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3/8/07

Multiple Streams of Income

Just like diversifying a stock portfolio gives you the best opportunity to make money by spreading your risk of loss, multiple streams of income give you the best opportunity to achieve wealth and success. The phrase “multiple streams of income” has been around for some time. You have probably heard it used in various wealth building systems and/or popular personal success literature. The logic behind the idea of multiple streams of income is simple. The more areas from which you acquire income, the greater the chance of success and the less the chance of loss. The goal of multiple streams of income is to build a large passive income and residual income.

Passive Income vs. Residual Income

Passive income is defined as: Income derived from business investments in which the individual is not actively involved.

Residual income is defined as: Recurring income received after the initial sale is made.

Income, as defined by the I.R.S. is: An undeniable accession to wealth that is clearly realized and over which the taxpayer has complete dominion and control.

As you can tell by the definitions, some differences exist between passive income and residual income; however, both are equally important and effective in helping you acquire wealth. Now we get to the million dollar question, how does one achieve a passive income and a residual income? This is the whole concept behind the goal of multiple streams of income.

Multiple Streams

I could easily tell you the many areas of business and entrepreneurialism that could help you achieve a passive and residual income, but it probably would not help much. If I said, “Check out the internet, real estate market, stock market, employment opportunities, and investments/savings products,” you would not gain any insight into these areas of potential success. However, over the upcoming months, I am going to break down each area stated above. I am going to tell you about as many different possibilities, products, and opportunities that I know of in each area. By doing this, I hope to inspire you to pursue some of these opportunities. I also hope to build your motivation and get your entrepreneurial mind working.

The Main Categories

I will discuss: (1) the internet; (2) real estate possibilities; (3) stock market strategies; (4) employment opportunities; and (5) investment and savings products.

Please note that each “main category” will be discussed in depth in numerous posts. I will discuss the many different avenues for each category and how each avenue can help you create passive and residual income.

More to come soon...

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