Creating Multiple Streams of Income

Multiple Streams of Income

by Ryan

One of the first investing/business books that truly influenced me (I was in middle school at this point) was Robert Allen’s Multiple Streams of Income. Robert Allen is a huge proponent of aggressively building wealth through business creation, real estate investing, and utilizing the power of the internet. Although many have mixed emotions about Robert’s teachings I’ve seen first hand some of his concepts work and do believe in the concept of creating multiple streams of income.

What are multiple streams of income?

Each source from where you earn money is a stream of income. If you have a job and that’s your only source of income you only have one stream of income. If you have two jobs you have two streams of income. Therefore each stream is a source of income that’s completely detached from your other streams of income.

How to generate multiple streams of income

You can generate more streams of income by not putting all your eggs in one basket. For someone who’s just starting out their streams could look something like this:

Job #1 – Your full time job
Job #2 – A part time job
Online business income
Writing Articles Online
Real Estate Investment(s)
Stocks/bonds

Granted this person would be pretty darn busy, but they’d have six streams of income! If they lost one stream they wouldn’t go broke tomorrow because they have other sources of income coming in.

The whole idea of creating multiple streams of income is to alleviate your risk if any of your sources of income were to suddenly dry up. If, for example, you lost your job, would you have any other income coming into your life, or would you be pretty hard up for money?

Having multiple streams of income is a topic that I think is super important in personal finance, but isn’t touched upon all too often. So if you only have one source of income in your life I’d highly recommend starting another through passive income streams or by starting a business or freelance work on the side.

How many sources of income do you have?

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{ 7 comments… read them below or add one }

Get Happy Life January 3, 2011 at 12:07 pm

I love the idea of having multiple streams of income, but from personal experience, I have found out that secondary streams of income (if we consider the full time job a primary) usually need much greater effort to produce profit.

As a result, I often enjoy more the few dollars I made from other streams rather than the money I get from my full-time job
Get Happy Life´s last blog post ..Why You Should Celebrate New Year’s Eve

Little House January 4, 2011 at 6:26 pm

I have multiple streams of income, and yes it keeps me busy! However, some of my streams aren’t full-time jobs, even my “part-time” job is pretty flexible. Come to think of it, my full-time job (teaching) offers me lots of vacation time to devote to my side-streams of income! I think balancing all of these streams is the key to making sure they actually create income and not just extra work. ;)
Little House´s last blog post ..Another Reason to Love Renting

Get Happy Life January 4, 2011 at 6:48 pm

I was just wondering, what are your side-streams of income ?
Get Happy Life´s last blog post ..Most Influencing Happiness Factors Money Can Buy

Kim January 14, 2011 at 10:13 pm

Creating multiple streams of income really makes sense. Either it is online or offline but it ensure you financial safety. Even online business can have different models and so different potentials. You don’t only learn more things but survive in tough time if you’ve seen.
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Gregory January 27, 2011 at 11:00 am

I agree 100% that multiple incomes are the only way to go it will take some organization skills to say the least,but it is possible and it falls in the category of you only get out of it what you are willing to but into it.

Tanja January 28, 2011 at 5:34 am

Thats the way it should be. If you put all your eggs into one basket and then there comes a crisis in that sector you will be f…ed… so get different streams of incomes. It will be easy as most people are multi-tinerested/talented anyway. Do what you like and have fun.
:)
Tanja´s last blog post ..I WANT TO KNOW!

Keith Dennis March 9, 2011 at 4:06 am

Great post! I read the book too as well as Robert Kiyosaki’s Cash Flow Quadrant. In the Cash Flow book there is a story about building pipelines versus hauling buckets right in the beginning of the book. That story changed my life and the knowledge about multiple streams of income has helped so much. It can be done if you think of building pipelines of income instead of you physically working for each extra dollar. Build a system to create the money coming in and then just collect the money! Once your systems are up and running they really don’t take much time to operate.
Keith Dennis´s last blog post ..IRA Income Protection Strategies for the Not So Safety Conscious Investor

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