In the post, I talk about creating multiple streams of income to both add income and create security in your cash flow. A comment I received made me decide to write this post because it’s exactly the question I get from a lot of people (both online and offline.)
Jackbravo asked how to implement this practically and said that showing a way would make the advice a success. What I like about the comment is that it didn’t come out as negative; rather, it was an honest question about how to manage it.
It’s About Finishing Rich, Not Racing To The Finish
The problem with most financial books that I read is that the author usually gives the false impression that success can happen without failure and in little or no time. As you can imagine, creating a large stream of automated income takes time. The real success comes when you’ve structured it properly and the business is on Auto-pilot.
If you’ve read my post, Use The Rule of 72 To Your Advantage, you’ll understand that multiple streams of cash flow does not need to be multiple hugely successful businesses. Multiple streams means that you are getting some income from numerous places.
In my Rule of 72 article, I show how simply doubling a daily deposit (starting at a penny) will create over $8,000,000 in 30 days. The same thing is true for automated cash flow. If you set your goals on having $10,000 in monthly cash flow (as I did in The 4-Hour Work Week Just Cost Me $100,000) you need to step back and create the wealth this way:
First, set an easy goal of creating one online business within 3 months. This may be an e-commerce site, product or service business or one of many other options. Aim to generate continuous and growing levels of cash flow each month. I like an easy number like $50 because with minimal effort, you should be able to create a niche marketing or some other site with that income quite easily. Next, grow the cash flow over the year and start working on the next one.
What about the Start-Up capital?
This is the basis for Jackbravo’s question and a great one at that.
The type of business you will be able to start is completely based on your current cash flow, current financial resources and ability to raise investor money. Make sure you know where you are and what resources are available to you. There’s no point in starting a exploration oil and gas business if you’ve got a few grand and nothing else. Work within your resource level.
If you have a high cash flow or a large cash reserve to draw from, you can basically choose any business within your competence area. If, on the other hand, you have little or no money at all you have limited mediums but almost limitless options.
Without the ability to generate investment dollars from your personal and business network, you’re pretty much limited as to your options. Since I am not an expert on network marketing, I will not even discuss that here. If this is something that you are considering, please look into the systems very carefully. Know what you’re getting into and what all the costs/expectations are.
I think that the easiest way to generate income in today’s economy is to start an e-commerce site. It doesn’t take a lot of money for hosting (Check out the $10 deal from Netfirms) so buy a domain and do some experimenting. Within a few months you should be able to bring in a hundred dollars or more per month. At best, you can do like the YouTube guys and sell out for a couple billion in 18 months.
Do What You Love
I know, I know, you’ve all heard this before, but let me tell you – it’s the truth. If you’re miserable, I don’t care if you’re making $200K per year. You need to move on.
For me, I love real estate (hence my choice in investment areas) and I love building websites. That’s where my interests are so I have no trouble learning as much as I can and spending time working with people in these industries. My advice for everyone is to take a look at what you love doing and move your life in that direction.
I hope this all helps. Let me know if you have any questions.
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