If you are not familiar with the term, then you should know that it is about the concept of having multiple streams of income coming from different income sources at the same time. Multiple streams of income is similar to being self employed, but instead of working one job, you have a number of jobs that produce income. Multiple streams of income can be achieved with any method or strategy. Some of the more popular methods include:
Becoming a virtual assistant is someone who does administrative tasks for another individual or business. A lot of virtual assistants work from home, so they have multiple streams of income coming in at the same time. You can earn as much as $75 an hour in some instances. You get payment based on the volume of work you complete for a client. This is a second job, and like the first, if you stop getting a client you will lose your income stream.
Having multiple streams of income coming from different sources is important because it gives you the ability to reach financial freedom sooner than expected. It is very common to put in 20 years of hard work into a business and then be laid off. When this happens, you have nowhere else to turn except to start looking for a new job. Putting off retirement for years is another opportunity that many people ignore. If you are going to achieve financial freedom, then you must set aside enough money each year to live comfortably.
Having multiple streams of income coming from different sources is a great way to build wealth even if you are just working for yourself. Most of us know someone who is well established in a certain line of business and has several stock options, a nice retirement plan, and even a vacation home. However, this person has only one stream of income. He or she does not have any other sources of income. If this person were to sell all of their assets and give everyone that inherited wealth a cut, they would indeed be able to live comfortably by now.
The first stream of income is the passive form of income. It consists of your regular wages that come in each pay period and then the residual stream that continues to grow over time. This can be something as simple as a pension check that covers you and your family’s basic living expenses. Another example of this type of income could be the money that is left over after your take-home pay has been deducted. This residual income is usually easy to replace and comes in the form of overtime or commission from someone else’s business.
If you have more than one stream of residual income, then it is probably more difficult for you to stay focused on what you want. One of the most common problems that people who have multiple streams of income experience is that there is so much else going on in their lives that they are tempted to do things that do not contribute to their main source of income. You must try to determine what you want to do first and foremost. Once you know what you want to do, you can figure out your best way to get to that goal.
It may be helpful to create additional passive streams. This can be done by diversifying into areas such as real estate, investments, stocks, the stock market, and even part-time work. By having multiple streams of income available, you have more opportunity to be able to focus on what is important to you. Your main goal should be to create sufficient leverage. Leverage is what allows you to increase your income or reduce your expenses. There are numerous different strategies that can be used to create additional leverage.
When you are looking to create multiple streams of passive income, you need to first focus on one stream at a time. Do not try to do everything at once as this will cause you to become overwhelmed. You can create multiple streams of income with a little bit of effort.
