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MULTIPLE STREAMS OF INCOME on Biteable.

Last week we discussed the criticality of finding good mentors. One of my favorite mentors taught me the value of this week’s topic- Multiple Streams of Income. My Uncle, a public school teacher in NC, {NC, my home state, pays educators well below national average.) through hard work developed the following multiple income streams: Teacher’s Salary; Cash From 31 Rental Homes; Farmland Leasing; Timber Sales; Land Sales, Bank Interest, Equity Ownership. After retirement, his salary was replaced by pension and social security. Essentially he had nine diverse streams of income and became a wealthy man. But more important than his wealth, Nathaniel Boney was the kindest most caring man I had the honor of being mentored by. While he never taught me in the school classroom, he taught me in life’s classroom mentoring me in investments and the importance of giving!

My Uncle invested in land and rental properties. By doing this, he and his wife gave themselves financial peace of mind for the long run and adequate funds to support pretty much anything they desired, while remaining frugal down to earth people. They strategically grew their investments and streams of income from one to 31 rental properties. In addition, he acquired landholdings exceeding 350 acres. Having money coming from multiple sources is a way to build your wealth.

HAPPY FATHER’S DAY UNCLE NATHANIEL!

Another person with diverse income streams – Elon Musk. Musk is an entrepreneur and Billionaire, with a net worth > $20 Billion. Musk became a multimillionaire in his late 20s when he sold his start-up company, Zip2, to a division of Compaq Computers. He founded PAYPAL in 1999, SpaceX in 2002 and Tesla Motors in 2003. He made headlines (AGAIN) in May 2012, when SpaceX launched a rocket that would send the first commercial vehicle to the International Space Station. He bolstered Tesla with the purchase of Solar City in 2016. Apparently he still has spare time, as he founded The Boring Company, which just won the contract to build a high-speed underground transport link between Chicago and O’Hare International Airport. Musk intends to build a tunnel and transport people on a ZERO emissions high-speed transit systems with speeds up to 150 mph. He will fund this $1 billon project himself. “I always invest my own money in the companies that I create. I don’t believe in the whole thing of just using other people’s money. I don’t think that’s right. I’m not going to ask other people to invest in something if I’m not prepared to do so myself.” Elon Musk

Just how important is having multiple streams of income? Let’s examine the richest man in the world, CEO Amazon, Jeff Bezos. Bezos is today worth about $130 Billion. Amazon under Bezos’ leadership has mastered multiple sources of income better than any company EVER!! Amazon started by selling one product-books. Today, it is easier to tell you what physical products you cannot buy from Amazon, versus the list of millions of products and services you can buy! A house and a car are the only two that come to mind, that Amazon does not sell TODAY. But give them time, Amazon has examined both products as potentials. And the real estate agent is quickly becoming obsolete.

Today Amazon is a titan of e-commerce, logistics, payments, hardware, data storage, and media. Amazon is the go-to site for online shoppers and merchants alike. Prime, Amazon’s signature $115-a-year membership program, has an estimated 85 million subscribers in the US, equivalent to about two-thirds of American households. Amazon sells hundreds of millions of individual products and services, in addition to cloud computing services, (their most profitable business), home improvement services, etc. If Amazon had not added the above multiple streams of revenue, I can say with certainty, Jeff Bezos would not be the richest human on the planet! And since he owns a Space rocket company, I think he plans to expand his title from richest on the planet to the GALAXY!

Successful investors and businesses strategize to create multiple sources of income to increase their wealth, provide a safety net and achieve financial independence. They recognize having a single income is a RISKY idea, (the unsinkable Titanic sunk on it’s maiden voyage) and constantly look for ways to diversify their streams of income.

Entrepreneur business owners, understand that multiple investments are key to building their wealth and creating financial stability. They learn early that some businesses fail and they are prepared. If one venture flops, their other investments will keep them afloat or thrive, while they reset their course.
For those working in corporations, they use their talent and intelligence to advance both their career and compensation packages with bonuses, stock or equity in their firm, etc. Many top executives exceed their base salary with their bonus or equity grants. Again utilizing multiple streams of income to create sustainable wealth.

Majority of wealthy Americans DO NOT focus on spending money; they focus on investing and letting their money do the majority of the work. Tom Corley, author of “Rich Habits”, studied the habits of millionaires and found:
• 65% of self-made millionaires had three streams of income.
• 45% of self-made millionaires had four streams of income.
• 29% of self-made millionaires had five or more streams of income.

Having multiple streams of income is the same as diversifying your investment portfolio. When one income stream suffers, the others make up for it. And if all your streams are doing well, you are making a ton of money!

Here are some of the ways you can start creating multiple streams of income in your own life. If you still have a regular job, start a side business. About half of the world’s millionaires own their own businesses. If you already have a business, great! You’re on your way to becoming a millionaire. If you do not, consider ways to start one. At first, it may look like your extra money is flowing out of your accounts, with little return, but, eventually, you may be able to take the leap into full-time self-employment.

Find multiple streams of income to incorporate within your existing business. Develop new products or services within your existing business. It is easier to find multiple sources of income within the same business versus building a new business.

For those who desire more income streams, there are countless ways to make more money. The key point is GET STARTED. Do not over think and fail to make a decision to get started. That brilliant investment idea you never made is now worth how much? Let’s stop telling those stories. Stick to your passion and interest. Learn how to say no to income opportunities that do not appeal to you or exceed your risk threshold.

HOMEWORK!
Write down your current streams of income and brainstorm opportunities for adding additional cash flows. Estimate the potential income and the effort required, including cost. Think of today’s technology in your plans. There are people using Instagram, Facebook, blogs, podcasts, etc. creating stable streams of income.

Creating Stable Streams of Income typically takes time, sometimes years. Be patient and strategic. And if you have new methods and wish to share with your fellow readers, please leave us a comment. We will all appreciate learning.