All About Having Multiple Streams of Income
“Invest your money in foreign trade, and one of these days you will make a profit. Put your investments in several places — many places even — because you never know what kind of bad luck you are going to have in this world. No matter which direction a tree falls, it will lie where it fell. When the clouds are full, it rains.
If you wait until the wind and the weather are just right, you will never plant anything and never harvest anything.”
Statistically, the average millionaire has seven streams of income. Building wealth is an intentional act and doesn’t require putting all your eggs in one basket. Rather, it includes risk taking and diversification of investments.
Having a single source of income will neither afford you your dream lifestyle nor help you attain your financial goal. Even if it does, visualize how much better it could get with more money. You need to stay focused on increasing your cash flow and gaining enough security for yourself and family for possible difficult days ahead.
Active Source of Income
Active income is the income earned by actively partaking in work. This is great and may initially be your means of saving money to create passive income. Kudos to having a job and a side hustle. These are both active sources of income. Now let’s step it up a notch.
Passive Source of Income
If you don’t find a way to make money while you sleep, you will work until you die. — Warren Buffett
Imagine a situation where you’re unable to work temporarily or permanently. Better still, imagine making money while sleeping or on vacation. Simply put, imagine making money around the clock whether you are actively involved in work or not. This is the pleasure derived from having a passive source of income.
Accept that you have a total of 24 hours each day to do great work and create miracles. There’s only so much active work you can do each day. Yet you can earn more money indirectly via passive income like rental fees, dividends from investments or employ other people to work on your passion projects. Make it a point to create something which works without your constant involvement.
In conclusion, find ways of making money outside your work schedule. Get ready to try new things. Be bold.
Originally published at Dzifa Mensah.