#RichHabit Challenge: Create Multiple Streams of Income

multiple streams of income

Tom Corley, author of Rich Habits, discovered 76% of the wealthy in his study were self-made millionaires. They came from non-wealthy households (45% from middle-class and 31% from poor households).

The data also showed 65% had at least three streams of income.

You can read more of the itemized data in his article at http://richhabits.net/how-many-income-balls-do-you-have-in-the-air/ or listen to my reading of the post (Click here ->[38:36])

One can become wealthy with a high-paying job if disciplined enough to save a large portion of their income. However, the data shows having multiple income streams does more than just bring home more money.

Helps cash-flow emergencies

Imagine having an accident or your basement flooded. These are big expenses most people would pull money from emergency reserves to cover or rely on credit cards.

Now imagine you have a full-time job and a side-hustle (secondary stream of income). While the side-hustle might not produce the same amount of income as a day job, it does allow for more margin in your budget.

Suddenly, there is more cash available to cover an emergency expense without dipping into savings or borrowing on a credit card.

A secondary or tertiary stream of income can also be used to save for future purchase instead of taking out loans (think new vehicle or replacing the roof on a house).

Reduces household expenses by deducting on income taxes

Christine Oodle from Coach Connections says she gets to write off many of her expenses that used to come out of their personal budget.

  • Cell phone
  • Vehicle (one of them)
  • Portion of her home

Listen to Andy Magnus talk about what types of expenses are deductible in this interview segment [27:58]

Increases confidence to take greater risk (and reap greater rewards)

The financial decisions we make are largely decided by our ability to recover if it all goes downhill.

We take more risk when we feel we have less to lose. The same goes for those who have margin in their budget.

Think of it this way: If all your bills were paid and there were ten $100 bills in your pocket, you would be more likely to buy into riskier investments than if you were living paycheck-to-paycheck with no savings in the bank.

multiple streamsMy Streams of Income

Not only do I make money as a Financial Wellness Coach, I also:

You might be handy with a hammer and saw. You might be crafty and create interesting pieces of art to sell on Etsy.com. Or consider your neighbors might pay $10-$20 to have their driveways shoveled before they need to leave for work or their dogs walked when they are away.

Dan Miller offers a great list of 48 low-cost small business ideas. Check it out and watch the juices begin to flow.

Your #RichHabits Challenge:

Think of a small business idea or side hustle to start today.

What are you doing to create multiple streams of income?



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