One thing we talk about a lot on this blog is the power of having multiple streams of income. They say that the average millionaire has seven streams of income, but who wants to be an average millionaire? Not I.
You should strive to have much more than seven streams of income. Having one stream is a sin against God. Never ever depend on one of anything for anything.
What does a stream look like?
A stream of income is just a check that comes in the mail each month. Mailbox money. I wan’t to live my life collecting monthly checks for doing nothing. I need as many checks as I can get.
It doesn’t have to be a job or even a side hustle. In fact, the best streams are the streams that require little to no effort on your behalf. No phone calls, no marketing, you don’t even need to show up or be known but money falls into your account. That is how a true millionaire earns his money.
Streams can be a book you wrote one time. Streams can be rental income from a property you bought years ago. Streams can be dividends from a blue chip stock. Streams can be partnership income from a business you bought. Streams can come in a lot of forms.
“Do the deal once, cash flow it forever”
You want your streams to come from work that you did ONE TIME put that continues to pay you forever. To do something like this requires a lot of thought energy though. Most of us have this ability we just use our thoughts to memorize Lebron stats or Kardashian gossip. They are already financial free though. They already have multiple stream of income and I’m sure they have much more than 7 streams. It’s best to put your effort in finding or creating those streams as opposed to finding butt cheeks on the gram, or finding out who got voted off the island last night.
Direct your streams: Give your streams somewhere to go
Once you get those streams you can use them for different things. Too many of us are breaking our backs working jobs that we expect to fund everything from our living expenses, investment capital, debt reduction, vacation money, all of that. What we have to do is shift our thinking and instead of thinking that you have to fit your life into one stream (what did I tell you about having one stream?), create streams for the multiple demands of your life.
This is truly novel thinking. An example of this Brandon Turner who bought a rental property at the birth of his daughter on a 15 year mortgage. At 18 his daughter will have a paid off home that they can sell and pay for college, or continue to rent and that will fund his daughters lifestyle through college. The better idea is to continue to milk the cow not sell it, but at least she has that option.
For me, I am still in in the effort for streams business while I build up my capital to fund more passive streams like business or real estate. What I do is I have additional sources of income. I will do consulting work in the off hours and use that money to fund my investment accounts. This allows me to put about a grand per week in my investment accounts without even touching working income. Another stream I have is my weekend money. I work on the weekend and use this money to make double payments on my car note which, aside from student loans, is the only debt I have.
The real estate that we own isn’t an immediate source of income because all rental income goes back into buying more deals. The real estate play is a deferred gratification move that when cashed out 10-15 years later will yield millions in net worth. The tenants fund retirement just like Brandon’s tenant will fund his daughters college education. That is a different blog for a different day but most people can’t do real estate like that. Most people want the instant bag.
The working income funds your lifestyle and the outside income funds your future.
The actual working income pays for my lifestyle, it pays for the roof over my head, my car and my food. This way I’m not trying to peel back to save out of the check because my consulting handles that for me. I’m not having to stress over debt because the weekend handles that for me. All real estate money gets funneled back into the deals because that is a long term net worth play that will pay off later but even that is a stream with a purpose. That will be cashed in later to fund retirement.
If you have a full time job and you are struggling to fund your investments or pay down debt it sounds like you need some more streams. If you have streams and you still can’t do that you need more streams. The beauty of America is there is no limit on the amount of money you can make.
If you are interested in joining any of our clubs and taking ownership of your life we would love to have you. Email firstname.lastname@example.org if you haven’t yet done your taxes and haven’t created an LLC to organize your hustle, do so now! Email email@example.com today!
Be great and invest well!