The Importance of Building Multiple Streams of Income (Part II)

November 7, 2006

I shall now continue from where I left off from the previous post. Many may not realize, but money is one of the most important subjects to study in your entire life. Some of life’s greatest enjoyments and most of life’s greatest disappointments stem from the decisions you make about money. Whether you experience great peace of mind or constant anxiety is dependent on the extent you get your finances under control. Similarly, your relationships can be affected by money decisions too. So many divorces have happened because of disagreements over money.

Hence, understanding how the game of money is played can be crucial to maintaining your success, relationships and happiness. Do not underestimate this skill, as it’s one thing which is severely lacking in most people today. They do not invest their money wisely and rely on only one stream of income.

As I mentioned in the previous post, it’s dangerous to do so. As much as people are skeptical about owning a business, there’s one thing that almost all of the wealthiest men in the world have in common. No, they do not work ten times harder. But simply ,they own a business. And most of them have multiple streams of income.

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The Importance of Building Multiple Streams of Income (Part I)

November 5, 2006

If you have not read the book “Multiple Streams of Income” by Robert Allen, I suggest you go read it. It’s really a good book about the concept of wealth. Let me share with you something which is thought provoking and mentioned in the introduction of his book.

You see, most people will earn at least $25,000 a year. If you were to do the math, more than $1 million will flow through your fingers. Hence, the good news is, we’re all already on track to becoming a millionaires. But the question is, ‘why do so few people ever become a millionaire?’ Simply because most people end up spending almost that they’ve earned. And hence, most retire with little savings.

The reason can be attributed to the fact that nobody teaches us about money. In school, we’re forced to take several compulsory subjects. No doubt it helps in providing a more wholesome education. But we receive no formal education in the most critical of all life skills: how to become financially successful!

You see, it’s not about how much money you earn, but how well you’re able to manage your money that will determine your wealth. Yet, we weren’t taught how to manage money in school.

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