I was reading an article and the author quoted some research from another author of self-published books. “Author Thomas C. Corley’s five-year study of self-made millionaires discovered that a majority of them have multiple streams of income. In fact, 65 percent of the millionaires he studied had three streams of income, while 35 percent had four streams.”
This sounds accurate at least from the wealthy I know and work with. I have doctors that teach as well as their practice. I have Consultants who are adjunct faculty, speak and are published.
So here is the average person who is a W-2 employee, what are their options for additional income streams? I read in a Huffington Post article about “passive income streams” suggesting that one consider royalties: such as from a book they have written, or a song published or the development of a product. So, ludicrous options for the everyman or woman.
In the past I have encouraged clients to find their passion and start a side business. Or if a possibility exists of taking on clients on the side doing what they do for a living, assuming that there is no conflict of interests involved.
I would advise against anything looking like a Ponzi scheme, or a franchise. Real estate is an option if you have the funds for a down payment and want to be a landlord.
One option that one of my sons does for cash is participates in focus groups or surveys. This pays better than minimum wage and allows him freedom to work when he chooses.
I still foresee a time when most people will not be employees or companies, but rather are independent contractors working on projects for a period of time. Working for multiple clients as their talents are in demand.
If that does become the case, multiple income streams will become vastly more important to all. So start planning on a plan for diversification of your income streams, this may be crucial to protect yourself and your family against the unavoidable ups and downs of economic and industry cycles.
Because of the financial risks that come from relying on one source of income, such as a job or a business, consider creating at least one or more additional streams to generate cash flow.