If you read many stories about entrepreneurship, you’ve probably noticed that most entrepreneurs have multiple streams of income.
Mostly by design, business owners go to great lengths to make sure they have money coming in from all directions – or, as some might say, “making sure their eggs aren’t all in one basket.”
Income rolling in from all over the place sounds great, right? Unfortunately, it’s hard enough for some people to figure out how to create a single income stream, let alone more than one.
Think of income streams as small rivers of money that feed into one big lake called a retirement fund. The more of these rivers you have, the bigger the lake gets. Then, in retirement, you can take money out of your fund. Money flows in while you’re working and money flows back out in retirement.
Back in the day (1960 to be precise), the average lifespan of an American male was 66.6 years. In 2010, the average was 75.7 years. In other words, people are living longer after they retire. But that creates a problem: outliving your retirement income, or running out of money to live on. Not good.
Working a traditional 9 to 5 job for many years leads most to the same result burnout, living pay check to paycheck, and as time goes on, the worry of financially being able to retire becomes significantly overwhelming. The average American household would work long days, including weekends, and I have little show for it. I’m sure you know what that feels like? I knew that I wanted more freedom and the idea of passive income became very appealing.
I knew of many people quitting and replacing their full-time job with passive income, but I had no idea where to start. Couple this, with raising children, life curveballs, and you seem back at square one.
However, if you want to learn legit ways to make passive income then keep reading. There is no reason big enough that should or could stop you from doing something so simple that could not only change the trajectory of your life; but allow you to change others lives in the process.
Are you listening? Stay with me!!
What is Passive Income?
Passive income is where you get paid over and over again for work that you did once!!!
So today, if you don’t go to work, you don’t get paid. Passive income, is money coming into your bank account based off of efforts you made specifically one time. I now have multiple income streams that are passive, residual income streams!
You have to know your niche clearly. You have to know who to sell your product/service to, what solutions you can provide to your customers, what outcomes you can help your customers achieve and why they should work with you. You should have a signature strategy that you will apply on all your income streams to help your customers achieve results. Without a strategy, marketing your product will be hard and your time and energy will just go to waste due to frustration.
Building multiple income streams has several advantages over relying upon one income source. This seems like a no-brainer to me.
What’s holding other people back?
I believe it’s a lack of confidence and knowledge and the fear of making a mistake.
But I argue that the bigger mistake you’ll make is to remain idle and not make the financial and time investments required to build multiple income streams.
Secondary income is empowering. It gives you more leverage in your career because you don't need your everyday job. You work because you want to, not because you have to.