It’s said that the average millionaire has about 7 sources/streams of income.
You already know my views on being average so I won’t go there. Still I don’t think it’s a bad thing to strive for that goal. Over the last few years I’ve realized the importance of having multiple streams of income. Unfortunately, I had to learn from 1st hand experience.
About a year ago I moved to Las Vegas for a job opportunity. Things went well for about 6 months until I got fired, suddenly. My first thought was how the hell do I pay rent next month? Fortunately I got hooked up with a job within a week so I barely made rent in time. That job wasn’t for me so I ended up quitting after 3 months. With no income prospects insight I moved back home to California with my parents.
If I had a second source of income I would have survived…
Well technically at the time of me quitting I HAD 3 sources of income they just didn’t help. Why? Well that’s what I want to talk about today. Those 2 additional “streams” of income were actually just trickles. Trickles as in they weren’t producing much if any income at all. Recently this has had me thinking…. Just how many of us are out in the world claiming to have multiple streams of income when it’s really multiple trickles???
And just what is a “stream” of income?
Personally I think an income can be considered a stream if it has these 3 basic traits. First is it producing a minimum of $500 per month? Preferably $1000 per month is probably a better metric but I’m an overachiever. At the $500 or above level, the income actually becomes useful. Let’s face it an extra $100 a month is great but that doesn’t even cover a month worth of gas.
$500, on the other hand, is enough to cover a car note and insurance depending on what you drive. It’s a nice chunky payment to your credit card or student loan debts. It’s a great addition to your savings account. It’s even a full month of daycare for some people. Basically it’s a financial stress reliever.
An income stream needs to be reliable…
I like the word “reliable” though I think it means something different for me when it comes to an income stream. I have a background in sales. So if you ask me or any “salesmen” anything commission or sales based is a reliable source of income. Sales relies on your efforts at the end of the day. You almost always know exactly what needs to be done to produce a certain income. Anyway when you think about it reliable just means it will be available for you to come back to later.
Thus sales is reliable because there is never a shortage of customers to sale to. $500 per month is no good to you if it’s not a reliable source for income. If your sources are random and fly by night, you’ll spend every month flailing about trying to figure out where your next $500 is coming from. I think a lot of people think jobs are reliable because you always know where the money is coming from. And that’s kind of true. Although, at a job you do have to worry about arbitrary rules, declining business needs, job pool competition, inflexibility, and inability to snag a job at a moment’s notice.
What jobs really are are consistent, which is the next basic income need.
Let’s say you have a well where you can pump water from. The water is your minimum $500 income, the location of the well is its reliability. Your consistency would be how well you operate the pump. If you’ve used a pump operated well before then you know that you have to prime the pump to build pressure before you actually produce water from the spout.
What happens with most people is they work hard enough to get there first drink of water then they take their hands off of the pump. With their hands off the pump the pressure drops and the water stops flowing. Thus they have to start over again. This leads to a roller coaster of income and emotion. Not knowing that if they would keep at it the pumping would get easier and provide them with a constant flow of water.
Taking these 3 basic needs into account let’s look at my current streams of income. You can look at your own too.
Source > Min $500/month? > Reliable? > Consistent?
- Amazon (job) > Yes > Yes > Yes
- Blog (affiliate/ebooks/courses) > No > No > No
- Forex/Binary Options > No > No > No
- Consulting (1 on 1/group) > No > No > No
- MLM/Direct Sales > No > No > No
- FBA > Yes > Yes > Yes
- Ex Apparel (T-shirts) > No > No > No
Doesn’t look like many of those income “streams” are meeting the bar so I’ll eliminate them.
Only 2 sources of income are meeting my requirements for being an actual stream. What about you?
This actually shows how I prioritize my efforts nowadays. The streams that are producing get most of my time and effort. What I see a lot of people do is they’ll take that first set of streams and try to focus on all of them at once. I used to do the same thing because I wanted to be successful like anyone else. What I found out was there was a better to approach to the 7 sources of income goal.
First focus on the 1 or 2 that are actually producing anything. Next grow that source to sustainability aka make it reliable and consistent. Last once you get to that point shift more of your focus on to the next trickle and repeat the process. That’s how FBA turned into the Beast that it has been for me. I was already earning a paycheck from my job so I put a bit of that money into FBA.
The first month wasn’t that great but FBA produced something so the next month I put more time and all my profit back into and it grew by 3x the next month. I knew I was on to something so I spent even more time and again all my profits on it. Now it produces about half of what I make at work and is still growing. The best part is I spend less than 10hrs a week creating that income.
That means I can shift my focus. (Which I already have.)
I use my income reports to evaluate and refocus my efforts every month. Currently my radar is fixed on growing my blog and my Ex Apparel income. Ex Apparel takes the forefront because it’s got the best potential to produce something quickly. The hang up is I’m struggling with finding an affordable designer in my city. Once I get that little headache out of the way I’m sure sales will start to come in and I can then grow it to the same standards as FBA.
The blog income is dependent on how well I grow each individual income. Why would anyone want to purchase through my affiliate links or my courses if I’m not proving I know what I’m talking about? Once the blog income hits my standards that’s when stuff really gets fun as I’ll have the money to go all in on Forex and Binary. MLM and consulting fits in somewhere in between all that.
Now I’m sure that all sounds like a lot because it is. It’s a lot of work to create 7 streams of income but it’s exciting to think about. After all the journey to 7 sources of income will always be more fun than actually having them! Plus having you here to join in the journey and experience of creating your own income makes it all worth the struggle. Hope you’re enjoying the journey as much as I am. See ya soon!
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