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.
Chances are, we picked up these skills from our parents and people around us. Most people will teach you to study hard and get a good job. They will say things like investing is risky and running a business is risky. Don’t you think this greatly stifles the creativity and entrepreneurial spirit in people? As such, even when we’ve profitable ideas in our head, we are often deterred by these thoughts that keep ringing in our heads.
Here’s a shocking fact: Today, managers over the age of 45 are fast getting retrenched and many have failed to find employment thereafter. How would you feel if you were to place your wealth and future in others’ hands only to be informed that you just got retrenched. What are your loved ones and children going to do? Can’t possibly let them starve right? If you happen to have some savings, then you might still survive for a few months.
But the shocking thing is, most ppl do not even have savings to cover their expenses for three months. Not to mention if they have other streams of income.
On the other hand, how would you feel if you’ve built for yourself multiple streams of income. If one stream were to stop, you do not have to worry as you have other streams to depend on. Your spouse does not have to bear the extra burden and your children do not have to suffer.
Hence, this all points to the importance of building multiple streams of income for ourselves. If you do not think of yourself, at least think of your loved ones.
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multiple streams of income…
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