Imagine experiencing the level of financial freedom God describes in the bible.
I draw my inspiration from Ecclesiastes 11:1-6 NIV. It talks about developing multiple streams of income (V2- Invest in seven ventures, yes, in eight😉 as a key to financial prosperity.
Imagine being financially free, so you never have to suffer from the whims of people, economic downtimes, global pandemics, or other factors beyond your control.
That’s why you need multiple streams of income.
It’s a Biblical secret and a nugget of wisdom that we can all draw from and begin to implement today to help us eventually reach the financial freedom we desire.
What Does It Mean to Have Multiple Streams of Income?
It means having income from different sources.
It means financial security because when one stream of income dries up or is eliminated, you can always rely on the other source.
It means living the life of your dreams without the limitation of money.
Even though it takes a while to build several streams of income, it’s worth it.
Why we Need Extra Income
1. Helps you diversify your income
Are you reliant on one source of income? Think again.
What if one day you lost your job or something happened to your primary source of income?
In 2016 my former employer downsized and half of the team (including me) lost their jobs.
Then, my daughter was 1.5 years old, and the second baby on the way. I had huge debts whose repayment depended on my salary. My growing young family and other major family projects depended on it.
We had to learn how to live on one income – my husband’s income.
Now, we have the coronavirus global pandemic, businesses shutting down, people losing jobs, while others are having to take pay cuts.
What would you do if any of these misfortunes befall you?
If you work towards building side income streams and diversifying your income, then you will never have to lose sleep over such misfortunes.
Diversifying your streams of income creates a backup financial plan for you and your family.
2. Pay Down Debt
Debt could be one motivator for creating multiple streams of income.
Maybe you make a good salary with your day job, but is it enough to afford you a life you want and pay off debt fast?
No one wants to be buried in debt forever. So making extra money on the side is the quickest way to pay it off and start your journey to financial freedom.
For example Sarah Titus paid off thousands of dollars every month from side income streams. She is able to single handedly raise her family from multiple streams of income.
It may seem impossible to you, but I promise you it’s not if you work hard towards your side income hustles.
3. Reach Financial Freedom Quickly
Reaching your financial goals can be difficult, especially when your bills are choking.
You find yourself having to take salary advances, loans, or maxing out your credit card just to survive through the month.
How can you even think of financial freedom when you can hardly make ends meet? Your dream of financial freedom remains just that – a dream.
Whatever goals you have, making extra money will help you reach them faster.
Cutting your budget or living a minimalist life is excellent, but making more money is even better.
It allows you to save more, and still enjoy other luxuries. You can only cut your budget by so much, but the potential to grow your income is endless.
4. Explore your creativity while testing out business ideas
If you’re interested in starting a small business, first test it out as a side business to see whether it’ll work out and if you can make money.
It allows you to thoroughly test the waters while still having the stability of your day job.
I missed the opportunity because I started my financial content writing business when I lost my full-time job. It was stressful growing a business and worrying about making ends meet at the same time.
Starting a side business while working full time takes a lot of stress away.
I turned my freelance writing into a full-time business. Now, I have the time to create other streams of income such as blogging, affiliate marketing, and creating online stores – one at a time.
What are the 7 streams of income for millionaires?
If you’re thinking about diversifying your streams of income, you may be asking yourself, “How can I get multiple streams of income?”
It’s pretty straight forward, and most of us have multiple streams of income just that we don’t realize it.
However, don’t expect to generate tons of income from any of them if you’re just starting. Start by maximizing your income generating potential.
The truth is that millionaires are no different than anyone else. The reason they’re able to generate so much wealth, is because they have multiple income streams.
Research shows that the average millionaire has 7 different income streams. Yes, seven!.
Common streams of income are;
- Earned income – money you make from your full-time job/ career, or self-employment. You trade your hours for money but it’s limiting because you can only do so much in 24 hours.
- Profit/Business income – money you earn from selling a product. The business could be online or physical. Examples of business income are fast food restaurants, grocery stores, online stores etc.
- Dividend income – the money you make from investing in a company. You earn dividend income after the company you have invested in distributes its earnings to shareholders from stocks or mutual funds you own.
