Reason for this Goal: Developing multiple income sources is a great way to diversify and protect your financial health. There has never been a better time in history, due to today’s technological marvels and internet advancements, to do so. With multiple sources of income, should one source end, you will have other sources already established. You can generate passive sources of income that aren’t directly tied to each hour of work you get paid for, as in a traditional job.
Examples of multiple income sources include:
1. Employment income (salary) from your primary job - For most of us, employment income is our primary source of income. I have worked for a top employer in Canada for more than 25 years and earned excellent employment income.
2. Income from a secondary job or side business - Earning income from a secondary side business is highly desirable for many households, whether out of necessity or as a hobby or passion.
3. Rental income from real estate - Rental income from real estate is one of the best income sources I know. In my wife and my personal experience, our Gables On The Park investment properties has been a significant source of income. Each year the amount of positive cash flow increases. If you are even remotely interested in real estate investing, I encourage you to check it out. See Goal # 48 of owning Real Estate to develop significant net worth.
4. Commissions from selling - While many people shy away from selling, it is one of the best and most lucrative ways to make money. Your salary isn't capped like it is with regular salaried income. If I was to start my career over again, I would seriously consider a selling based career.
5. Buying and reselling for a profit or capital gain - There are numerous examples of items that can be bought and sold again for a profit. Real estate, art work, antiques, collectible, musical instruments, products from a low cost country etc.
6. Income from a multi-level marketing business - I was involved in the Amway multi-level marketing business more than 20 years ago. It taught me a lot about business, communications, people, processes and marketing.
7. Interest income from investments - Investing in dividend producing stocks is a popular way to produce investment income, usually reinvested to keep the money compounding. In a well planned retirement plan, interest income from a large nest egg of investments is a primary source of retirement income.
8. Royalty income from letting others use your products, ideas, or processes (e.g., books, songs, or products) - Royalty income can last a lifetime. I am new to this and have recently written two books. Check out my books "100 Life Goals" a Step by Step guide for Designing your life and "Buy Your Neighbours House" for one of the best real estate investing strategies for developing wealth on your own street!
There are very few individuals who ever become millionaires through employment income alone. The vast majority have multiple sources. Decide on what makes the most sense for you.
Suggested Goal(s): Develop a second source of non-salaried income.
Your Outrageous Goal: Develop at least 5 multiple income sources.
We recently just made an investment with a local Canadian real estate developer to purchase a hotel suite in a major restoration project. The investment allows us to share in the profits of a luxury hotel and all the income that is generated through the running of this hotel. While some may consider this a risky investment, there is the promise of quarterly and annual payments, which could represent a good, additional source of income for our family. It’s also a hard asset we can stay in while enjoying an investor experience and owning a significant piece of real estate.
To supplement the writing of my 100 Life Goals Book, I will seek to develop a side business through www.100GoalsClub.com. There are numerous possibilities in developing income from such an internet-based business, including:
I have some great people and sites that I follow, which may serve as my role models:
www.financialsamurai.com A financial site developed by Sam Dogen, in 2009, for the purpose of financial education and achievement of financial independence.
www.rockstarbrokerage.com Tom and Nick Karadza, of Oakville, Ontario, have developed one of the best real estate investing clubs in Canada, and they also teach courses in entrepreneurial business.
Have fun, and brainstorm on ways you can create multiple income sources for yourself.
Return to career goals.