A typical person's cash flow looks like this:
Having this kind of scenario, do you think life would be very good with you? A single storm on your finances and surely you will fall. How many people do you know have this kind of cash flow and yet continue to complain that their lives ain't better? Actually it'll never be.
Why? let me share with you some secrets of the wealthy.
One of the obvious secrets (well, if it's obvious, then it actually isn't a secret anymore) of the wealthy people is creating multiple income streams. At the same time, the truly wealthy ones are those that have the discipline to save money and the habit of delayed gratification, which means removing the "wants" stream and those who have the better understanding of how money and debts work, thus minimizing or eliminating the "debts" stream.
A minimum of 5 income streams and you are good to go. Develop the habit of saving and delayed gratification, plus financial education and you're cash flow streams will look like this:
Now, that's something a financial storm can't easily break. If you are currently employed, the best time to build your other income streams is during your spare time. Are you utilizing well your spare time or wasting it by watching TV whole night or shopping?
A typical person can have at least two active income job/career. Active income is the income you receive when you work. Job - after 15th and 30th day of the month, you get paid. Business - you sell, people buy, you earn. Active.
After a person's 8 hour work, he can do a little side-line business to add up to his income streams. However, it is impossible for a person to have 5 active income streams!
- 8 hours JOB
- 2 hours Business (Buy and sell perhaps)
- 2 - 3 hours other side-line: Ex. Tutoring Koreans
- Another active business
- And, uhmm some night-life duty (?!)
All of the above = DEAD!!!
The key to multiple income streams is creating multiple passive incomes! Passive income is an income you receive even without doing anything. Sounds great? It sure is!
There are four ways of earning.
- You work hard for money
- People work hard for you
- Your properties work for you
- Your money working hard for you
Number 1 is active income, numbers 2 - 4 are all passive incomes.
People working for you. Sounds like the typical business, wherein, you hire people to work for you. You give them instructions and they will do what you want and at the end of the day, you collect the total earnings and you pay your people. You are now the employer, not the employee. Multi-level marketing companies also provide team-building wherein you hire people to work for you as business partners and by the time you have had a huge organization, you can earn the sweet reward of overriding commissions.
Properties working for you. Properties like your real estates. Put up a building, a hotel, or even a boarding house, you let it be rented and you collect your earnings every month. Your properties could also be your ideas, patents, or books, wherein you can earn royalty income.
Money working for you. Understanding the basics of growing money. Financial education and knowing where to invest your money that grows per year through interest rates and beating the increase of prices in commodities called inflation.
Creating a lot of passive income streams does not happen overnight. It requires patience and persistence and of course the burning desire. The fact that you are reading this now is a sign that you are interested to explore the beauty of earning passive income, and what you are doing right now is the RIGHT step! Research! Educate! Apply! and Declare!! Always READ.
The beauty of passive income is that there will come a time that you need not work anymore, income still comes in, and you have all the time in the world for your passion, your family, your loved ones and to God.
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