It is no longer news that we are living in a time and season of great height of business and financial uncertainty. Data on unemployment rate and job losses are frightening and alarming, showing that nobody’s job is safe.
Relying on one source of income can therefore be a highly risky path to tread in your quest for financial freedom. Friend, earning an extra income on the side is no longer optional; it is a necessity.
One of the major benefits of multiple income streams is risk diversification. Every sophisticated investor knows the importance of diversifying his investment portfolios; riding on the same wisdom, the diversification of your income streams is just as important, especially in difficult economic times. It has great potential to shield you from unnecessary financial risk and embarrassment.
Indeed, generating income from multiple sources helps you to be less exposed to risk. The more income streams you have, the more financial security you have. More streams of income equal more security.
No Need To Reinvent The Wheel Of Financial Success
Wealthy people have more than one stream of income. If one stream dries up, they have other sources of income to support them. Think of this scenario, if all your income is generated from your job and something goes wrong with the company you work for, then, you might surely be exposed to serious financial risk and challenging times.
Think about this scenario also, if the service or the product your company provides suddenly becomes obsolete. Or perhaps, one or some of your major clients stopped doing business with your company for whatever reason, and suddenly your only income stream stopped flowing. How challenging can this be for you? Indeed, it can be very challenging!
Multiple streams of income is a financial strategy to provide alternative income streams ahead of time, and thereby prevent you from experiencing financial dryness or downturn in your finance. This is primarily the wisdom behind the concept of multiple streams of income. It has capacity to hedge you against any negative eventuality that might come against your income source.
This concept can also be likened to you generating what I call oceanic wealth. One significant feature of the ocean is that it never runs dry of water. No dry season can run the ocean dry of water; this is because the ocean is fed from multiple sources. Water from every river, stream, lake and pond ultimately find their way into the ocean.
Wealthy people have always known and operated by this principle. Every wealthy person generates income from multiple sources. No wealthy person the world over has one source of income stream. Their wealth is created, fed and sustained through the concept of multiple streams of income.
How many streams of income do millionaires have?
Tom Corley, author of “Rich Habits,” studied the habits of millionaires during a five-year study of the rich and poor. Here’s what he found as it pertains to most self-made millionaires and their income streams:
1. 65% of self-made millionaires had three streams of income.
2. 45% of self-made millionaires had four streams of income.
3. 29% of self-made millionaires had five or more streams of income.
There is no need to reinvent the wheel of financial success. The greatest key to wealth accumulation is to find out how the wealthy created their wealth and do same for the same order of result.
It’s a new day for you.
To Your Prosperity
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