- Interest income – the money you make from saving. For example interest income from CD’s (Certificate of Deposit), savings from carrying a note or from your bank savings account.
- Rental income – money you make from real estate investments. It comes as a result of you owning an apartment or commercial real estate and renting it out to someone else.
- Capital gains – money you make from the sale of property or an investment in the stock market.
- Royalty income – money you make off a piece of work sold to another company. You make money by allowing someone or company to use your property such as patents, copyrighted works, natural resources, or franchises.
Shiny Object Syndrome – Wrong Way to Create Multiple Streams of Income
Some people play the money game because investment and business strategy excites them, and the process of building wealth is adventurous.
They’re willing to play the multiple income streams game because it’s the next logical step—a new challenge.
The wrong way is the chase after every shiny object.
You get all fired up to launch a new business, and before you learn it inside out, you jump to the next business idea- all in the same few months.
It’s not a smart business strategy to take on risk recklessly, compete in fields without adequate research and preparation. Plus spreading your resources too thin will only set your up to failure.
So what’s the right way?
How to Create Multiple Streams of Income – The Right Way
If you want to create multiple streams of income, then it’s essential to follow a proven process that’ll maximize your odds of success.
Here are the steps to follow.
Step 1: Master of your first stream of income
Pick one stream of income from your passion or hobbies. It may be freelance writing, real estate investing, owning an online store or offline business.
It should be something you’re excited about and would do it whether you make money fast or not.
Why? Because your first additional stream of income will be the toughest.
It allows you to develop your fundamental skills of running a business, create enough cash flow, and overcome personal obstacles to success.
Your first stream of income is where you get most bumps and bruises. So choosing a passion will increase your odds to persist long enough to clear all the hurdles and succeed.
Master your first stream of income and leverage the skills you develop to create other streams of income.
Step 2: Create a system for the first stream of income
After you’ve mastered your first stream of income, then create a system so that it no longer competes for your limited time and attention.
There are two ways; time leverage (create a human team) and technology leverage (digital employees).
Systematize your first stream of income so that it almost runs on auto-pilot – without requiring your time.
It becomes a source of residual income and cash flow.
Step 3: Create additional streams of residual income
Systematizing, your first source of income creates a residual stream of income without your involvement.
You create free time and energy to add multiple streams of income.
Intelligently add additional revenue streams that leverage the knowledge, skills and network you created in the first stream of income.
The critical point is that you’ll not be starting from scratch with the second income stream.
For example, a successful digital marketer can leverage his marketing skills to launch their blog, online store and create a residual income with minimal effort.
Another example, Elna Cain one of the best digital marketing writers started by writing for a variety of major digital brands and was able to earn a full-time income as a part-time freelance writer.
She then leveraged the digital marketing skills she had gained to help thousands of newbie writers make their first $ 1000 and go on to make a living from this.
She also leverages the same skills to launch several blogs.
Similarly, I worked on my freelance writing before leveraging my content creation into blogging. I’m now leveraging the same skill set into creating online stores and later into the information publishing business.
Notice the pattern. Each of the above successful examples developed multiple streams of income by learning the base skills in one stream. Then leverage those skills later to create additional streams.
They learned to walk with one stream before running with multiple streams of residual income.
I challenge you today to examine successful people with multiple streams of income, and see if they violated rules of walking before running.
Every “multiple streamer” built their success from one stream they were passionate about.
Step 4: Leverage existing resources
Leveraging your existing resources takes less effort to operate each additional stream of income. You build each additional source of income upon the same foundational resources.
It is almost suicidal to create multiple streams of income simultaneously. You only create mayhem out of it instead of leverage – especially when you’re just starting.
Because you have no base resource to build upon, it makes no sense and no justification for the problem it creates.
Create an Income Stream
Think of different sources of income you’d like to develop.
Write down specific goals and tasks, and get started on one today. Then keep it up, in tiny increments, day in and day out.
“Sow your seed in the morning, and at evening let your hands not be idle, for you do not know which will succeed, whether this or that, or whether both will do equally well.” Ecclesiastes 11: 6
Does this word resonate with you? Do you make extra money? Why or why not? If so, please leave a comment below! I’d love to hear from you!