Multiple Sources Of Income – How The Rich Get Richer
If you have never heard of multiple sources of income – or MSIs as they are often referred to – then you are not alone. Most of the general working population have not heard of them. It is not something which is talked about at school, it’s not seen on TV much and most of your friends probably have no idea so they will not discuss it with you.
With the majority of the working population working for a living doing a day job where they exchange time for money, it is only a very small group of people who actually create multiple sources of income.
So exactly what are MSIs? Well, they are not multiple jobs, that I can tell you. There are only so many jobs which a person can do without collapsing. They will need sleep and rest sooner or later and there is only a set amount which can be earned when you exchange your precious time for money.
Multiple sources of income are income streams which bring you money from multiple sources without you needing to do much. These sources of income need work at the beginning, they need to be made and then launched but once they are set they – in most cases – only require a small amount of maintenance work.
The great thing about MSIs is that they earn you money while you do other things. Depending on what MSIs you have set up you could be earning money while you sleep, or while you take a walk down a beach, you could be on holiday with the family or simply sat at home watching a movie with the family.
MSIs are designed so that once launched they generate money with little or no additional work. Many of the super wealthy who have MSIs have automated them by paying others to manage them for them.
Traditional Multiple Sources Of Income
You could say that a person who owns and rents out many properties has MSIs. At first they will buy a property, get it ready to rent out then find tenants. Once the property is rented out they then collect rent each month in return for small maintenance jobs which may or may not need doing.tyle=”font-weight: 400;”>With one property in their portfolio they would borrow money often using their other property as collateral and buy a second property. This would be made ready and then rented out. They would now be earning two incomes each month. Overtime the successful landlord would buy many more properties and rent them out creating more than one monthly income AKA multiple sources of income.
When a property comes empty and if the property is kept to a good standard they will only need to give it a good clean and find new tenants. Many landlords use a 3rd party company to manage their property portfolio giving them less work to deal with. They sit back and allow the money to come in to them while they enjoy life. MSIs are best when the system is automated as much as possible.
The big problem with renting out property is that it is a costly business with very little return compared to other income streams which you can create today. We live in a new economy, today we can sell to people from the four corners of the world right from the comfort of our own home. We can create products which we can then sell online for a good profit. Often these products can cost pennies to make but can be sold for hundreds of dollars depending of course on what the product is.
Multiple Income Streams In The New Economy
There are people like Bob Proctor and Jack Canfield who create educational products which can help people live a better life and earn a lot of money.
In fact they change people’s lives and lifestyles completely. For this they can charge several hundred dollars up to a couple of thousand dollars. These products can cost a few dollars to make meaning that they can generate a lot of money when they are launched.
The products can be audio podcasts, videos, ebooks and articles with live online presentations called webinars. Once made, a product can be sold over and over again for many years while it is relevant. People are hired to manage the running of the products then Bob and Jack will move onto something new.
They can have several high ticket educational products for sale online at the same time. These all become sources of income for them.
Multiple Sources Of Income And The Creative Industries
There are many businesses and products that a person can get into which have multiple sources of income. One of my favourite examples is the British author JK Rowling. She was once a single mother on state benefits but thanks to her brilliantly successful Harry Potter books she is now a billionaire. Or was, it depends on how much of her money she has given away. She is a very generous woman donating a lot of money to charities and good causes.
She has multiple sources of income generating her money. There are the Harry Potter books to start with. Each book is an income stream, and with them being exciting children’s books they could sell well for the next 20 to 30 years. Think of Dr Zeus or Roald Dahl, their books are still selling and being enjoyed today and they were written many years ago.
She has money coming in from Hollywood thanks to her Harry Potter books being turned into films. I cannot say if she was given a licensing lump sum or whether she gets a percentage of the sales of the box office ticket earnings, sales of DVDs & streamings and any other merchandise but what I do know is that those things would not have been made without her being compensated.
Not only does she have the money coming in from the world of Harry Potter she also has money coming in from the adult centred crime books which she writes under the pen name Robert Galbraith. This woman has MSIs by the bucket load.
The important factor here for many MSIs in the creative industries is that a product is made only once and then sold continuously for many years. A book may take a few months to complete and be published but once it is it could generate thousands if not hundreds of thousands in sales over the years whereas a builder for example would need to build a new wall or house if he wanted to make money.
If a builder earned $500 when he built a large wall, to earn another $500 he would have to build another large wall and this would be an ongoing scenario. To earn $5000 he would need to constantly be laying bricks and building walls. That is not the case in the creative and educational industries.
Musicians create multiple streams of income when they release new songs, albums, DVDs and shows. For many popular musicians their music will be selling for years generating them money well past their retirement days. Think of Elvis, his music is still generating money for his estate. His surviving family probably do not need to work every again. Obviously to sell as well as Elvis you have to be very popular, in fact you probably need to be Elvis.
Bands like The Beatles, The Rolling Stones and ABBA are still big selling artists even though they broke up 30 – 40 years ago – apart from the Rolling Stones, they keep on going, I don’t think a nuclear war could stop them! They – or whoever own the rights to their music – get paid a small royalty each time their music is played on the radio or used in TV and films.
As I write this there is an advert on the TV for car insurance which is playing the song Cars by Gary Numan. It’s a great piece of music which was written in 1979 yet here it is being played on national TV in 2018. It was created and recorded once but still generating money for Gary Numan.
Gary had many hits in the late 1970s and early 1980s but back in those days the music could only generate money when the records were re-published or played on the radio and TV. Today in the new digital age music can be downloaded and streamed anytime anywhere meaning money can be made at any time of the day.
The entertainment industry is one of the best industries to get into when creating MSIs but it isn’t the only one.
Before becoming one of the world’s most popular self development and business coaches Bob Proctor made his first million cleaning offices. He started to clean offices in his spare time to help earn extra money to pay off debts. He was working as a fireman in Toronto in the 1960’s and was earning $4000 a year but he owed about $6000.
After reading Napoleon Hill’s Think And Grow Rich book he started to focus on making money instead of his debts. The opportunity for him to clean an office for money appeared and so he started. One office lead to another and before long he was so busy he couldn’t manage. He collapsed of physical exhaustion and decided that he needed help.
He employed people to clean the offices for him. He took payment from the companies whose offices were cleaned and then paid his workers a wage. He soon built up a business where he was cleaning offices in Canada, the USA and England.
Each office, each city and each country became an income stream. He had multiple income streams pouring money back into his bank account.
Instead of having a weekly wage of $500 as an example, when you have multiple income streams you could be earning 10 x $500 a week. There is no limit to the amount of sources of income you can create. Think of the amount of income streams Stephen King has thanks to his books and films. He has written a lot.
Jack Canfield and Mark Victor Hansen have over 150 different titles in their Chicken Soup For The Soul range of books. They also have other products under the Chicken Soup For The Soul banner.
The great thing about multiple sources of income is that should one drop off you are not left in a mess whereas if you were relying on a wage from a job and you lost that job you would be left earning no money. That is an awful and scary situation to be in but it you have 10 income streams all bringing in – as an example – $500 a month each ($5000 in total) and one stopped performing you will still have 9 more bringing in a monthly income of $4500.
It is hardly a scary situation to be in. You could manage losing several income streams and still feel secure. Obviously that is not what you want to do but you see why MSIs are better to have than a job.
Instead of leveraging your time for money you are leveraging products and people to make money.
So is it time that you considered creating Multiple Streams Of Income?
I shall leave you with one of my favourite sayings while you think over the contents of this article…
“This time next year you will be glad that you started today.”