The key to wealth and financial freedom : create multiple passive income streams

passive income stream

In order to create wealth, you need to focus on generating for yourself multiple income streams.

If you are interested, I’ll show you exactly how you can create your own passive income stream later on…

If you are familiar with Robert Kiyosaki’s book – Rich Dad Poor Dad, this is the strong message that runs throughout his whole book series – which is about the importance of creating assets, or multiple sources of income.

For a long time I have thankfully recognised this and have always looked to have multiple sources of income at any one time – no matter how small they might be.

Now I am far from my long term goals in terms of wealth, but no matter what stage you are or what age, the focus should be on diversification and not solely relying on one source, no matter how lucrative it might seem to be at the time.

While I was at University, I had multiple part time jobs, I also DJed at clubs and private parties, I also hosted and promoted events, including big boat parties, festivals, club night with friends that generated great income and was highly enjoyable.

I had also started a share portfolio where I was receiving (small) amounts of residual income in the form of dividends. Some of these income streams carried over to when I started full time employment and still occur to this day. Which meant that no matter what happened, I would always have some form of backup to pay the bills and live.

No matter the amount, it all adds up in the end.

I can 100% attribute this to why I was able to retire from my full time job. Not only had I saved money as a buffer, but I knew that I would always have money ticking over in my bank account no matter what might happen with my online businesses and with the sudden drop of a substantial income that I was receiving from my old 8-5 job.

For people out there who are worried about quitting your full time job, you can imagine how much easier that thought becomes when you know you are still at least capable of earning money – albeit not as much – but going from a Full time job to nothing is scary.

So many people I know only have one source of income – generally their full time job. And not only just the one source of income, but they genuinely have no idea how to make money if they need it. They either don’t have hobbys or passions that could sustain them – like DJing was for me. Still to this day I know that if you want more gigs, I am able to get them which is a great feeling in terms of  financial security.

Let’s go into some of the reasons why you should be creating multiple income streams in your life. Income Generating Assets

Decreases your risk of financial pressure

If you have a well paying job, that is obviously great and is the goal for the majority of people. But what happens if you get sacked. Or you get injured and can’t work. The house of cards all come crashing down.

There goes your only source of income. If you have a mortgage and a family to feed, then this situation can put massive financial stress.

By having multiple – even if it’s small amounts of income – streams you are dramatically decreasing your risk of financial hardships from anything that might occur in the future that is out of your control.

The Key to Wealth Generation

Another major reason is the multiple income steams is the key to wealth generation. Any highly successful person will always have money coming in from different sources. Whether its investments, businesses, sponsors ect ect.

Key to Success Online BusinessThe key here is to create PASSIVE INCOME STREAMS. That do not require your own time. Which means, not creating more jobs for yourself.

There are many forms of income streams, too many to get into on this blog post.

Aside from a Primary Full time Job – which most people strive to have in order to provide for their family or just to live…

To get your brain thinking some that stand out are…

  • Income from Shares in the form of dividends.
  • Blog website that provides incomes.
  • 2nd part time job
  • A casual hobby type of job like being paid to photograph a wedding for example. Something you enjoy doing more of a passion but allows you to get paid.

Of course these are very basic and we can break down multiple income streams into different types of investments as well.

Online Business

  • Have a Blog Website
  • Having a membership site
  • Creating Information products
  • Providing services

Bricks and Mortar types of Business

  • Having multiple products or services within your business
  • Selling both online and offline
  • Leveraging your existing business for a 2nd business that compliments.

By diversifying your income, you are protecting yourself from unplanned disasters. This is a smart move for all Savvy investors, and Business owners.

Passive Income

Now to get a little deeper, we only have 24 hours every day…. 16 hours if you take away sleep time.

So if you are relying on own time to create this income, such as a 2nd job for example, you are really limited due to the available hours in the day.

Although I highly recommend everyone look for alternate income streams regardless of the time factor and even if they are just secondary jobs for yourself, it’s always good to know you can create money if needed. Passive Income Online

However, at some point you will want to start looking to create or build passive income generating asset/business, which doesn’t require your own time.

If you can structure them in a way that they will operate without you, and will grow over time – thanks to the compound effect, the results become astounding.

A simple example would be to sub-contract out any extra work you have to someone else, and take a small percentage.

This is a very simple “business structure”, which can obviously lead onto bigger and better things, but let’s keep it simple for now.

So let’s say you enjoyed Photography as a hobby, and often get asked to do some freelance work at wedding’s every few weeks for some extra income and get paid $1500 per wedding.. You might then focus on getting more work and more referrals, but rather than doing the weddings yourself, you sub contract this work to someone you know who also does weddings for $1000.

Each time they are working you are making $500.

This is leveraging someone else’s time. You can think of them as your “employee”. They are happy because they got some extra work, and you are happy because you made some money for basically nothing.

The sky is the limit, but it takes a different mindset in order to be able to leverage other people’s time rather than you own. And this is the true secret.

An Easy Secondary Income Stream – that anyone can do

Now I get asked this question a lot, and I said at the start of this blog post that I would share with you how you can create an easy income stream.

In one of our businesses that provide Digital Marketing packages to business owners and websites – Moloko Services we offer a white-label reseller program.

What this means is that you promote our services as your own – charge whatever price you like – and then we do the work but on your behalf.

This structure is also a very basic, but successful tried and tested business system that occurs in every day life all the time.

Think of a supermarket. Supermarket Passive Income

They offer a Product for $10 …. but they buy it directly from the supplier for $5.

The supermarket doesn’t create the product at all, they just sell it, and make money every time sometimes buys.

In our fast paced, online world, our reseller program is providing amazing results for a huge range of people – right from your average mom and dad, to big business that don’t have the time or knowledge to offer the services we provide, but know people that need them.

With Social Media alone, the access to your existing contacts is enough to sell marketing services so the barrier to entry is small.

If you would rather just refer business to us, then we pay a recurring 15% commission on any business that is made from your referral.

These are perfect examples of creating a new income streams in your life, and the great thing about it is if you are serious and focus on it, it could well become your primary income stream and free you from the shackles of a 9-5 job.

We can provide you with plenty of mentoring, and training to help you get referrals or new business, so if you are interested we would love to hear from you.

Click here to learn more about our Reseller Program

So I really hope this article has provided you with some thought provoking ideas and get you more into a business like mindset.

We are very privileged to live in a world where these opportunities are presenting themselves, it’s its really up to you to take advantage of these amazing opportunities so you can  protect your financial future and that will allow you to get you one step further to whatever it is you dream about.

Take action – If not now, when?

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