There is a big disparity in the quality of life of the average salary worker in active service and in retirement. This gap between a luxurious life made possible by the borrowed wealth of the employer. And the miserable life made possible by the neglected wealth of employees is the reason why many people dread retirement.
The big question though is why does this gap exist?
Today I will show you the one reason why this gap exists, and how you can approach retirement with financial confidence.
So why does this gap exist?
There is only one reason. And this reason is the presence or absence of a Personal Money Making System
What is a Money-making system?
A money-making system is any system that produces income enough to take care of bills, sustain living standard, and seize opportunities
Every organization has its own money-making system that generates income for the organization. Organizations use this income to pay bills, seize opportunities, and fund their luxurious lifestyle. It is also the income from this system that pay salaries and fund employees’ lifestyle. Employees get to benefit from this system and eat from it as long as they are connected to this system. And Employers reserve the right to choose who joins and leaves the system. Retirement is one of the ways employers refine and rejuvenate the system.
The problem however is that most employees are oblivious to this system even though they work in it every day. Over 95% of them do not know how to create their own money-making system or even create one before retirement. They are carried away by the trappings of wealth produced by their employer’s system and neglect their own money-making system. At the end of their career, they are thrown out of the system and cut off from the wealth supply.
It is at this point that employees realize how ineffective their own money-making system has been. For the majority, the only system left to fall back on is the Government system-Pension. Unfortunately, pension is woefully inadequate to sustain employees’ living standards at the same level.
So If you are reading this article and the retirement bell has already begun to ring for you. And if you have not yet created your own money-making system. Now is the time to do so. Be rest assured that you will elevate your pain, suffering, and embarrassment in retirement. If you do not create your own money-making system.
So how do you create your own Money Making System and maintain the same quality of life?
There are three things you need.
First, you need a Money-making seed. Second, you need the right Money Making Investment vehicle. And third, you need a Profitable work to retire to. Let’s look at each of these points in detail.
The Money Making Seed.
One of the basic things to do while working in another man’s system is to create a certain seed that you can use to create your own system. All seeds are not created equal and certain seeds carry more value than others. Nevertheless, without a seed, you cannot create a money-making system to depend on.
So what are these seeds?
There are generally nine seeds you need to create your own money-making system. You do not need to have all nine seeds. But the more seeds you have the stronger will be your money-making system. Let’s look at the seeds.
The Nine Seeds for a Solid Money Making System
- The First seed is Savings or Cash Reserves- You need solid cash reserves to build a money-making system.
- The second seed is Income Producing Real Estate. If you have income-producing real estate with accessible funds you can also use this as the seed for your money-making system.
- The Third seed is a Large Pension Funds- Although a large pension Fund is a seed. It is one of the least viable seed. This is because pension is based on the cumulative contribution of just 20% of your income. This means that you will have to shrink your life downwards to depend on pension. Although pension can be diversified to create a lifetime income. Your living standard will still be stuck within 20% zone. The truth is Pension as of today is not a lifetime income and pension’s income is adjusted downwards the longer you live. So depending on pension alone is not wise.
- The Fourth seed is Liquid Investment- Your Liquid Investments depending on the size can serve as the seed for creating your own money-making system.
- The fifth is Lump Sum Payments. Lump-sum payments like Gratuity, 13th-month salary, or special Bonuses can be channeled to create your own money-making system.
- The Sixth is Life Insurance. If you have life insurance investment of any sizable cash value. This can also be used.
These are the six seeds to use if you have money stored up in any of the above options.
But If you have little money the rest three Options are what you can explore.
- The Seventh Seed is High-Income skills. To make money quickly there are certain skills you must have. I call them the Rich skills and there are only three of them. The First is problem-solving skills also known as innovation or creativity skills. The second is Relationship Building skills also Known as Networking skills. And the Third is marketing skills also known as sales skills. These three skills are the skills you need to make money from scratch.
- The Eight seed is Valuable Relationships. You need other people to deploy your skills and that is where valuable relationships come in. Without the right relationships, you cannot make any money.
- The Ninth seed is Opportunities to Earn Side Income: Even with the right skills and valuable relationships, you cannot earn income without the right platforms and opportunities. Thus finding income opportunities is key to creating a strong money-making system.
If you do not have any of these nine seeds, please know that your only other option is to shrink your life to fit into the 20% budget of your pension. There is no other way.
So what happens after you get the seed?
After you get your seed the next thing to do is to get your Money Making Investment Vehicle. The Goal of the Investment Vehicle is to create a look-alike income for you in Retirement.
2.The Money-Making Investment Vehicle.
One of the worse things that can happen to you is for you to put all your years of hard work inside an Investment vehicle and lose it to thin air. When you are planning for retirement you need Certainty and not gambling. And there are only a few investment vehicles that fit these criteria. These investments are suitable Investments that can create a look-alike income like your current salary.
So how do you know these Investments?
There are 11 characteristics Investments that qualify as Retirement investment should have. Let’s take a look at them
The 11 Characteristics of the Right Investment Vehicle for Retirement.
- They have the capacity to produce consistent and regular income and can perfectly replace salary.
- There are Passive in nature. Passive income gives you the allowance to focus on other income-generating activities.
- There do not fluctuate, reduce in size, skip, or miss.
- There last for a Lifetime and cannot Run Out on you.
- There are strong enough to cover your Bills, living standard, or lifestyle whichever you choose.
- There have Zero to little maintenance once set up.
- There are difficult to Lose.
- The risk inherent in them has a low likelihood of occurrence.
- There are a Proven Investment Option
- There require Zero ongoing expense once set up
- Your Principal investment is not destroyed even in the worst-case scenario
These are the eleven Characteristics of the kind of investment that is suitable for your Retirement Income. If you need help understanding which Investment is right for you at this time send an email to [email protected].
So what happens after you replace your income?
The next thing to do is to find a replacement for your work. The other part of your job that brings meaning to your life.
One of the reasons you go to work every day besides income is the satisfaction you get from your work. Idleness is not in our DNA and your life becomes meaningless when you are Idle. Retirement is thus not an express ticket into a life of idleness and laziness. You must preserve the satisfaction you get from your work.
But how exactly do you achieve this?
To achieve this you need to export the structure that produces productivity, Value and Income in your current work.
Your current job brings you satisfaction because there is a structure to everything you do. There is a big agenda that runs the organization. There are processes and systems. You are told what to do, when to resume and how to make each hour count. And you work in collaboration with other people each thriving in their areas of strength. Retirement marks the end of this structure. You will be practically thrown out from a structured environment into your own unstructured environment filled with idle days and idle time. If you do not plan ahead to create a structure for your day and around the things you love. You will descend from a life of happiness, productivity and meaning. To a life of depression, demotivation and anger. Creating structure in your day, giving meaning to time and surrounding yourself with the right people are the three ways to preserve the satisfaction you currently get from your job.
The problem is while most people can work in a structured environment, only a few people can create their own structured environment. To enjoy retirement, you must create a structure around the work you love. Make the work profitable and surround yourself with the right people.
These are the only three things to do to approach retirement with financial confidence.
Perhaps you are thinking to yourself, how do I start and where do I begin. We can help you get started. To get help send an email to [email protected]/
The best way to enter retirement with Boldness is to create your own money-making system, carry along the things you loved about your job and leave the rest behind.
Grace Agada is The Senior Financial Happiness Director @ Create Solid Wealth. She is an Author, and Column Contributor in Six National Newspaper. She is a contributor at BellaNaija, Nairametrics and Proshare and she is on a mission to help working-class professionals and CEOs become more financially successful. To learn more about Grace and how she can help you send an email to [email protected]