Life Lessons Personal Finance

Multiple Stream of Income

Are you currently earning from multiple streams of income? How many income streams do you currently have?  How many ways does money come to you? 

Some people rely only on their job to earn money.  That’s their only stream of income.  The danger of having only one income source is that once you get fired the money stops and you are forced to find another way to earn money.  This is even more risky during a recession because it is harder to find another job.

Other people earn very high income using their specialized skills.  Doctors, lawyers, dentists, architects, consultants, small business owners earn a lot of money – which is good, but for some, it stops there. 

Most professionals have only one income stream – working using their specialized skill.  If they stop working, the money also stops.  When their skill becomes obsolete, they are forced to accept a reduction in pay to make money.  Or worse, to shift to another profession.

The few who are really rich in both money and time, have a different strategy. They build multiple streams of income.  They earn money through various ways.

For example, really big businesses like the SM malls of Henry Sy not only earn from you when you buy groceries from its SM supermarket, but it also earns income from the stores who are renting their mall space.  That’s creating multiple streams of income.

So what streams of income are available?  In what ways are other people earning residual income today?  Here’s a list of the many types of passive income streams from the book Multiple Streams of Income by Robert G. Allen.

  • Savers earn interest
  • Songwriters earn royalties on their songs
  • Authors earn royalties from their books and tapes
  • Insurance agents get residual business
  • Securities agents get residual sales
  • Network marketers get residual commissions
  • Actors get a piece of the action
  • Entrepreneurs get business profits
  • Franchisors get franchising fees
  • Investors get dividends, interest and appreciation
  • Visual artists get royalties from their creations
  • Software creators get royalties
  • Game designers get royalties
  • Inventors get royalties
  • Partners can get profits
  • Mailing-list owners get rental fees
  • Real estate owners can get cash flow profits
  • Retired persons can get pensions
  • Celebrity endorsers get a percentage of gross profits
  • Marketing consultants get a percentage of profit or gross revenue

Since the list was written about 10 years ago, it obviously doesn’t include how some people are now earning money online through the internet.  If I may add to the list,

  • Some bloggers earn money from every Google Adsense ad clicks on their sites
  • Popular bloggers earn money from paid advertisement on their sites
  • Online retailers earn money selling their stuffs online
  • Giant online retailers earn profits by selling other people’s stuffs online

How about you?  What can you add to the list? What additional income stream are you earning money from today?

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