I apply a “GPS” concept to wealth. Having this GPS concept allows me to home in to what I need to focus on and how I invest my time, talents and treasures which are all limited. First of all, the definition:
|G – Grind
Examples include: Salary from employment, direct profit from your business where you are THE boss but still need to put in the regular hours in overseeing the business.
|Essentially, your main job. Most of us focus towards the Grind in the early part of our lives in getting a good education, building the right network and climbing the corporate ladder all in the bid to stake out a good career and getting a higher pay. The salary you earn is a direct result of your grind from your day job. Good for you if you love your day job. If not, it’s just sad.
|P – Passive
Examples include: Rental income, Dividends and Interests, as well as staking rewards from Cryptocurrencies.
|Very minimal effort required from you for the money to roll in. And you are probably not keen in any other matters relating to this as long as the money keeps coming in.
|S – Side Hustle
Examples include: Income from your blog/ Youtube videos, stock/cryptocurrency trading profits (you do not intend to hold long term), online sales
|This is the category which ought to be the most fun, fulfilling and rewarding. It’s really a side hustle – something you enjoy doing and brings you some additional income on top of your day job.
Most people start with a focus towards “G – Grind”. Nothing wrong with that as you do need capital to move towards “P – Passive” and “S – Side Hustle”. “G – Grind” also provides needed assurance on income (unless there’s another economic downturn or you have really shitty bosses or simply in a bad sector) which might be needed if you have dependents and loans.
The goal however, is to:
- Gradually shift the weightage of income towards “P” and “S”
- Expand the absolute income using “P” and “S” as additional levers
- Strike a new balance between GPS (and repeat as necessary, especially when there is a new milestone in life)
In my subsequent posts, I’ll write about opportunities in all 3 fronts (GPS) and I’ll try to be as up to date and as current as possible.
And please note the important disclaimer below:
This website is created for sharing of my personal views only. It is should not and cannot be construed or replied on, and is not intended to constitute legal, tax, accounting or investment advice (or any form of advice). Any reference to an investment’s past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit. You are advised to do you own due diligence before making any investment decisions.