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The 7 secret keys to wealth - Key #2: The Multiple Streams of Income.

This article is one out of seven that I wrote about wealth. The whole series contain a lot of free valuable information about key factors that can help you become wealthy. The rich do things in a different way. That difference is the one I want to explain here. Let’s scrutinize together these strategies that can make you more money and help you boost your income.

The whole series contain the following articles . . .

1. Add Value.

2. The Multiple Streams of Income.

3. Passive Income.

4. Residual Profits.

5. Leverage.

6. Specialization.

7. Compound Interest.

Let’s start by saying that whether you own a business, you are a trader or an investor it is always good to diversify. As the saying goes: “Don’t put all your eggs in one basket.”

That’s the main idea behind this concept of multiple streams of income. Most people have only one job. Other people depend on their job but also have some investments like their home. Anyway, to have multiple streams of income is as important as desirable. That’s why I wrote this article about it. Furthermore, this is one of the keys to creating more wealth in your life.

The reason of why it is important is obvious. If you have only one source of profits, if that stream dries up, you will feel anxious. By the way the mere fact of having only one source of revenues can make you anxious sometimes if you think about the possibility of losing it.

On the other hand, when you have multiple streams of income, you are assured that if a source of revenues stops producing profits for you, then you still have money getting into your bank account from other sources. This contributes to your peace of mind and overall well being.

Diversification is very important. For example you could own only one business but sell different products and at the same time own a couple of rental properties and have liquid investments. This way your wealth is diversified so if something fails you still have resources to back up your loss.

Investing in real estate have often being profitable. Sometimes though the industry has experienced quick shifts which had left some investors in bankruptcy. There is nothing 100% secure and guaranteed in life. You never know what could happen tomorrow.

Some people prefer to receive substantial profits from different sources than to have only one source of income. The idea is not to jump from one idea to the other and don’t 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 new ventures without neglecting that stream of income.

The best way you can do this is by setting up passive streams of income, which I explain in one of my other articles on this series. If one of your income streams is your job or your business, which produces good profits for you but you have to spend 8 hours per days on it Monday through Friday, you will have to work more hours to make more money and that won’t be fun.

Now, if you can set up a stream of income, place it on autopilot, let it produce profits for you while you are setting up another stream of income and you keep that rhythm for a while, you may eventually become financially free.

You see, this is the idea. This system allows you to have free time. So, if you work more you increase your income exponentially over time. If you choose to not work that much, then you have more free time than with a formal job because the system is placed on autopilot and makes you money even if you are not working on it all the time.

If you just have a job and you get paid an hourly income, then if you want to earn more, you will have to work more hours. No matter how hard you work or how many hours you work, you won’t ever become rich this way. You may get promoted and get paid more money every hour, but still there are limits.

When you have multiple streams of income you can diversify your efforts. You don’t know which of those streams will produce the biggest amount of money for you. If you only do one thing always you can’t know if something else that you could be doing would result more profitable.

As the saying goes “variety is the spice of life.” By diversifying your efforts among different things, products and services, you may discover that some fields are more profitable than others, or that some products sell better than others.

For example, if you are an online marketer and you sell your own e-books, you may also want to try and sell other people products. I mean you could join some affiliate programs and give them a try. You may find out that this makes you money too and the amount of efforts required to promotes those products is relatively low for you.

You may already have knowledge about Internet marketing that you can apply to affiliate marketing. You combine your previous experience selling your own products to this new venture so it becomes easier for you than if you wouldn’t know anything about selling products on the Internet.

Then you may move on and try to become a dropshipper. You try to profit from online auctions as well as self publishing and affiliate marketing. Dropshipping is another method to sell other people products but this time you do it through online auctions like e-Bay.

You may also want to sell advertising space on your websites and get into a new industry to further diversify your business, your efforts and your revenues. I am talking about a specific industry here or topic, which is Internet marketing or how to make money on the Internet.

You can also diversify on your offline businesses and investments. Maybe you have a successful Internet business, but you don’t have any other investment or business. You could get into other profitable ventures and expand your horizons. I do believe that real estate is one of the safest investments. It is profitable too. As the saying goes “Buy land because they are not making anymore of it.”

Anyway, two important things that you should have into consideration if you want to create multiple streams of income is leverage and passive income. I reveal these techniques on my other articles.

I hope this article has helped you understand the importance of multiple streams of income. 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. They grow big little by little until their nest egg is huge. You can read more about this topic on my other articles.

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