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.

79 comments

  • Comment Link Boys Sports Wear Thursday, 18 February 2021 05:41 posted by Boys Sports Wear

    Boys Sports Wear https://www.goodraincoat.com/boys-sports-wear/

  • Comment Link Bc203v Dro Thursday, 18 February 2021 03:50 posted by Bc203v Dro

    Bc203v Dro https://www.dgbiga.com/bc203v-dro/

  • Comment Link Hair Removal Laser Price Wednesday, 17 February 2021 23:42 posted by Hair Removal Laser Price

    Hair Removal Laser Price https://www.haidarilaser.com/hair-removal-laser-price/

  • Comment Link Rfid Blocking Wednesday, 17 February 2021 21:35 posted by Rfid Blocking

    Rfid Blocking https://www.cxjsmart.com/rfid-blocking/

  • Comment Link Pin Post Wednesday, 17 February 2021 21:18 posted by Pin Post

    Pin Post https://www.jitai-electronics.com/pin-post/

  • Comment Link yeezy boost Tuesday, 16 February 2021 02:01 posted by yeezy boost

    I must show thanks to you just for bailing me out of this type of difficulty. Right after exploring throughout the internet and finding recommendations which are not helpful, I was thinking my entire life was over. Being alive without the approaches to the issues you've sorted out by way of this article is a critical case, and the kind that might have adversely damaged my career if I hadn't come across the blog. Your primary skills and kindness in taking care of the whole thing was excellent. I am not sure what I would have done if I hadn't discovered such a point like this. It's possible to at this point relish my future. Thanks very much for your reliable and result oriented help. I won't be reluctant to suggest your blog to any individual who would need guide about this matter.

  • Comment Link supreme hoodie Saturday, 13 February 2021 21:53 posted by supreme hoodie

    My husband and i felt absolutely joyous Albert managed to conclude his investigation through the ideas he was given in your blog. It's not at all simplistic just to happen to be giving away strategies which often other people could have been selling. So we fully grasp we have the blog owner to thank because of that. All of the explanations you made, the easy website navigation, the relationships you will aid to create - it's got all fabulous, and it's aiding our son in addition to our family do think the theme is cool, which is certainly quite fundamental. Many thanks for everything!

  • Comment Link jordan 1 off white Saturday, 13 February 2021 10:50 posted by jordan 1 off white

    My husband and i were so contented Edward managed to carry out his researching because of the ideas he had out of your web site. It's not at all simplistic to simply possibly be making a gift of information which usually some people have been selling. And now we keep in mind we now have the blog owner to thank because of that. The type of explanations you made, the easy website navigation, the friendships you will make it easier to create - it's mostly sensational, and it is leading our son in addition to us believe that this matter is pleasurable, and that's exceedingly vital. Many thanks for all!

  • Comment Link longchamp outlet Thursday, 11 February 2021 11:02 posted by longchamp outlet

    I wish to express my thanks to the writer for rescuing me from this particular matter. After surfing throughout the the net and coming across principles that were not beneficial, I assumed my entire life was done. Existing without the presence of strategies to the difficulties you've resolved through your main report is a critical case, and ones which may have badly affected my entire career if I had not come across your web site. Your actual capability and kindness in touching all the stuff was precious. I don't know what I would have done if I hadn't come upon such a stuff like this. I'm able to at this moment relish my future. Thank you very much for your expert and result oriented help. I won't think twice to propose your blog to anybody who requires guide on this issue.

  • Comment Link jordan 13 Thursday, 11 February 2021 03:50 posted by jordan 13

    My wife and i have been so thrilled Michael could round up his reports while using the ideas he got from your weblog. It's not at all simplistic to simply choose to be giving for free procedures some other people could have been making money from. And we all do know we now have the website owner to be grateful to for that. The main illustrations you have made, the easy web site navigation, the relationships you will give support to engender - it is everything fantastic, and it is aiding our son and our family feel that the content is interesting, which is extremely mandatory. Many thanks for the whole lot!

Leave a comment

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