Makeing Money - Wealth Building In Today's Economy - How Important Are Multiple Income Streams?

If you've been interested in and pursuing wealth building for any length of time, you've certainly come across the concept of "multiple streams of income". It's a wealth building strategy that has been around for years, and is based on diversifying income sources. Today's question is this: In the present economy, is the strategy of multiple streams of income still relevant?

The short answer is a resounding "YES!", and I'll explain why.

At is core, the "multiple streams of income" strategy serves two very important purposes. First, diversifying your income sources allows you to take advantage of various financial opportunities at once. The reason that this is desirable is that, when accomplished effectively, a multiple income strategy provides the ability for your income to grow exponentially. Simplified, this means that you have the ability to grow significant wealth in shorter periods of time than if you depended upon only one income source.

The second advantage of engaging the multiple income streams strategy is also important. Multiple income streams spread your risk. Ever heard the saying "Don't put all your eggs in one basket?". This is the same principle.

A great example is what's currently happening in much of the United States with the housing market. Owners of residential real estate are in a bind. The buying market is depressed. Translation...People are not buying houses, and those who are, are not willing to pay the prices for homes that were being paid just a couple years ago. Sellers who bought real estate at inflated prices are now having to sell their investments for much lower returns, or not sell at all. They're losing money.

If you were a residential real estate investor, whose sole income source was your real state holdings, you would be in a bit of trouble right now. On the other hand, if you were smart enough to have diversified your holdings and have money invested in enterprises other than real estate, it is possible that your other investments could offset your real estate losses. This would leave you in a much less vulnerable financial position, and potentially have you in a position where you're still profiting comfortably in spite of the losses in real estate.

Another way of looking at the concept and the advantages of multiple income streams, is to think in terms of the relationship between your income and your occupation. If you currently work for yourself or for someone else, the deal is that you perform work and in exchange for that work, you get paid. But if you depend upon your income from working to be your sole or main income source for you and your family, what happens if you're unable to work? What position does that put your family in? Kind of scary isn't it, yet there are thousands of people who are managing their financial lives in just this way. They're begging for disaster and building their financial future on “a wing and a prayer”. Is this you?

How different might the outlook in the above scenario be if, in addition to the income from your occupation, you added another source of income, or two or three or four? How much more protected might you be?

In today's economy, multiple streams of income is more relevant than ever. How many income streams do you have?

Multiple Income Streams - Residual Income Opportunity