Multiple Streams of Income is Key to Financial Freedom
Did you know that the majority of multi-millionaires have seven or more streams of income. Yes, that is correct - Seven!
Still have some work to do...
Having that many streams of income sounds great, but what it really had me thinking about is the majority of society only has one. One income - generally a job, which you can lose to a layoff, firing, etc. Putting someone at zero just like that.
Additional Streams of Income
It's important to have more than one stream of income for several reasons:
- It's prudent (if you lose a single source of income now you have to worry about putting food on the table)
- You diversify your risk (if you have a sole niche business that relies on the rules of larger re-seller, i.e., AMAZON, one change to their rules could halt that income stream)
- You can reinvest the proceeds you don't need to live on into other potential income producers (fixed income, rental property, etc.)
ExampleCurrently I have three streams of income:
- Rental Properties
- Small equity share in a business
Outside of that I'm always looking at business opportunities and investments that generate income. Most recently I'm digging into an oil and gas equip refurbishing operation that takes on investors and cuts a piece of the profits to them on the equip resale once it is re-certified. Not something that is normally in my wheelhouse but any opportunity is worth looking at in my opinion. Especially when chasing those seven streams!