Why You Need to Create Multiple Streams of Income

2223

In uncertain times, people often fear that they may lose their jobs from one week to the next. But those who have managed to create multiple streams of income have less to worry about it.

You have to always make sure you have money coming from different places. Freelancing on the side of your day job is one of the options.

Most millionaires amassed great wealth because they figure it out in early stages that they need to create multiple sources of income. Indeed, having your money coming from multiple sources isn’t just a survival technique, it’s also a way to build wealth.

In its book “Rich Habits” Tom Corley studied for five years the habits of rich and poor. Here is a brief about the income streams of the most self-made millionaires:

  • 65% of self-made millionaires had three streams of income.
  • 45% of self-made millionaires had four streams of income.
  • 29% of self-made millionaires had five or more streams of income.

Having multiple streams of income is the same idea as diversifying your investment portfolio. When one income stream suffers, the others make up for it.

Here are some of the ways you can create multiple streams of income in your own life.

If you still have a regular job, you can start a small business.

Want to know another habit of millionaires? Most of them have companies. At least half of the world’s millionaires own their own businesses.

If you already have a business and you survive the first few years, you are on your way to becoming a millionaire.

If you don’t own a business, consider ways to start one. At first, it may look like extra money, just as it has for many of us employees turned business-owners. But, eventually, you may be able to take the leap into full-time self-employment.

Find multiple streams of income to incorporate within your existing business. Your focus should be on finding multiple sources of income within the same business.

For example, you can make money consulting and you can make money through offering sponsorships of events related to your business.

There are also plenty of online opportunities you can explore and relate to your business activities.

To stay on the safe side, you could plan how to generate different sources of income within your first business once it sustains itself and it doesn’t need your full attention. 

Another option to explore is how to create passive income. Such stream refers to money that you earn without having to invest your time for payments. Such income offers an ultimate form of financial freedom.

Most people who earn more money than they can spend choose to invest it in real estate. So, they secure regular rental income and reap the benefits of long term property value appreciation.

If you manage to create multiple streams of income in an early stage of your life, you can rest assured that this is a wealth creation strategy for a lifetime.

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