It used to be, that when you started a job you were in it for life. Left school, worked, got the watch and pension. Today, the average person is in a job for 5-7 years.
Savings were with a bank you had been with for life. You knew the bank manager, personally. When you wanted to buy a house it was done on a handshake.
The internet and globalization have changed the world forever. So has the way of making money and planning for the future which is why to survive and thrive in the global economy you need to have Multiple Income Streams.
What are Multiple Income Streams?
Image your only income stream is your wage. You go to work every day and every month you receive your salary.
What would happen if the company you work for suddenly stopped trading?
The job security you thought you had would stop. There would be no monthly salary but the bills wouldn’t stop coming in.
Multiple Income Streams is a wealth creation strategy ensuring there is income going into the bank every day, week or month.
Multiple Income Streams are regular payments from each of several different income sources.
The income sources can be grown and reinvested when times are good. They can be tapped into when things get tough.
You never need to struggle for money ever again.
Start Small and Grow
There is a misconception about Multiple Income Streams. It’s a concept that is misused on a frequent basis.
You may hear someone say about diversification in something such as shares. They talk about multiple income streams from the finance sector, the retail sector and the leisure sector. In fact, there is only one income stream and that is from shares.
When looking at Multiple Income Streams there are 8 different income streams. The aim is to start small and grow each income stream while the economy is good or favors that sector.
When times are bad, the strategy is to draw down a percentage of the income each month. This allows the pot to continue growing while also providing income.
For example, if there is $1000 in dividends being reinvested each month back into shares. A simple strategy would be to draw down $250 and reinvest $750 back into shares. Each month the value of dividends would grow. So the drawdown amount increases monthly and the reinvestment amount increases each month.
It becomes a perpetual cycle of growth and increased monthly income.
The 8 Income Streams
As I mentioned previously, there are 8 different types of income streams.
The aim is to have something in each category. Start small and let it grow. The Income Steams are
1. Earned Income
2. Profit Income
3. Dividend Income
4. Passive Income
5. Interest Income
6. Rental Income
7. Capital Gains Income
8. Royalty Income
The wealthiest people in the world have at least 7 types of income streams. How many do you have?
Why Multiple Income Streams are the Pathway to Riches
The Multiple Income Streams Strategy ensures that whatever is happening in the marketplace, there is always one, two or more income streams that thrive. They produce the income that is needed in difficult times. They also provide investment income.
The Income Streams that are down in value, due to the economic situation, offer great investment opportunities to grow both wealth and income in the future.
As the markets keep changing the income and assets ratios change to match the economy.
As an example, as I write this article, most countries are struggling with inflation. They are pushing up interest rates. Investors know how to tap into interest income that is increasing. This is providing more income each month to help with bills but also to buy assets that are undervalued.
Using a Multiple Income Stream Strategy creates Financial Freedom It takes the stress away from day-to-day living and provides an environment for building wealth.
It is the Pathway to Riches.