Remember when families and couples survived on one income. Back in the 50’s and 60’s it was typical for there to be only one income. Today many are struggling with two incomes. Inflation and severe economic factors are challenging families to just survive, not even thrive. If this trend continues, imagine what the future holds for us: limited resources; limited incomes. Will two incomes be enough; certainly not. Take the time to prepare for the securing the future with a multiple streams of income plan. Creating multiple incomes flows into your finances can provide increased security for you and your family rather than to have an insecure future. This concept of creating multiple streams of income isn’t a new one but for many of us, it is just that – just a concept. It’s putting the concept into action that is the real challenge.
The rich have always used the multiple streams of income concept to maximize their income and security. When you use multiple streams of income if one income dries up, you can always fall back upon the other streams of income. If each stream of income continues to flow; you continue to have reliable income and continue to increase your wealth and your value. The typical person depends on the income from their job. To lose one income jeopardizes their survival. It could take years of hard work before they are able to return to stability. Financial stress has rippling effects into overall health and well being, relationship health and longevity.
Creating diverse sources of income gives you a backup to fall back upon, even if the income is not your main income strategy. Then, if one source were to evaporate your back up is already in place and automatically fills the gap. This provides you time to reassess, reorganize and regroup. And you haven’t been totally derailed and you are still on the happiness highway, safe and sound. The importance and soundness of multiple streams of income strategy is not lost on many today, therefore the want and rush.
Linear or Residual? Which strategy is your best fit?
Linear income is income that is earned on an hourly, daily, weekly or monthly basis. There is not a future or long term commitment attached to it; from your end or the payer’s end. This might be in the form of freelance work or a part time job. If you are a writer, web designer, graphic artist, there are some great websites for applying for freelance jobs. Some of these include: elance.com, freelance.com.
Residual income is an extra income where you work hard once and reap the benefits of the sale for many years after, the money just keeps coming in. This type of income can be built because each sale or addition results in increased residual income. It does involve work and persistence but if you choose the right type of residual income you will also be leveraging your time and resources.
Most of us earn linear incomes through our work or our profession. It is the type of income we are each trained to receive. Linear income is limited by the amount of time you are available for earning. There are only so many hours in a day. Yes, you can earn a good linear income but it requires consistent work. When people discover the power and the leverage available in residual income streams can secure the future: retirement. When evaluating residual income streams determine whether the program adds one new income stream or has built in multiple streams of income within it.
What about Internet options. Well, there are many opportunities on the Internet. Thorough evaluation is required as there are both good and not good programs on the Internet.
There are several things you should consider when you are evaluating any income stream:
- What is the true earning potential of the stream?
- What is the amount of time and work that is involved in getting this income stream working for you?
- What is the investment you have to make?
- Do you have to keep investing and what do you receive for the investment?
- Is this stream of income in alignment with your values?
- What is your level of commitment to achieving success with this income stream?
Earning additional income is for most of us an appealing idea. In creating new streams of income, while maintaining our existing streams of income, is for many a new idea. Residual income leverages your time and can maximize your income. Explore the possibilities of new income streams. Evaluate carefully and create new prosperity.
Donna Price is a business success coach working with Entrepreneur’s, business leaders and work teams to maximize results. She offers coaching, training, tele-seminars, speaking and facilitation services. Donna’s events are available at: http://www.compassroseconsulting.com/events.html
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