Multiple Streams of Income
Estimated Lesson Time: 3 minutes
Real estate millionaires do not become millionaires by investing in just one property. They do not buy just one property and rent it out, or turn over just one property for a profit. Real estate millionaires usually work several properties at one time in order to maximize their profit and make efficient use of their time. Real estate millionaires have what is called “multiple streams of income,” which is essentially more than one source of cash flow. Millionaires in any industry often become millionaires by adopting this very same technique.
Multiple streams of income do not have to be within the same industry or come from the same general source. In fact, having streams of income from different industries is often more effective and provides a greater sense of security. Here are the four top general sources of income of most millionaires today.
- Real Estate - rental income, home appreciation, proceeds from sales
- Financial Markets - stocks, bonds, IRAs, CDs, money market accounts, generally any interest income
- Business - brick and mortar or Internet-based
- General Employment - trading labor for a paycheck
Consider the individual who has a 9-5 job that she thoroughly enjoys, but desires financial independence. By using the mastermind principle, she can assemble a team of experts in several areas with the goal of creating streams of income. It is not necessary for her to become an expert and focus in each area, especially while working a full-time job.
Why not put all of your focus and energy on just one source of income? At times, focusing on one source of income will produce the best results, especially in the case of a startup venture where your full attention is needed. However, generally it is easier to make a little money in several areas than it is to make a lot of money in one area. Having multiple streams of income is like increasing your chances at winning the lottery by buying several tickets.
Another reason why having multiple streams of income makes so much financial sense is because at some point in anything you do, the law of diminishing returns eventually kicks in. When this happens, your maximum efforts start producing minimal results. By refocusing your efforts on another stream of income, your chances of financial success greatly increase.
Consider for a moment that you have a problem that you need to solve: financial insecurity or a lack of money. A great way to solve any problem is by “attacking the problem from all angles.” Each stream of income created is an “angle” from which you are “attacking” the problem—the lack of money. If one angle fails, you still have several more working to solve the problem. Each stream of income on its own may not be enough to solve your financial problems, but together they are. You can also substitute “problem” with “goal” and use this technique to create substantial wealth.
The majority of wealthy individuals have multiple streams of income; they do not rely on just one source. This not only helps them to achieve financial security, but often leads them to financial independence. It does not always take money to make money, but it does take ideas and desire. Expand your thinking by asking yourself the question, “What can I do to create multiple streams of income?” The answer to this question may also be the answer to all your financial problems.
Take Your Year To Success To the Next Level
If you like what you are reading, please consider these options in addition to this free course. They include a hardcopy of the book and an intensive course with action steps, assignments, and personal coaching from Bo.
- Buy the Book. Year To Success - Available in hardcover, signed by the author. Also available in ebook, paperback, and audio from Amazon.com.
- Enroll in Bo's Life Mastery Online Course. This is a course that covers hundreds of life-enhancing topics that they never taught in school, but should. This is more than a course on self-improvement; it is a course on mastering life.
- Business Consulting. Schedule your complimentary 15-minute evaluation session with Bo.
Have a podcast or know someone who does? Putting on a conference? Dr. Bennett is available for interviews and public speaking events. Contact him directly here.
Some discussion questions (some may not apply to this lesson):
- Have you implemented this idea in your life? How has it been working for you?
- Do you have any interesting stories related to this lesson? Do tell!
- What do you admire most about this person? (success biography days)