop shipping business is a great way to earn some passive income while not taking on too much risk. It pretty much entails me opening an online store while having a manufacturer or wholesaler ship the products directly to the customers as they order. This will prevent me from purchasing initial inventory

Heres a chart that illustrates how it works
4) Affiliate Marketing - This essentially will allow me to gain passive income by referring products to other people via websites and essentially getting a commission on them. For example if I started a website that compares lap top computers to 5 or 6 different online stores. If a customer clicked on the one they preferred, it would redirect that person to the companies website. If they actually went through with the sale, then I would get a commission.

Here is a picture that illustrates the process

5) Monetizing a blog- I eventually plan on monetizing my blog once I get everything set up and acquire more traffic. This will allow me to get passive income.

So overall I will utilize my summer time and plan out each of the above and then execute them come September when I start work.

Its not going to be an easy road, but that's the challenge of becoming financially free. You have the opportunity to follow my journey through this blog and hopefully learn from my mistake and endeavors.

Until next time.


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