Why You Need Multiple Streams of Income
Pocket Sense defines multiple streams of income as “as having income from several different sources. If one stops or is eliminated, you can rely on another source.”
In other words you are not dependent on one source of income.
The wealthiest people today have multiple sources of income (MSIs).
Millionaires, on average, have 7.
“Never depend on a single income.” – Warren Buffett
We do not have to be millionaires to have multiple sources. But having more streams of income can provide you with not only security and more income but also with a more rewarding life.
“Many small streams will form a big river.” – Swedish proverb
Developing multiple sources of income, requires you to challenge yourself, to think, to find other means to generate revenue.
For this reason, it requires you to develop your abilities, whether it is a new capability, more knowledge, better skills, a specialty and so on. You become a researcher, a dreamer and an initiator. You become more imaginative.
You develop a mindset that constantly looks for opportunities.
At the same time, It requires you to move outside your comfort zone, to take risks, and to be brave and try new ideas.
To quote Star Trek, “to go where no one has gone before.”
It does not mean that every venture will be successful. But it means you are at least moving your feet and working towards a new source of income, that can supplement what you already have.
And don’t think it is easy. It takes work. You may even need help or advice on starting something new.
I started first with a home based business, to provide additional income. This was smart as it was low investment but quick return and it had residual income inside the business model. It also allowed me to work my day job at the same time.
With the money I made from my business, I decided to use it for something totally foreign to me.
I decided to develop a real estate investment business. I had no idea how to do it. But I knew I wanted a residual type of income, versus a day to day salary.
So I studied the experts, attended seminars and conferences, became a member of the local real estate investment organization and read books on the subject. That is how I prepared myself to get into real estate investing.
Today, I have multiple real estate properties across Canada that generate revenue and provide me with another income source.
And this has also provided me with additional tax benefits from having my own businesses.
I also invested in other ‘hands off’ real estate investment products to add to the income sources.
Finally, I will say this.
It allowed me to quit my day job, to get out of the 9-5 rat race and the daily commute, and to spend more time with my family.
So if you have multiple sources of income, good for you! If not, then maybe it’s time. You never know when the axe may fall on your current job.
“Do not put all eggs in one basket.”– Warren Buffett
If you want more clarity on how to go about multiple streams of income, send me an email firstname.lastname@example.org and we can go over your wants and needs.