Have you tried balancing on one leg? It will be extremely hurtful and, in all probability, you will fall after some time. It is not only stressful but highly risky to stand on one leg – the same holds true in your financial life.

If you stand on one leg, you will definitely fall and hurt yourself.It is surprising that so many people keep standing on one leg financially all their lives.

To be financially stable you have to stand on minimum two legs:

Employee + Investment
Self Employed + Investment
Business + Investment

Investing and creating passive income is the key to your financial stability whether you are an employee, self-employed or in business.

There is a view that only people in jobs are financially vulnerable. You will be surprised to learn that even very smart businessmen do not invest and their financial empire collapses because of this reason.

Businesses, as they grow, demand more and more capital. In some cases, businessmen continue pouring money in expansion of their business rather than investing a part of their profits outside their business to gain financial stability.

All businesses have a life cycle that eventually come an end. The business life cycles have become shorter and more compressed due to rapid advances in technology. Sooner than later all businesses collapse as they come to the end of their life cycle.

Even a most profitable business standing on one financial leg is unstable. Smart businessmen, however, choose to do otherwise: Bill Gates sells his shares of Microsoft every year and invests in other areas to continue growing rich. His current holding in Microsoft is only 4%. Yet he continues to one of the richest men on earth.

Salaries or businesses are just sources of cashflow. You should not mistake them for wealth even if you are earning a lot of money.

The strongest financial legs are: business + investor, because you generate excessive cash flow from a well-run business to invest in passive income investments.

Employees and self-employed people are limited in their capacity to create excess cash flow for investing because they do not have tax advantage, leveraging power or time freedom for wealth creation. They can become wealthy if they invest intelligently but will find it extremely difficult to create accelerated wealth.

It is important to understand the difference between being rich and wealthy. A rich person can have a lot of money and possessions but a wealthy person has adequate passive cash flow to fund his or her lifestyle whether they work or not.

You will be surprised to know that there are very rich people in high paying jobs who will not be able to sustain even a very basic lifestyle if they were to lose their job for some reason or their business fails.

Standing on two financial legs is an absolute must. What if you were standing on four financial legs? Have you seen a mule it does not slip even on a most dangerous slope? What if you were a centipede with 100 financial legs then will it matter if one or two of your financial income sources dry up. You will still have 98 legs to support you. Won’t you sleep more peacefully at night and lead a stress free life? And won’t your family feel more secure.

If you examine the rich you will find that their income is like the river Nile. They have several streams of income pouring in from different sources to create a huge cash flow of residual wealth.

Hi,I’m Praveen Kumar! I’m here to show you through my own experience and experiments exactly how you can successfully build multiple stream of passive income.