Want to build wealth? Without also developing multiple sources of income that’s unlikely to happen. Most people already realize it’s a good idea to have multiple revenue streams for any number of reasons. Some of these reasons include the fact that it will protect you against financial catastrophe if you lose your job, and you’ll obviously being giving yourself greater earning power. It’s also possible to build revenue streams that you’re genuinely interested in and passionate about.
At the same time, it does require time, energy and general effort to start building more than one source of income, and you will also have to give the proper attention to them once they’re up and running as well.
The following are some essential tips that can make it easier to start building how you make money, even if it initially seems overwhelming.
Make Sure You’re Financially Secure
Before you can look beyond one source of income and branch out into new avenues, you need to have some financial security built up. This isn’t a glamorous tip, but it’s a necessary one. Once you have a steady income and some savings, it becomes much more manageable to then move onto cultivating other revenue streams. This also gives you the ability to be more adventurous and possibly take more risk with your other income opportunities.
Experiment With Risk
If you’ve followed the first tip on this list, it then becomes easier to move on to this one, which involves a willingness to take risks. A good strategy to manage more than one source of income is to balance some risk with safer opportunities. According to Timothy Sykes, a penny stock trader who blogs and mentors people on becoming a millionaire, risk is an essential component of any financial strategy.
Balance Types of Income
Mr.4HWD, a financial blogger from TheFourHourWorkday.com, advises his readers to balance not just risky and less risky income sources, but also to pull multiple revenue streams from active, semi-active and passive sources. For example, your active income could be your blog or even your day job. He characterizes semi-active income as things like real estate and even bonuses received for credit card sign-ups. Passive income includes bonds and CDs. This gives him diversification and provides income-earning opportunities that don’t require constant work and attention.
Set-Up One Stream At a Time
The ultimate goal is, of course, to have multiple streams working for you at all times, but an empire isn’t built in a day. Start with one stream at a time, and give it the time and attention it needs to start thriving. Once you have built it up to the point where it is actually earning you money, then you can move on.
Be Willing to Let Things Go
As a final word of advice for people looking for multiple revenue streams, there are times when something might not be working, and you will need to end it. If it turns out to be something you don’t like, or that just isn’t performing be prepared to end it.