Multiple Streams of Income is Key to Financial Freedom
Did you know that the majority of multi-millionaires have seven or more streams of income. Yes, that is correct - Seven!
Still have some work to do...
Having that many streams of income sounds great, but what it really had me thinking about is the majority of society only has one. One income - generally a job, which you can lose to a layoff, firing, etc. Putting someone at zero just like that.
Additional Streams of Income
It's important to have more than one stream of income for several reasons:
- It's prudent (if you lose a single source of income now you have to worry about putting food on the table)
- You diversify your risk (if you have a sole niche business that relies on the rules of larger re-seller, i.e., AMAZON, one change to their rules could halt that income stream)
- You can reinvest the proceeds you don't need to live on into other potential income producers (fixed income, rental property, etc.)
Example
Currently I have three streams of income:- Rental Properties
- Small equity share in a business
- Cryptocurrency
Outside of that I'm always looking at business opportunities and investments that generate income. Most recently I'm digging into an oil and gas equip refurbishing operation that takes on investors and cuts a piece of the profits to them on the equip resale once it is re-certified. Not something that is normally in my wheelhouse but any opportunity is worth looking at in my opinion. Especially when chasing those seven streams!
I see so much of this around me. No thought of losing the only income source they have and hoping someone will be able to bail them out when they do. Thanks for this timely reminder.
Yup, in the end this is why the general masses love big government....it is their safety net.
I have heard that successful people do that.
I have:
This last one I'm trying to get bigger
Hopefully we get a pullback in crypto prices to add some more coin! :-)
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That is a lot of streams. Billionaires probable has more than 7....
Yes it is. I need more! :-)
There are more opportunities now then in the past and since the birth of the internet. I got to learn how to earn more than just from my 8-5 job.
Yup, also the whole "gig" economy movement too.
Great insights as seven is much more than I had thought about! I guess I better start expanding my own and get money working for me!
This is such a simple concept, and has been taught by many financial professionals over the past several decades, but so many people fail to recognize its truth.
This is precisely what we are in the process of doing. We've got one major and three minor sources of income so far, and my goal is to enhance those three while adding more over time.
One thing for certain, we have no shortage of ideas !
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That's awesome! Yes, ideas seem to be aplenty for me as well...time and capital are the commodities ;-)
Ain't that the truth!
And, in my case, I'm 5'2" tall, so some of the things we need to do when my 6'3" husband is around, and he's on the road most of the time.
Frustrating, but fixable, and slowly but surely we're making progress.