“I enjoy building something good and having a successful product and making money.” – Wayne Huizenga
Having multiple sources of income is not only for people who are looking to build wealth. It’s also 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.
What’s the Purpose of Having Multiple Income Streams
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. 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.
“The rich invest their money and spend what is left; the poor spend their money and invest what is left.” – Jim Rohn
Even though there are so many different ways of making extra money to increase your income, it can still be hard to figure out how. When creating multiple income streams, one way would be to take advantage of your own potential based on hobbies, interests, experience, talents or passions that you already have.
Whatever you choose to create your 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. The idea is to find something that fits with who you are that you can see yourself doing.
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 more passive type of income you try to create, the longer it will take to see results. So always know that patients is key.
The most simple and easy way to start maximizing your income generating potential is through your primary salary by taking any excess income that can be used or reinvested to generate additional income streams and earn more money. It could be anything from working overtime, to reducing your budget to create that extra money. Whatever way is available to you, just do it! It will make all the difference.
“You’d be wise to have multiple streams of income flowing into your life.” – Robert G Allen
The idea of diversifying your income in various ways is to create a well-diversified income portfolio with multiple income streams. The point is to start with something that is manageable based on your time and resources. And then work to build it up from there. It’s not always necessarily quick and easy, but with determination and patience, over time you’ll reach your goals.
You don’t need a ton of money and you 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 your life. First you need to come up with an idea to make extra money. Plan on how you’re going to implement the idea. And the most important thing to remember is to make sure you take action!
The action you take to get your idea off the ground doesn’t necessarily have to be massive action. Always remember, slow progress is better than no progress, the important part is progress! By thinking of it this way, you can continue to work at your job, invest your excess income to keep creating and building your multiple income streams.
Building an extra source of income can take time and building multiple sources is the main objective, so patience is essential. You have to understand and keep reminding yourself if you have to, that this is a long road and the time you take now to build it will pay off in the long run. The more income streams you’re able to build and the more passive it becomes the closer you get to financial freedom!
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