7 Streams of Income
Is it wise to focus on multiple vehicles to generate cash flow, or should you focus extra hard on just one? While there are different views on which makes sense, let’s note that the average millionaire has 7 streams of income. so, maybe focusing on multiple things has an upside?
While the wealthy have several streams of income, this does not mean that they spend all their time working. Remember, the rich work for assets and as much passive income as possible. Lets consider which vehicles are considered income streams and relate it to real life. You can have a job, second job, third job. . . Well, that’s what most people think of when they consider making money. Some people may look at stocks, starting a business, or a side job as a source of income. But lets get down to it, in all those scenarios, except maybe stocks, you have to put in a decent amount of your time, which is limited. So, what are some good ideas to get you closer to that 7 streams of income? . .
- How about real estate? This is not as hard to get into as you think. For me, I got my license to sell real estate. Is this necessary? No. But it puts me in good connections. You can also flip houses or rent houses. Take the money from your active income or jobs to pay for this and start work in real estate.
- commissions from becoming a realtor is fairly straight forward. You sell a house for someone or help them buy it, you get a commission for helping them do so. This need not be a 9-5 kind of job, many people keep their current job and have their license as a secondary option for income.
- Flips are something that many people love to watch and say they would like doing. Made popular on networks like HGTV, people are drawn to redoing houses and for money, some of the large profits shown on the shows. While not always typical, you can make some good money flipping houses if you know what you are doing.
- Rentals are much closer to passive. Everyone has had, or has heard of someone having bad rental experiences. “but what about having to fix toilets at 2 a.m.?” Does this happen? yeah it could, but if you do it smart, you want more than a rental property or two and this is attainable by hiring property management for around 10% who takes care of everything like that for you. Just do you homework and youll be fine
- start an ecommerce business. This is not as hard as it may seem. The hard part is mostly in starting it up. Pick a good product with a good amount of followers and list on FBA. Sure, there are more details, but in my opinion, there is no better way to gain visibility of your products. .
- sell used books which you can pick up for a dollar or less sometimes and resell them online for multiples of that dollar. You can do this with any items, but books yield great returns. It is called retail arbitrage or online arbitrage
- Sell your own physical product. You can have your own product manufactured through suppliers at Ali-Baba and sell them on a platform such as ebay or amazon. This requires good work up front and some advertising, but this is easily doable and you need to reorder on a regular basis, fairly easy.
- Affiliate links. Maybe you just want to promote things without buying them. You can create a website, super easy. then just add affiliate links in it to promote a product and collect a comission when people click on and buy it. This attainable through youtube, social media, websites etc.
- Dropshipping. This is a popular way to promote products with little capital barriers and minimal time to get going. Once you list your items, throw it into a software like DSM Tool and it will monitor changes for you. When an item sells on Ebay, you get notified, paid, purchase the item, and have it sent to the customer. You collect the difference.
- Do Network Marketing, this is a more social line of income. This has gotten a bad rep because so many people have got burned. But find a product you’re passionate about, sell it because you believe in it and you will be fine.
- Trade stocks and options especially. Most people know about stock trading but haven’t heard of options. Options reduces your risk while maximizing your chance of success. I’d recommend taking a course on this subject and getting started small.
There are tons of ways to create an income more passively than getting a second or third job, these are just a few. and all things I have or continue to use. The point is to diversify and have your assets work for you. BTW, I don’t have time to do all this and neither do you, I can hire Virtual Assistants to do the majority of the work and maximize my returns for me.
Put in the time up front to start learning (this site is a great resource) and get moving. Make a plan on how to reach 7 streams of income. Here is an example of the ones I employ
Real Estate Stocks E commerce
commissions Options Trading Affiliate Marketing
Flips 401K FBA Sales (Books mostly)
Rentals IRA Drop Shipping
Private Label Products