Looking To Increase?
Due to the current state of the global economy, many are seeking to increase their income, as well as their cash-generating assets. Increasing your cash-generating assets will ultimately also increase your income. The reason why I use the term ‘wealth trap” is that many are applying a strategy that the wealthy tend to use, and have used for generations. The idea of leveraging debt in order to start a business or purchase a rental property is an “old wisdom” that has been proven to be highly effective in the past.
However, the success rate of this strategy is beginning to drop. Legacy businesses are struggling. When we look at the recent performance of large and successful entities such as Amazon, we can imagine how smaller businesses must be battling. I personally know of people who are now paying an additional 25% on their monthly mortgage repayment.
If you were applying this strategy and surviving on a tight margin, it’s likely you are now in trouble. These assets might even be appreciating in value but if you have to service debt in order to “own” them and can’t generate the income, it doesn’t really mean anything, does it?
Shrinking margins are a reality. In terms of property, it depends on where you are located. In many countries, embattled governments are pushing up property taxes. Furthermore, the cost of government services is also increasing, ultimately eating away at the bottom line.
There are costs to owning a business or rental property. You don’t get to simply bank the income. There are overheads and running costs. Ensuring that these costs remain below a certain level ensures that you are still securing a profit.
The Level Is Being Lost
As the economy continues to struggle and interest rates continue to rise, the level that secures survival is beginning to rise. Keeping your head above water as a business owner is simply becoming more and more difficult. This is where Crypto is offering a “way out” for so many people. It will however definitely require effort on your part. There are many who have managed to supplement their income via Crypto opportunities without incurring any additional cost.
I think one of the biggest misconceptions is that the amount of additional income one can earn is “somewhat limited”. However, once again, that depends on how much and how long you are willing to work at it. Remember, the fact that these opportunities are in many cases free should provide additional motivation. Taking on additional financial risk in this economy could turn out to be catastrophic, at least in my opinion.
I wonder how many people have taken on additional debt in order to finance a new business idea that has since failed. I am not saying that one should never “take risks”. What I am however saying is that one needs to do the right thing at the right time. How many were enticed last year by low-interest rates, only to have been “baited”?
Perhaps, it is just me, but I see tremendous opportunity within the Crypto sector to begin supplementing one’s income. I know of many who have even abandoned former jobs due to their “Crypto Explorations” being so successful. As with everything, it’s what you make of it.