We need money. We need money to pay bills and to buy things to live. However, most often we live beyond our means. If you can believe it, some 40-50% of American families are in this predicament. Money has become too easy to get. Yes, I said money is too easy to get. You can literally go into any bank, fill out a credit card application, and voila, you have an instant plastic ATM in your hands. I haven’t even mentioned the myriad of other credit cards available in the marketplace. This proliferation of cash availability has resulted in some dramatic cultural shifts since the 1900s. More often than not people overextend themselves while at the same time limiting all their money from one source, effectively putting all their eggs in one basket. As all good investors know, you must diversify your portfolio if you’re to mitigate the risk of return.
This is important for several reasons:
- If you lose your job, your income will be lower rather than eliminated.
- You’ll achieve your time trading dreams faster.
- You’ll gain greater flexibility and leverage in your life, as no one income stream will dictate your outcomes.
We, too, should treat our source of lively income generation no differently. We should diversify our income generation portfolio. Of course, most of us will have a primary source of income–our day job. However, it’s important to also establish other sources of revenue to support your revenue generation capacity. I’m not suggesting that people take on a second job. The last thing people need is more work to stress them out; rather, to establish self-generating income vehicles. This can include investments that pay a return to services and products that pay royalties. The key is to invest once in setting up a vehicle then letting the vehicle self-manage. Any income stream, no matter how small, is income! This can include things like drop shipping on ebay, become website affiliates, selling authored works, and so on. Don’t be fooled into believing that you need to put in place an income stream equal to your primary stream; this is not the goal. Change your perspective and you’ll realize that little things add up to a lot.
By generating multiple revenue streams, you’re able to make connections beyond your normal nine to five. You spread out your risk of lost revenue, but the key is to also live within your means, not fill the revenue stream void with expenditures. This diversity allows you to mentally change focus on “having” to work to “wanting” to work.
Are you ready to set up alternative revenue streams?
Feel free to share your answer in the comments.
Also, please visit Other Gurus to see what others are saying about their pursuits.