Having multiple sources of income is not only for people who are looking to build wealth, but it’s a general principle for financial freedom. 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 your cash flow if you lose one of your income streams. The logic is that if one income stream runs dry, there will still be others continuing to produce income. So not only does it allow you to increase your income, it also gives you financial security.

“I enjoy building something good and having a successful product and making money.” – Wayne Huizenga

Just like that old expression often heard with investing, about not keeping all of your eggs in one basket, having multiple streams of income is the same concept when it comes to your cash flow. It makes total sense to diversify your income stream just like you would your investments. Think of it as a way of protecting your cash flow.

And, not only is this a “safety net” for your cash flow, but like I mentioned earlier, 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 it’s probably a good idea to learn and apply what they do. So start creating that extra income for yourself and get on the road to financial freedom.

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