Does Your Elevator Have More Than One Cable?
Creating Multiple Income Streams
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Imagine being in an elevator with one cable. If that cable snaps, hopefully the emergency brakes work otherwise you’re hooped. Now imagine being in an elevator with multiple cables. If one snaps, it’s not fun, but at least you have several more cables to keep you safe. It’s the same with income.
With COVID, we’ve seen multiple people crash when their business closed or their employer laid them off. Suddenly individuals who were making $100,000+/year had bills that they couldn’t afford to pay
Robert Kiyosaki, author of “Rich Dad, Poor Dad”, wrote another book called “Cashflow Quadrant” which outlines the 4 categories for earning money. Each category has its pros and cons, and as an analytical person, I like my lists.
By combining these income streams, we can maximize the pros and minimize the cons.
As an Employee, you have a steady wage but the amount you earn is limited. Supplementing this with a part-time business and an investment portfolio are excellent ways to increase the number of your cables.
Start a Part-time Business
When starting a part-time business, choose something that’s enjoyable to you and pays you well for your time. It may take a while for your business to get off the ground but ideally, in time, your part-time business will out-earn your full-time income
An example of this is where I work, World Financial Group. (I know, shameless plug, but it really does exemplify this principle well). Most of our agents came from other industries and all of them started as trainees. In a few years, many of their businesses grew to the point that their part-time business income exceeded their full-time job. (And this is the rule, not the exception).
Work with a Financial Professional
When working with a financial professional, find one who represents you, and your needs above their own commissions. There are many different kinds of advisors but I recommend working with one who’s willing to teach you how investing works. If you do want to go it alone, there are numerous programs that will show you how to invest in the stock market, real estate, cryptocurrency and more. But choose a mentor or program that has a proven track record in bull and bear markets.
If you do choose to invest on your own, I still strongly recommend working with a financial professional. Your personal investments may grow faster but a diversified portfolio with a money manager creates stability and can still earn a decent rate of return.
Now look at the stability of your elevator. What would happen if one cable broke?
The opinions expressed in this blog are my own and do not reflect WFG or any other organization. I also claim any errors made as my own. To offer corrections or feedback, please contact me. Sincerely, Tina Michelle Moller