Cutting back on your expenses ALONE is not the ONLY answer to debt freedom. Creating multiple streams of income are essential to your household and future. Is there anything required to create other streams? Absolutely, there is a requirement for you to do something. For some odd reason, some individuals believes that creating multiple streams of income happens by osmosis. Time and work are required! If anybody tell you that they have a business model for you where you don’t have to do anything to get additional streams in motion, please RUN in the other direction.
Multiple income streams is a vast subject. However, it is imperative that you become empowered on why creating multiple streams are necessary. First, lets look at a couple of types of income streams. For example, rental property that is creating a profit. If your rental property does not put money in your pocket each month, it is a liability, not an asset. Second, investments that are creating enough interest earnings that supports your lifestyle above and beyond should you experience a job loss or are ready to retire. The problem with having all of your eggs (one income stream) in one basket is that once that income flow cease, it’s like being up the creek without a paddle. Be proactive, don’t wait until something happens or until it’s time to retire to determine what you will do.
Years ago, my husband and I were motivated to create another income stream because we were deep in debt. Above our employer paid incomes, we earned our first $Million$ by creating an additional stream of income that includes something called residual income; which is considered passive income by some experts. Income that will continue to flow whether we work or not; after having done the work upfront. Without an additional stream, we would be STILL going down stream out of control. For you, maybe it’s writing a book and over time receive money that trickles in as a result.
Investopedia (Diggs 2015) defines passive income as “earnings an individual derives from a rental property, limited partnership or other enterprise in which he or she is not actively involved.” Popular culture, however, defines it as “any money you earn while sitting on a beach sipping mojitos.” In other words getting paid for investing time to provide a service for our clientele years ago who are still paying for the service provided. Getting paid while you sleep. Does that mean you don’t have to do anything? Absolutely not!
What am I saying? Creating additional streams of income while you are employed gives you a plan “B” to fall back on should you experience an illness, job loss, death of a spouse or any other unforeseen incident. It can also prepare you for debt freedom or a change of professions should you desire to do so and the income stream supports it. Many people believe creating additional streams of income is a get rich quick deal. I have news for you, investment of your time and money is required, but it is well worth it. You will be able to do more than just pay the bills, but doing things that you have always dreamed of doing, giving more of your money and time than you have ever been able to give, spending time with your loved ones and traveling to places you may never have been able to travel. In essence, experiencing what your money can do for you, not what you can do for your money.
Lastly, social insecurity is not promised at retirement. Now is the time to assess the amount of money that has been projected for you upon retirement. Will it support your current lifestyle? When I see grandparents and probably some great grands as greeters at certain retailers; I have a feeling, besides doing it to stay busy, they are on their feet working all day because they have to. For those that are not close to retirement, you are in the best position ever to do something that can improve your future and that of your offspring.
Empowerment is the first step; action is required to cause change to happen. This is my view on multiple income streams and has not been written with any implications that you should quit your job. In addition, fully research ANY business model you decide to invest in before embarking upon any venture after reading this article. LMLDF is not responsible for any personal decisions made henceforth.
E-mail me at christineroebuck@livemylifedebtfree.com. Like us on Facebook!