If you’ve consumed a lot of wealth content recently, you’ve probably heard that many millionaires have seven streams of income. In fact, even the Bible says you should invest seven Various initiatives. Having multiple sources of income is important, but that doesn’t mean that advice on the matter is actually helpful.
Many people online tell you to start multiple businesses or side hustles at once. As a very successful property investor, I don’t recommend that approach. From my point of view, you are better off specializing and creating many complementary income streams related to your specialization. This allows you to create your niche, become known within it and avoid falling for the shiny object syndrome, where you jump from opportunity to opportunity.
There is a way to create seven streams of sustainable income. In this article, I’ll give you a way to create those income streams in three simple, effective steps. You have to decide if they are right for you. I am not a financial advisor; That said, I am a multi-millionaire, and this is all based on my personal experience. Hopefully, regardless of the path you choose for yourself, you will find my experiences helpful.
1. Develop a business strategy to generate an active income
You need a way to monetize your investment. Since wages are not increasing at the rate of inflation, I recommend doing this through business rather than employment. It should be a real business, not a side hustle. If you have a side hustle mentality, you will get side hustle results.
On the other hand, you don’t want to quit your job before you can afford to do so with the income generated by your business. So you need to find something that you can scale but in the beginning, you can do in your spare time.
You want to find something that you can eventually own without needing to work in the business. This means that there must be a way for employees or contractors to do the work you initially did yourself. This will allow you to sell the business in the future or keep it as a source of passive income and move on to a new business.
An example of such a business in the property industry would be deal sourcing. Deal sourcing is finding property deals and then selling the information to investors. You can charge hundreds of thousands of dollars per deal. Over time, you can hire staff to take over the day-to-day duties and turn it into a passive income source.
2. Create an investment strategy to generate passive income
All you have to do is invest your money. To buy you need to find assets that pay you to hold. This will become your source of passive income. It should be a reasonably conservative, time-tested investment that will protect your money long-term. This will be your primary investment strategy, so it’s not something you want to change every month.
Don’t buy luxury with your active income; It is essential and for investment. You can use the money from your passive income sources to reinvest and buy luxuries. Finally, you can live off your passive income entirely and invest all of your business profits back into your investment strategy and your business. This will put you in a great position to diversify into five new income streams to make seven.
An excellent example of a property investment strategy that can generate passive income is buying a large house and renting it out. You have to manage, so you don’t have to deal with tenants yourself. Once you have multiple homes, you may need to hire more managers to manage your leadership and ensure the entire operation is seamless.
3. Diversify based on your niche
At this point, you have two streams of income: business and investment. Now it’s time to make five more. These should be based on your industry for the most part. Don’t try and go too far outside your area of expertise. If you’re in the cryptocurrency niche, suddenly writing a cookbook probably isn’t the right move. You want to think about ways to expand into your niche.
Some examples of this could be: writing a book about what you do and how you do it, creating a course; starting a new business that complements your existing business; Angel investing in startups in your space; Or buying companies you can integrate into your existing structure. If you follow this formula, I believe you will and will be successful!