Successful people do not rely on one stream of income. They create multiple income streams during their lives and are able to draw income from other sources when one source is temporarily impaired. Some of the additional streams may include: a side business, real estate rentals, REITs, stock market investments, annuities, private equity investments, part ownership in businesses, financing investments and royalties. Each additional stream gives them extra money that they can then use to invest in order to create other streams of income.
If someone relies just on one stream of income, their job, this single income stream can be impacted by a simple economic downturn and they suffer financially.
Start with slowly building something on the side. May be 5-10 hours a week, devoting yourself to something you are passionate about and that can eventually be monetized. Invest in yourself and your future now so that you can reap the dividends later.
Putting all of your eggs in one basket is simply a recipe for financial disaster. If that basket breaks, what do you do? If you want to make your life easier down the road, you need to invest in yourself now. Find something you are truly passionate about and that has potential to generate an additional stream of income. Passion is the key. It’s the most important attribute and is the catalyst to wealth building. When you pursue something you are truly passionate about, you are somehow able to find the time to devote to it. But you’ll never find your passion unless you try.
But how do you create multiple streams of income?
Save, save, save – Save 10 to 20 percent of your net income every year and then invest it. Start a side business or side career that generates additional income. Create multiple investment baskets- Invest your savings and additional income into investments that generate passive income. If you can’t do it on your own, partner with others and keep building your portfolio of assets that generate passive income.
Sven Franssen