Did you know the average millionaire has 7 different streams of income? According to most experts, making money through multiple streams of income is a huge factor in how financially successful you become
I’m a big believer in the concept. In fact, the first time I heard about multiple streams of internet income I was blown away by its obvious ability to build wealth and sustain it over the long term.
Because it’s such a powerful concept, I thought I’d share it with you in my first podcast!
My Self, I am Shabbir I carry 10 years of corporate experience and also a co-founder of theinternetincomeacademy.com
Multiple Streams of internet Income are the Key to Wealth
Earning money from more than one source is one of the great keys to wealth, especially when you’re able to generate passive income streams that don’t require a lot of time and effort on your part (more about those later).
I’ve been earning money from multiple sources for several month’s now, and I’m always on the lookout for more. I’m especially interested in earning more passive income
In this podcast I’ll explain about:
- Why you need multiple streams of income.
- Why earning money from many sources is critical to building wealth.
- The 4 types of income you can earn, and why some are better than others.
The different streams of internet income that I personally have
The term Multiple Streams of Income sort of speaks for itself. It’s the concept of earning income from more than one source at the same time, thus multiplying your earning power and creating a more secure income than if you only had one source of income.
Why Do You Need Multiple Sources of Income?
Diversifying your income through multiple streams is extremely valuable, because if one type of income dries up, you still have other sources of money coming in instead of losing your entire income altogether.
Think about it- if your entire income is from an employee type job, then you’re putting yourself at risk. If your company decides to eliminate your job for any reason, then you have zero income until you find another one. Thus, you have very little control over that stream of income
Less Risk, More Control
Getting your income from several sources helps you to be less exposed to financial risk.
But beyond that, when you have more than one stream of income, you’re much more likely to create exponentially more income than if you only make money from just one source.
It allows you to have much more freedom and control over your financial life than if you earn income from only one or two sources. That’s crucially important in today’s economy, because the nature of work is changing quickly
The Nature of Work is Changing
I believe diversifying your income with multiple streams is more important than it’s ever been. The workplace is changing rapidly due to technology, globalization, and other forces you’ll never be able to control.
In the coming years, millions of workers are going to be displaced by incredibly intelligent technologies, such as AI (artificial intelligence), that are becoming more incredible every day. If you want to be one of the few who know how to prosper in the ever evolving tech revolution, you need to be prepared.
Multiple Sources of Income Keeps You Protected
Millionaires understand that when you have money coming in from multiple sources, the more protected you are during a downturn, job loss, personal health crisis, technical innovation, or anything else that has the potential throw your income for a loop.
If one or two sources of income dries up, you still have several others to keep you afloat while you rebuild.
The Cashflow Quadrant
I first learned about the different types of income in Robert Kiyosake’s book, The Cashflow Quadrant. In my opinion, it’s one of the best books written about the different types of income you can earn, and which ones are the best. The first time I read this book it totally blew my mind! I’d never seen these concepts taught anywhere before.
Kiyosake’s 4 Types of Income
Kiyosake teaches that the four types of income are:
- Employee Income
- Self-Employed Income
- Business Owner Income
- Investor Income
Employee income is the type that almost everybody earns. If you have a job working for someone else as an employee, you’re making employee income.
This is the most basic type of income, and the most risky too.
Why is employee income risky?
It’s because all the power rests in someone else’s hands. If the person (or people) in charge decide they don’t need your services anymore, then you’ll be let go. If this is your only income, you make no money until you find another job.
Income from self-employment is a step up from employee income. Of course, when you’re self-employed you can be your own boss, which has its advantages.
When you’re self-employed you call the shots. Your success depends completely on you and your ability to do good work for your clients.
However, the down side of self-employment income is that everything depends on you. If you get sick or want to take a vacation, you don’t make any money.
This is why a lot of self-employed people are over-stressed and overworked. They have a ton of responsibility and get little time off to relax.
Making all your money from self-employment can be so much more rewarding than employee income. But it’s still risky unless you have other streams of income as well.
Business Owner Income
As a business owner you have a greater capacity to generate a huge income. Unlike the self-employed, business owners don’t do all the work themselves.
Business owners hire other people to do most of the work while they run the business. When you’re able to manage your business and let other people do the work, your business income grows exponentially over what you can accomplish when you’re self-employed.
If you get sick or want to take a vacation, the business continues to operate without you while you still earn money from it. It’s a much less risky position to be in than being an employee or self-employed.
Investor income is the pinnacle of income. Income from investments is passive income that you don’t have to do a lot of work to generate. When you have enough money to live off your investments, you get to live life a lot differently than everyone else.
Investors make their money investing in other people’s businesses, dividend paying stocks, rental properties, and other investments that require a minimal amount of work.
People in this category have unlimited earning potential. They can build wealth much faster than people in other income categories, especially if they reinvest much of their earnings into other investments.
My Personal Income Streams
Now that I’ve introduced you to the 4 types of income I thought you might be interested to hear about me and the income streams that I personally benefit from. Even though I don’t make huge money from different sources, I’m in the process of creating them, out of my four ventures two of them are live now and two of them are in progress to launch
Here’s a list according to each type of income:
- I work for a one of the reputed top IT Company (income working 5 days a week at one office is my Salary)
- Income from running my blog- this includes making money from affiliates and fee from mentoring to students ( 2-4 Hours in a week)
Business Owner Income
- Me and my partner run’s the e-commerce store in Dropship model
- Stocks- Some of the stocks and mutual funds I own pay a dividend that I reinvest into more shares to build wealth faster.
One thing I came to understand years ago is that as a IT employee, making an income that only my two hands can produce has it risks and limitations.
Don’t get me wrong, I love being a IT employee and I make a good living compared to most people.
However, my goal is to have the freedom to work less hours, take time off when I want, and earn income without having to physically produce it with my two hands every single day. This is how financial freedom is built!