The biggest risk one can make is having a singly source of income. If something happens to that “job” you have no income at all. Diversifying is not just for investing. It’s also for income generation.
Wealth is most easily, safely and efficiently built by developing many sources of income rather than relying on one.
Consider generating more income by
- Getting a second job
- Turning a hobby into a business
- Starting your own business
- Or being creative
Build residual passive income streams:
- Passive income is far preferable to income that is actively generated.
- Consistently move to convert active income streams to passive and residual income generating sources.
- Your goal is to ensure that as many of your income sources continue flowing whether you work or not.
- Make your money earn money through investing wisely. The power of compounding is dramatic.
Develop the three main sources of residual income:
- Real Estate
- Investing
- Marketing.
Develop many income streams from these sources. Good businesses work to ensure they have multiple revenue generating products. You need to do the exact same thing with your personal finance. Remember. You are a business. So do what businesses do!
Wealth is when small efforts produce big results. Poverty is when big efforts produce small results.
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