“Never depend on a single income. Make investments to create a second source” – Warren Buffett
We’ve all heard the saying “less is better.” Although this may be true, financial experts convey a different message. They believe that one should have multiple streams of income, which means to diversify your ends or create a variety of cash flow.
Although most people have the desire to survive, fewer people have the desire to accumulate more money than is necessary to live beyond their comfort zones.
According to LinkedIn, the average millionaire has 7 streams of income. So, if one stream of income dries up, then other streams of income can recover the loss.
Here is an example of what multiple streams of income may look like.
Benefits of Multiple Streams of Income
1. Creating multiple streams of income decreases financial anxieties of having only one job. In times of economic hardship, having multiple streams of income can provide a sense of security.
2. Creating multiple streams of income for yourself can provide opportunities to accomplish additional life goals. “Your vision may be too big for one paycheck.” – Steve Harvey
3. Multiple sources of income can increase the luxuries of your lifestyle. For instance, if you love to travel or shop, creating several income sources can help you accomplish desired goals.
4. Multiple streams of income will allow debts to be paid off at a faster rate than normal. The reward of having multiple incomes will create financial freedom!
Boss Up
The next step is to decide how you will create your next stream of income. Do not be afraid to think creatively or think outside of the box. Creating more ways to make money will generate a snowball effect of wealth. Where will your next stream of income come from? Meet the challenge- create your pie chart as your multiple streams of income grows.
