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Loading ...Small Business Owners - Protect Your Income
(No Ratings Yet) Loading ...In my entrepreneurial journey, I follow a simple but powerful wealth building strategy: secure and diversify.
Secure means I secure a portion of income I received from my businesses, whether it’s online or offline, to some forms of protection: insurance, certificate of deposits (I don’t like the interest rate, but it’s a save haven for me) and precious metals.
Diversify means I invest another portion of income in order to make my money work harder for me, in the form of businesses, real estates and stocks.
But, first-thing first - have you protect your income?
Income protection: what and how
Whether you own a business or self-employed (sole proprietorship), you need to think of protection measures to secure your hard-earned cash.
If you own a business, you need to protect your revenue and cash flow by taking insurance that protect your business. Don’t forget to form a legal entity for your business (i.e. LLC) to protect yourself from losses and any legal actions. You should also invest, invest and invest - investing is a form of income protection for businesses!
If you are self-employed, you need to protect your income by taking a form of income protection insurance, that typically pays out a regular income if you are unable to work due to illness, disability or sickness.
Protecting your income by investing
Investing is essential if you want to adopt secure-and-diversify strategy.
I understand that most people would say, “well, investing is cool - but what about the risk?”
Risk, my friend, if you do nothing and hide your money under your pillow :)
You see, there are certain investments that are low in risk yet considerable in return. Of course, if you asked me, I would answer investing in businesses is the best form of investment.
Consider investing in precious metals, for example - not that it will not drop in value - because it does to some extent, but the security and ever-increasing value of investment that matters most. Consider gold - in recession the price of gold rises accordingly to oil prices - so, even in bad times, precious metal investment is lucrative.
My suggestion: insure and invest
To secure and diversify, you need to insure and invest.
Insure your income, invest it wisely, and stop thinking of lavishing your money for a while. You will notice that delayed gratification will bring you more, at a faster rate than you think. Trust me, I’ve been there - lived lavishly and ran out of money no matter how much I made.
Start prioritising well, and your priorities will allow you enjoy your hard-earned money, as well as securing it well.
Ivan Widjaya
Secure and diversify
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