How Multiple Streams of Income Work & Why It Is Important to Have Them I have several streams of income, hence the term multiple streams of income, which I have built over the years I have progressed in my entrepreneurial ventures. Most of the streams generate what I consider passive income for me, with many others that also generate recurring or residual income. Why am I highlighting passive and residual income streams? Because throughout your life you will come across many income opportunities, all of which will be competing for your time, attention and resources. And because you only have 24 hours in a day, it is important that you have clarity over what is it that you want out of your income streams, or life for that matter without getting too philosophical. The effect of multiple streams of income works just like a snow ball that is rolling down a snow hill. The longer it rolls, the more momentum it gains and picks up more snow (income in our case) along the way. You may have several small, medium or large size income streams running in parallel, related or completely unrelated, but they all contribute to your personal financial growth. The more streams you have, the more and faster you will expedite the wealth building process (your money snow ball). When your wealth increases, you have more discretionary income in theory to invest in other money making opportunities, hence the snow ball effect. This is why people say that your first million is the hardest to make.The rest comes in abundance relatively easier. That is the simplest way I can describe how multiple streams of income work. Why Are Multiple Streams of Income Important? rossgroup.wakeupnow There are many reasons why multiple streams of income are important, however my reasons may not be the same as yours or someone else’s. Our reasons will vary and are predicated on our end goals and objectives. In other words, the answer to the question “why should we establish multiple streams of income” determines the importance to each one of us. The following are just a handful of reasons why I feel multiple income streams are important in my life. Safety Net rossgroup.wakeupnow During the early years of my career in Corporate America, back when I was naïve, I felt very safe and comfortable in my position. As time passed and I gained more “real world” experience, my eyes started opening to the brutal reality, the worst of which we saw in the last few years. Truth is, very few jobs are as safe as we think. Most people, regardless of how they feel or how strong they perform are dispensable. Simply speaking, most jobs are exposed to potential downsizing. When a person loses their job, they lose 100% of their income. For someone who relies on only one income stream (income from employment), having a solid emergency fund or savings account helps mitigate the risk of devastation. That is why a strong understanding of basic, fundamental personal finance is important not just for an entrepreneur but everyone. On the other hand, someone with multiple streams of income has alternative sources to rely upon in the event they lose one of them such as employment. Frugality Has Its Limits rossgroup.wakeupnow This is where I feel email is differs from the 7,652 personal finance training out there. Frugality, or cheapness, can only go so far. I mean you can’t stop paying for electricity or heat. While some are ok subscribing to what I think is a life of compromises and mediocrity, I am not. While there are limits to how much you can cut back, there is no limit to how much you can earn. Most people focus on trimming expenses to boost the bottom line because that is the easiest and most convenient (not in my opinion) way to do it. It also helps that advice to cut back on your Starbucks is on every personal finance guru’s list. But why not increase the top line instead? Whether you increase the top line, or trim the expense line, the impact on the bottom line is similar. Again, there is no limit to how much you can earn, but one will eventually get tired of compromises and living a life of mediocrity, or bite the tongue and accept it despite deep down inside they’d rather not. Power of Leverage Money makes money, we have all heard that. There is a lot of reality to that statement. When your streams bring in more money, you have more money to invest in interesting ideas and projects. Whenever I add a revenue stream to my portfolio, I see an exponential increase in the bottom line because the other streams start to kick in a higher gear as well. How does that happen? If you have income streams that share a similar audience, you can up-sell and cross-sell all over the place like a spider. Even if you don’t. Choice and Selection When you have multiple streams of income, you have the option to work on whichever stream you choose to when you wake up in the morning. This alone makes the whole concept of multiple income streams well worth it in my opinion. Life rarely gets boring when you have a plethora of choices. Some people choose to feed the winners and starve the losers.That is also quite alright.The point is that you have options, and not many people can say that.These options also reinforce diversity in your financial position because when one stream dries up, you have several others to count on. WAKE UP NOW !!!! To see one of my other streams of income,that is helping me earn over $16,000 a month with my multiple stream this year. If you have not had the chance to build a strong income with MCA. Join me and my top leaders on a 6 month ride. I Know we can have you earning over $6000 plus a month. rossgroup.wakeupnow 804 253 7677
Posted on: Thu, 20 Jun 2013 18:37:17 +0000
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