Multiple Sources of Income
In this world of possibilities, understanding the formula to wealth creation and sustenance is the key to living the good life.
Take the example of the world's richest man: Warren Buffet. If he had only focused on making his company a large one through their own products and services, the chances are we never would have heard of him. The key to his success was the multiple sources from where he was drawing his income, without having to do all the work.
Understand this: Multiple sources of income means that your money is working for you, not you wearing yourself thin trying to put your fingers in too many pies.
So, how do we accomplish the great challenge of sustained wealth without working so hard that we don't get time to live well?
Here's a possible scenario:
Begin with your current source of income, be it your job, your business, your freelance enterprise, BitCoin trading, etc. Now, focus on what you're doing with it. Are you spending almost all of it, resulting in hardly anything left in your bank at the end of the month? Then, you definitely need a better financial plan. It's not just about increasing the amount of money you're making so that you'll have more left over at the end of the month. It's about how you can adjust your lifestyle to plan for a bigger and better future.
If you've decided to become the next Uncle Scrooge, then the next piece of the puzzle is this: SAVE.
A set percentage of whatever you earn, goes into the money jar which is put into a safe, which is locked with 3 layers of locks, surrounded by tripwire and a moat filled with sharks and piranhas. You can only put money in, but forget about taking it out for a long, long, long time.
This personal money bank that belongs only and only to you is your ticket to name, fame and wealth. It's upto you when you want to cash in on that, so remember: the bigger the kitty, the bigger the reward.
Let's bring BitCoin into this conversation. If you were one of the smart ones who bought 100 BitCoins back when everyone was calling it a bubble, then hurray for you, you're a billionaire. But, if that's where your good sense ended and you cashed in on it already, and are now living in a sprawling mansion, partying all day every day, driving super shiny expensive cars, and not doing anything else, well, you're just another lottery winner. Not a billionaire.
On the other hand, if you cashed in on only 10 BitCoins, and used the other 90 to build a system where the money works for you, then congratulations! You're one of the smartest financial planners of the century.
Multiple sources of income don't only rely on how much money you have to invest into multiple streams, but also the kind of streams you choose. Doing due diligence on your investment options, understanding the risks and rewards, your own level of involvement into each and the longevity of the stream.
If you're a regular financial plan follower, you probably have mutual fund investments, a regular PF supplied by your company deducted from your salary, and a savings account. Probably even a real estate investment. This will give you financial stability, absolutely, unless the whole system crashes leaving you with empty pockets, but well, let's be optimistic here.
The wealthy financial plan follower will probably have something like this: regular job, part time business, invested in another business, multiple savings accounts with sources from multiple places, so if even one source dries up, the nest egg keeps growing, movable assets, and most important: investment in self-growth.
Food for thought: the more you work on yourself, the more quickly wealth comes knocking on your door.
Wrapping this up, let's help more people become healthy, wealthy and wise, so we can once and for all eliminate the vicious cycle of rich getting richer and poor getting poorer.
Thanks for reading!
PC: https://thecollegeinvestor.com/16174/6-ideas-to-diversify-your-income/