The Rules of Multiple Streams of Income

How to create multiple flows of income

While almost everyone agrees that multiple flows of income is important to creating financial freedom it would seem that many struggle with how to do so. The most common mistake I see is that many give up their primary source of income prematurely for a second flow resulting in a second flow that is smaller and a primary flow that disappears. I know because I made this mistake.

When creating multiple flows of income never turn your back on the primary flow until the latter flows are so strong that nothing can possibly destroy or erode the added flows. Even then beware when ever ignoring that orginal flow because it is what made the other later flows possible. The old saying, ‘don’t forget where you came from’ may have more power than you think.

When I was 35 years old I had a very successful business that was about six years old and wanted to expand into an unrelated business of multi-family real estate. I, however resisted doing so until I added a second arm to my primary business that was not just solidly up and running but was operated independent of me and had matched the income of the first business. This created two strong flows at which time I then started the third business, Cardone Acquisitions. This new business had nothing in common with the other two focusing on the purchase and management of multi-family apartments. Cardone Acquisitions has since dwarfed the first two companies with over $300,000,000 in transactions and a goal to have one billion in holdings.

It has been 20 years now since forming the real estate business and I have still not left the first business that is almost thirty years old now. Even my accountant says to me, “at this point you should just focus on real estate.”

Hope this advice helps you in creating multiple flows so that you can have financial freedom in your life. Also check out my radio-internet show at GrantCardone.com/CardoneZone every Tuesday at 1pm EST live from Miami Beach straight to your phone where I cover business, career and finance.