Do You Have "Multiple Sources Of Income" Flowing Into Your Bank Account?

Copyright © David Lazear

There's a well-known cliche that says “Don’t put all your eggs in one basket.” This is what is behind the concept of "Multiple Sources of Income". It is key to creating more wealth in your life.

Why are multiple sources or multiple streams of income important?

Most people have just one income source – their job. However, if you have only one source of income and that source dries up, you'll be in trouble. This has been dramatically demonstrated over the last year as the unemployment rate in the United States has soared to 10% and higher!

When you have multiple sources of income, you are assured that if one source of revenue stops producing profits for you, you still have money flowing into your bank account from other sources. Diversification is very important.

For example, lets say that in addition your regular job you have an online business that sells different products. At the same time you could own a couple of rental properties and be invested in the stock market. When you diversify your investments, if something fails you still have other streams of income.

The idea is not to jump from one thing to another to another and never settle down on anything. The idea is to work hard on one thing and, once it is generating profits for you, move on and get into a creating another income stream without neglecting the first stream.

So here's the formula: set up a stream of income, place it on autopilot, and let it produce profits for you while you are setting up another stream. If you repeat this process several times you'll eventually become financially free!

This is one of the true keys to wealth. Many people become rich not by doing something huge, but by doing many small things that work.