Once you either have a solid, stable, growing Primary Source of Income (see Part 3) - and even if you don't have a stable income right now – one of the best and most important strategies for (1) increasing or augmenting your current income, (2) creating financial stability in your life, and/or (3) building true long-term wealth for yourself and your family, is to establish multiple streams of income.
This strategy is quite simple in concept, but not easy in practice. If it were, everyone would do it – and most would be better off financially. I say “most” because, like everything in life, nothing is guaranteed to work. But if you have a well thought out plan, and implement the plan well, it is an excellent way to generate anywhere from $500 - $20,000 additional income per month (or more).
The strategy is to establish incomes (multiple incomes) separate from your Primary Source of Income (i.e., your job). The illustration below summarizes the basic concept.
What this shows is an example where:
Each of these income streams are summarized below. It is important to understand, however, that these are just examples of ways to generate additional income streams. You need to create a plan that works for you in generating additional income. You can use more types of additional income or less, whatever works for you. Some people even prefer not having a “real job” or get to the point through the other income streams where they don’t need a “job”. Also, since each of these can be a “book” of its own (which I provide in other places on this website), the information below is just a basic summary of each, intended to just be “food for thought”.
This is the income generated from a “job’ or Primary Source of Income (as I prefer to call it). If you currently have a job which generates income for you, then you can take steps to increase the income from that job or at least learn to love your job more if needed (which usually will indirectly increase the income from that job eventually). There are many ways to do this. Click here to find out how.
There are many ways to build a business income – perhaps as a Primary Source of Income – or as suggested here, as an additional source of income. There are “brick and mortar” businesses you could start, like a opening a store based on one of your passions in life or exploring a franchise opportunity in your area. These generally require a relatively significant investment, but could be what’s best for you, depending on your situation. There are also home-based businesses you can start, like online income from “internet marketing” – many of which require relatively small investment to get started. These are just two examples of types of business income to generate additional cash flow. You can get more information on the “internet marketing” strategy by clicking here. As a start, however, if business revenue is something you would consider as one of your “income streams”, start putting together thoughts on the type of business you might want to start – then put together a plan to make it happen.
Many people have investments as a source of income or net worth appreciation. Many people think investments are only for rich people, but that’s not the case. There are many ways to start investing – even if you have to start small at first. There are even ways to start investing without any cash. Again, the specifics of this are outside the scope of this article, but some general (and traditional) investment ideas are things like gold, real estate, stocks, and stock options. Click here to learn more about stock investing and click here to explore possibilities for real estate investing.
Passive income is an excellent source of personal revenue, which most people either ignore or reject as “legitimate”. It can be, however, one of the fastest, best, least risky and most stable sources of income available. And, it can be done full-time (as a Primary Source of Income) or part-time (my wife and I spend about 5 hours per week on our passive income strategy).
Passive income can come from internet marketing (which is mentioned above under “Business Income”), royalty or “continuity programs” (such as from books, e-books, plays, or newsletters), and network marketing (which is one of the most sure ways to generate passive income streams of anywhere from a few hundred dollars to tens of thousands of dollars per month in passive income). Click here to learn more specifics about this type of income stream.
Once again, these are all examples of possible income streams to employ in an overall financial income and wealth-building strategy.
At a very basic level, the successful use of this strategy can help to either augment an income that may be insufficient to live the life you need or want or create a sort of “insurance net” in case your Primary Source of Income is lost for some reason (which can be more likely these days).
From a higher level perspective, this strategy can help to create surplus income, which over time can build your net worth – perhaps significantly – to the point that you don’t have to “work” at a “job” anymore and can lead the lifestyle you want for the rest of your life. It depends on what you want, what you are committed to achieving and the specific multiple streams of income plan you create.
BeHappy! my friends
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