Multiple Streams of Income

Here's a summary of chapter two from 50 Prosperity Classics: Attract It, Create It, Manage It, Share It (50 Classics). This chapter is written by Robert G. Allen, author of Multiple Streams of Income.

Key Quote

"Prosperous people have always known...If one stream dries up, they have many more to tap into for support. So-called ordinary people are much more vulnerable. If they lose one of their streams, it wipes them out...In the future, you will need a portfolio of income streams -- not one or two, but many streams from completely different and diversified sources -- so that if one stream empties, you'll barely notice. You'll be stable. You will have time to adjust. You will be safe."

Summary of the Chapter

The prosperous do not depend on only one source of income, but grow orchards of "money trees."

My Thoughts on This Subject

1. I read Allen's book a long time ago. I can't recall the specifics, but I remember agreeing with the principles but discounting some of his ways to implement those principles.

2. I agree that the more streams of income a person has, the better.

3. I currently have the following streams of income: my job, investments, this blog (though I give all the proceeds away), and freelance writing. I'm working on developing a few more -- and ones that are less dependent on my time to succeed.

4. Even with the few streams I have, my job is by far the dominant income producer. It would be nice to have a strong #2.

5. Many people don't have multiple streams of income. Some ideas to get more are listed in 11 Great Ways to Earn More Money.

6. This chapter is about playing great financial offense. Just a note that good financial defense is just as important and is often easier to influence/control. Spending significantly less than you earn is also a great way to protect yourself from a stream of income drying up.

Comments

[Curt]

I love Robert Allen's book. It has inspired me to continue pursuing many income streams.

[Dr. Artfredo C. Abella Ph.D - WHITTIER, LOS ANGELES, CALIFORNIA]

Having multiple streams of income is somehow congruent to the concept of applying diversification in your investments. By applying diversification of investments it will afford one to have multiple streams of income. The concept of having multiple streams of income is indeed very important to avoid or eliminate business risk. If you have several lines of business which will afford you several streams of income you minimize the risk of insolvency. The more multiple streams of income that you possess the greater is your possibility to become a millionaire. Having multiple streams of income is an antidote towards financial debacle. Even Easop's fable would advocate on this concept when it says: " Variety is the spice of life."