People that are wealthy have multiple income streams, meaning they earn money by creating additional sources of income. In fact, the average millionaire is known to have 7 different income streams. Aside from making more money, the reason for having more than one source of income is to reduce the impact to our cash flow if we lose one of our income streams. The logic is that if one income stream runs dry, there will still be others continuing to produce income. Just like that old expression often heard with investing, about not keeping all the eggs in one basket, having multiple streams of income is the same concept when it comes to our cash flow. And not only is this a “safety net” for our cash flow, but it’s a tremendous wealth building strategy too! There’s a reason the wealthy do what they do and instead of being envious or jealous of them let’s learn and apply what they do.
When creating multiple income streams, the goal should be to take advantage of our own potential based on hobbies, interests, experience, talents or passions that we have. Whatever we choose to create our additional income, it should take little to no money to get started. There are so many options and opportunities available, with a little research and/or creativity, the means to create additional sources of income are virtually limitless. Of course, the more passive income streams we create the easier it will be to create more. Even the most passive forms of income take time and effort to build, but the time and effort put into creating those types of income streams will be well worth it. The most simple and easy way to start maximizing your income generating potential is through our primary salary by taking any excess income that can be used or reinvested to generate additional income streams and earn more money.
The idea is to diversify our income in various ways to create a well-diversified income portfolio. The point is to start with something that is manageable based on our time and resources and work to build it up from there. We don’t need a ton of money and we don’t need a lot of time to get started. Of course, to say it doesn’t require any time would not be true, but there’s also no need to have it rule our life. Always remember, slow progress is better than no progress, the important part is progress! By thinking of it this way, we can continue to work at our job, invest our excess income to keep creating and building our multiple income streams. The more income streams we’re able to build and the more passive it becomes the closer we get to financial freedom!
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