Multiple Income Streams
Don't Put All Your Eggs In One Basket
Imagine a small stream flowing in your direction, bringing to you some money. All you have to do is reach out and grab the money as it floats by. Imagine a number of these streams flowing together into a river, to bring you even more money. Now imagine a number of these rivers merging and opening the floodgates, unleashing all the financial wealth you have ever dreamed of possessing. That’s the essence of multiple income streams.
How big can you compound your thinking?
There is a dilemma, a conundrum that is raised by this concept that everyone needs to resolve. What works for one person may be too challenging for another. The question remains: “Is it better to focus on only one activity and get to be an ‘expert,’ or should we spread ourselves in several directions?” No one answer is right for everyone.
Consider that “No one person, or investment, or activity, should ever make you or break you.” If “all your eggs are in one basket,” aren’t you are at the mercy of the success of that venture or relationship?
Scattered focus seems to offer a possible solution. Two wealth building concepts are clearly in opposition to each other: focus The 80-20 rule / Pareto’s Principle and the power of momentum. Common sense suggests that your core business, your expertise, should be your primary focus most of the time. There will be lag times in your business, however, when things are seasonally slow, and perhaps your time will be better spent in another endeavor.
Understanding how “cycles” affect your business is one of the most important things you need to study. It defines cash flow, payroll, inventory, and a host of other factors. Become an expert on your business. Get it running smoothly, and put it on auto-pilot (stream number one). Then focus on beginning another business that can be built and run in the “off season” of your primary business (this is stream two). Once stream two is started, you are utilizing the concept of multiple streams of income. Continue as your talents, time and expertise will allow.
Like a good sports team, each income stream has their own role to play for the benefit of all.
Remember that one of these businesses should be a reliable income producer, essential for your financial survival. Other businesses you build, however, should have the potential to make you rich if that is your goal.
A word of caution: always keep your eye on your primary business; survival comes first unless you are an extreme risk taker!
Apply This Concept
If there is economic uncertainty, and Banks are failing and losing solvency, make sure your assets are protected by staying within the current limits of FDIC protection at any one institution. You also may want to have some of your assets in cold hard cash for an emergency.Laws of Wealth
