How to 3X your income?

Is your income enough for you and your family?

In most cases, the answer is NO.

A large population in India has low income which insufficient to take care of basic necessities, upgrade their lifestyle and ensure future security. Especially middle class people are mostly affected class and their struggle is continuing till end of the life that must be stopped.

Is income not enough or something else?

We can see this in two prospects…

• One is that you feel your income is too low to take care of present liabilities and to live a comfortable future life.
• Another prospect is that the cost of living is higher or in other words, affordability is low, hence the monthly income looks insufficient.

Both are the same thing which shows that you need more income to make your present and future life comfortable.

Now think if you have one income and you get two more such incomes, then can you live life comfortably?

If your can make your income three times of your present income then you can easily take care of present liabilities, can upgrade your lifestyle and can save for future security.

If you get two more incomes, where each income is equal to the first income. Then your income gets triple.

Let’s understand with an example….

Consider your take-home salary is 1.5 Lakhs per month and you are getting Rs 1.5 Lakhs from second income source and Rs 1.5 Lakhs from third income source. Now your total income isRs 4.5 Lakhs per month. It looks sufficient to live life comfortable and you can save for future security too.

How are presently people working on their income?

In India, especially middle-class people have accepted this struggling life cycle where just to make a sustainable and good lifestyle, people are working for money from age 18 till 60 and even further years. A very small percentage of the total population is able to achieve it before end of life.

Many of them are making best efforts to come out from this cycle and are focusing on making money either by speculation like the share market or doing something like business or earning by other means and they want to achieve it quickly. Few are succeeding but many of them are loosing all their saved money and many are struggling with huge loan liabilities.

The people who are earning a good amount of money, are spending to upgrade their lifestyle, purchasing luxury goods, expensive holidays and such expenses. Even after earning more, the struggle to earn money continues.

These all they are doing with one income source and not thinking beyond how they can triple their income.

How to 3X your income?

Before understanding how you can triple your income, first you should understand how people generally build their first income source.

If you look closely, to get a first income one should spend a long time to building it. Like, to get an income stream, one should complete education which takes around 18 years, starting with preschool education of 3 years, grade 1 to 12, around 12 years and graduation of 3 years. After 18 years of hard work, people are getting a normal job.

It means, building a single source of income will take time around 15-18 years.So if you want to build two more sources of income, you should work for longer time around 15-18 years then all three sources can generate income equal to first income.

What are those three income sources?

These three monthly income sources by which you can multiply your monthly income three times are….

1. Income from a Job or business (First main Source)
2. Income from Investments (Second Source)
3. Income from side hustle or multiple side businesses (Third Source)

1. Income from a Job or business

The first main income source is very important as this gives suitability. Other than that, by this first source,you can create a parallel one more monthly income source i.e. by your savings and investments. Try to increase this main source of income as much as possible because this will help to increase the second source of monthly income at faster pace. You must ensure few things for faster growth of first main income source.

• Learn skills of your profession.
• Upgrade your education & knowledge.
• Try to get promotions as early in your job.
• Try to upgrade your pay structure.

Thorough focus on your first main source of income will largely help you to build a second source of income at a faster pace.

2. Income from Investments

Every earning person has some savings& investments that generates some fixed income per month. You can calculate how much income per month your investments are generating. This will be your second source of monthly income.

Initially,this monthly income will be very low as you have smaller corpus amount and few investments. The more you save from your first main source of income, the income per month from investments will slowly start increase. During course of time, it will gradually start picking up as your savings and interest from investment both will increase monthly income from investment at faster pace.After 10 years, it grows faster and after 15 years, it will increase miraculously.

Simultaneously, your first main source of income also increases during course of time which helps to increase corpus amount at faster pace and which also indirectly enhances income per month from investments if you do continuous investments since the beginning.

So we must understand that earning money is one part, but another most important part is how to handle money efficiently. Both can create miracle to build your significant second source of income and future security well before age 45.

For this, one should start creating a second source of income from earning age. If you are late too then also you can achieve by available corpus and higher earnings.  In later age, the higher salary structure will help to recover your missed period.

3. Income from side hustle or multiple businesses

This income is very important as by this income you may bring fulfillment in life. Starting from your earning age, you should start making up your mind in such a way that this third income source should be from your likeable profession or hobby which will create significant monthly income and same time while doing the work you should enjoy and can create time freedom in your life specially after age 45 or maximum by age 50.

This third income should be from your hobby/ skill/ knowledge/ consultation or any such work which will give you satisfaction in life and at the same time gives you a significant income and time freedom after age 45.

So from your earning age or whatever age you are in, you start working to build such work where you can enjoy most and same time it will generate third source of income too.

If someone is having higher level of income, then one stream of income is enough which can build second source of income too. But in India, a very minor percentage of the people are lucky to fall into the higher income bracket.

How to make these three income sources efficient?

As we know, to get a first income one should spend a long time building it. After getting the first source of income, one should make every effort to boost the first income source. During the course of time, the first income source grows at a pace that again depends upon hard work and learning skills.

The same is applicable to two other sources of income i.e. Income from Investments & Income from side hustle or multiple side businesses. If you give time around 15-20 years to these two other income streams then at one point in time every source of income will start generating equal amount of income.

