You can easily find MANY people on all social media platforms of how you can create, build or even buy multiple income streams. I have even shared some of my own ideas on the topic.
BUT WHY? Why is there so much content to be found on how to create multiple income streams. In this post (and also in a video on my channel), I will cover some ideas around the why.
One income exposes you to risk
I’ve used this quote from Derek Moneyberg before, but it rings so true:
So how many of us are certain of our positions at the place that pays our salaries? I can’t remember where I saw it, but it is also said that you should milk you 9-5 income for all you can.
The idea is that you use the income you know you will get at the end of the month (as long as things go smoothly) and channel that income in ways that cover your expenses, but also create multiple pots of income, if you will.
Structure your budget to create multiple income streams
So for example, a 50/30/10/10 split gives you 50% of your after tax income to cover your day-to-day living costs (including a place to stay and transport). The next 30% should be used for investments and business deals. The last 20% should be split into retirement savings and generosity toward the world around you – of-course this is after you’ve saved up an emergency fund and paid off bad debt.
See more on structuring you budget in this post: Personal Finances for Beginners
The really rich have multiple income streams
Statistically speaking, millionaires have an average of seven income streams. I guess this is the biggest why – everyone wants to be millionaires.
Some of my favourite wealth authors include Robert Kiyosaki, Ann Wilson and Dave Ramsey. They each have their own spin and flavour on the topic of wealth and money, but they seem to say similar things.
First you have to understand the flow of money, ie income and expenses, debt and interest and so on.
Then you have to tell your money where to go, ie create and stick to a budget. And you have to this with all your income.
Ultimately, you must put your money to work so it works for you, instead of you working for it. As Robert Kiyosaki says “the rich don’t work for money”
Money is a great servant, but a bad master.
Francis Bacon
Money doesn’t make you rich though
When you think about the word ‘wealth’, you most likely immediately think lots of money, big houses and fancy cars.
The reality is that, money alone doesn’t make you rich. This is because there are actually 4 types of wealth.
So genuine wealth consists of all four of these types of wealth and that doesn’t necessarily mean you have to be the next Jeff Bezos or Elon Musk. I believe that you you live on less than you earn, you are already financially FREE.
Financial Freedom and Financial Independence are two different concepts and you can click on the link if you’d like to find out more about that.
These four types of wealth is another good reason for generating more than one income, because if you earn income from different places, it gives you a little more of the other three types of wealth. Click the picture below and download ‘The Genuine Wealth e-book’ if you’d like to find out more about this concept.
Quality of life
It seems that money is sought after so people can create quality of life for themselves and their loved ones, but is this really the truth?
I believe quality of life is more a case of learning to enjoy the journey along the path you choose to walk. In other words, accepting your circumstances for what they are and then starting your journey from where you are.
The journey is far more fulfilling than actually reaching your destination since there is always another hill to climb, or problem to solve or need to fulfill. We don’t live in a perfect world yet, and as long as that is true, we will always on our way there.
So even when you have been able to achieve financial wealth, what you do with it and how you use it is more important.
Make a difference
As far as I am concerned this is the most important and fulfilling reason to achieve any level of wealth. In fact, I’d like to go as far as to say that this is where you achieve genuine wealth.
When you decide that you have enough money, social fulfillment, physical health and time on your hands, you can start making a difference in the world around you. Be generous with your time, social connections, money and yes – your physical presence as well.
Closing thoughts
So work hard. Achieve your goals. Become financially wealthy, but don’t neglect or downplay the value of your social, physical and time wealth, because all four are equally important if you are to achieve genuine wealth.
In the next few days I will also publish a video on YouTube on this topic, so please go check out Weide-Market on YouTube as well
