Check how to build stable cashflows

Cashflows are important to feed your family. If you are only depending on your active job income, question yourself again whether it will suffice you in the near future !!

Creating wealth became much more harder, earning fat paychecks are no longer an easy task until you are upto date. Fear of AI will not let you sleep even if you own a high paying job, move your needle fast, navigate your ideas and monetize them. Let us brainstorm what we can be our poossible sources of cashflows apart from paycheck.

I don’t want to give unreal ideas and raise hope for false expectations, let’s get real deals which can solve & save us.

• Imagine you need money suddenly but month end is far away, no need to take any loan or borrow money from someone for interest. Your company can provide you certain amount of money depending on the policies that it has or there are different ways like Jupiter where you can avail the facaility of on-demand salary. It is very important to never fall in debt because of urgent needs if there is any posibility of avoiding them.
• You can lend your money to the individuals whom you can trust at a fixed rate of interest, so that it will be added to your monthly cashflows.
• Many people join in registered or unregistered chits, you can consider them if they are giving you good interest rate.
• Start developing proficiency in a particular domain so that you can guide others, later you can think of monetizing it.
• If you are living in a large home in an area where there is lot of demand for shop rentals, try to do asset restructuring and gain rentals for the same as a stable cashflow. It is quite capital expensive idea but if your mid 30’s or 40’s and trying to increase your stable cash flows, you can consider the idea.
• Many people whom I have interacted so far, they keep money idle in thier bank accounts which devalue your networth daily. Some people try do SIP by pulling little amount of money every month which is a good move but problem is what about 95% of your money which is sitting idle in your bank account with same savings rate of interest.

Example:

Jack has 1 lakh lying in his bank account which is not generating any meaningful returns. His friend suggested to invest in mutual funds every month using SIP. Jack started investing 5,000 every month but after the first month still 95,000/- is sitting idle which is not parked anywhere. What might be the good solution for it?

After investing 5,000/- in first month, Jack must park rest of his money in liquid instruments which don’t fluctuate but give higher returns than bank savings deposit. Then from the second month, Jack will pull 5,000 from liquid fund and do SIP. In this way, he is generating extra return on the liquid instrument where he parked his funds and parallely following his friend’s advice !!

Quick Recap:

• Never get into debt first and use services like Jupiter if you want to fill your pocket before end of the month
• Lending is a good option if you find right person
• Chits or liquid funds
• Asset restructuring for rentals
• Be good at one skill & try to monetize going foward