So to make efficient income from two other sources, one should work from an early age and work on it for at least 10-15 years, then only it will reach at a level where the three income sources will generate significant income. This helps to create your financial security at an early age. 

Let’s understand with an Example….

We have seen in one of the blog posts, how Mr. Murali has created all three sources of income before age 45. I take same example.

Mr. Murli has completed his education at the age of 22. He got a job opportunity with a starting salary of 25k per month. Since the beginning, he has been saving from his salary and has been investing which has started giving some monthly income from his investments. During his college days, he had good communication skills and was good in academics which he identified once he start earning and started doing education counseling. Slowly, he has started charging nominally for his counseling.

Now in the present time, his main source of income which is a job is creating the main income stream and others are just stated giving some income which is very little as compared to the first main income source.

Now after 13 years his age is 35 and his salary is around 1.25 lakhs. Since he has been doing investment and working on counseling from last 13 years so his other two sources are generating incomes of around 50-60k per month from each source.

In the next 10 years, during his age 35 to 45, he was in senior positions, hence he was able to save good sum of amount every month while living a good lifestyle. At age 45, his salary is Rs 3 Lakhs per month and he is earning Rs 1.5 lakhs Rs from investments and around Rs 2 Lakhs per month from education counseling. Altogether, he is generating Rs 6.5 Lakhs per month from all three streams of income. Their investments and side hustle are now generating more monthly income compared to their main source of income.  This has happened as he worked 23 years on saving & investing and education counseling.

This all has given him the power to decide what he wanted to do after age 45.

He has decided that he will continue to help society with education & career counseling with the intention to help youth. Money earning has become his second priority as he is getting a good monthly income from the investments and also from education & career counseling. Every year, his corpus and monthly income are growing as he is managing all expenses by counseling. More importantly, this work gives fulfillment & satisfaction in life and at the same time he has time freedom too.

This is one of the examples, of how three income sources can do a miracle in life and make your life comfortable and can increase happiness while making financial ease in life and time freedom.  

At one point in time, these income streams comfortably take care of all four major liabilities i.e. dream house, Kids education, medical security and future security.

How to start working on these two other sources of Income?

Second source of Income – From investments

1. To start working on two other sources of income you must have first main source of income from which you should get money every month.
2. Put all the details of your money and investments in a Microsoft Excel sheet or in a Pre-designed Excel “Investment Tracker” to know how much total corpus amount is available with you.
3. Now you calculate how much income per month your individual investment is generating and how much income per month all your investments are generating. This you can calculate in Microsoft Excel by dividing the total interest amount received after the maturity period by the duration of the investment in months. You can do this without calculation in Pre-designed Excel “Investment Tracker” file in which by just feeding the details of your investment like invested amount, tenure of investment and interest rate as it will auto calculate income per month from individual investment and all investments.
4. Any time you must be aware of your total saved corpus and income from all the investments.
5. The more you save and invest, your monthly income from investments will also increase.
6. Make a saving & investment planner from the age you are, till your age 45. Now decide the saving target per month like how much you will save every month of your salary and every year how much you will increase your savings. It is recommended to save 20% or more of your take home salary/income.
7. If by any chance you are not able to save targeted amount then try to save in upcoming months and ensure that in total, over the course of one year you must achieve the saving targets.
8. These all calculations you can do in Microsoft Excel or you can use our Pre-designed Excel “Financial Security- Planner & Tracker”.

By monitoring your money, income per month from investment, saving targets and planning for financial Security you can monitor the growth of second source of income.

Third source of Income – From Side hustle

1. If you are an early age, you must find, in which work you are good at it. This may be from your current profession or any other work you are good at it.
2. Finding out your four such skills. Find out in these four skills which can give you an earning source and at the same time you can joy working too.
3. At an initial age, your priority will be to become an expert and to learn marketing skills.
4. Both can boost your third source of income.
5. Work continuously for many years to get successful.
6. If you feel that you are not able to generate good income then you can switch to one of the other three skills that you have shortlisted.
7. You can also create multiple sources of income by working on more skills.

This third source of income can largely help you to build your financial security and in a later age you can make this as your first profession if you are not comfortable with your present first main source of job/ income.

What mind set you should keep while making 3X your income?

1. Do not rely on fast money making process like speculative money.
2. Keep patience while making these incomes. It is time taking process.
3. Parallaly plan, monitor and work on your financial security.
4. Try to invest in secured and semi secured investment options so your income from investments can give fixed returns.
5. Do not keep ideal your small amount of money, invest in some safe options.
6. Second source of income may take 15-20 to give good results so keep doing regular savings and investments.
7. Build habit to save every month.
8. To build strong foundation of third Source of income, you need to give at least 10 years time.

If you keep these things in mind, achieving things will be much easier.

At whatever age you are, if you want to achieve financial Security in early age with normal earnings then start working on all these three kinds of monthly income sources i.e.

1. Income from main job

2. Income from investments

3. Income from side hustle.

More important is to plan your financial security and achieve by monitoring the growth of your money corpus and income per month from investments.

This is all you can learn by reading my blog posts or you can directly connect with me on Whatsapp Chat (Link available on your screen) or Whatsapp Chat – 7852260834 to know how you can start working on it.

So, without wasting time, start learning and work on all three sources of income.

Read more…….

How to build financial Security with normal earnings – Step by step guide

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