Creating multiple streams of passive income initially can be overwhelming and hard work. Listed below are few practical steps that will help in creating different streams of income in a systematic manner.
Make a Schedule
Take some time out each day to create residual income. You have to shift from the linear income trap to create a residual income that will someday grow more than your job income. You will not be able to achieve this in a single day – it will take time. Make small changes to your daily schedule to incorporate time for creating some residual income. Devote more time each day towards creating residual income, as your residual income increases and dependence on linear income goes down. You can only succeed if you target achievable goals, make a schedule and remain focused.
Know the Difference between Maintenance Work and Growth Work
There is no such thing as a totally passive income. Every passive income will have some maintenance work. It may not require your day-to-day involvement but monitoring of work will be needed. Even as you carry out maintenance work, you should be on the lookout for new growth opportunities. Growth work creates multiple income streams.
Engage in Only One Growth Activity at a Time
There is no point dissipating your energy on several growth opportunities simultaneously—you will inch slowly towards these opportunities. It is better to focus on one growth opportunity at a time; creating a successful residual income from it before moving on to another growth activity.
You will make money more efficiently by following this simple strategy without overwhelming yourself: let us say, you have 4 growth projects that will take one week each to execute. If you start all of them simultaneously, it will take you four weeks to complete the projects. If you follow this strategy, you will have residual income coming from your projects after 4 weeks.
Now let us say that you decide to take one project at a time. On completion of the first week, you will have one income stream bringing in residual income. At the end of the second week, another stream of income will go online and so forth. This is a far superior strategy as you will start generating residual income much quicker without stressing or overwhelming yourself. This is a very simplistic example because it takes much more than a week to start creating a residual income stream.
The More the Merrier
The more residual income streams you create, more financial security you will have. Small trickles will result into a stream and small streams will result into a river someday. Don’t discount the little ones.
A website may pay you $50 in a year, which is fine as long as it does not take your precious time in maintenance. Your passive income sources can be shares, government bonds, mutual funds, interest earned from bank accounts, blogs, affiliate sales, email marketing, royalties from book sales, etc. Each of these can create a small residual income stream for you.
Not all Passive Income Streams are Worthwhile
Not all remaining income streams are equal. Some may require more maintenance effort than others. You may need selling some of your income streams if they become irksome. I sell my properties that are difficult to manage or have very little cash flow. By selling, I create time for myself and redeploy the capital into something that can generate better residual income for me.
Don’t Burn Bridges
You might push aside certain income stream to generate higher efficiency—it does not mean that you should turn off the tap altogether. Keep monitoring an income stream by visiting it periodically. If the circumstances and economic conditions change then, you should be in a position to take advantage of that income stream.
Quickest Method of Creating Residual Income is Buying Paper Assets
If you have some capital sitting idle, then buy paper assets that generate the highest rate of return – it is the Warren Buffet formula. You buy an asset for cash flow. The capital gain will happen if the asset you have purchased has proper management behind it.
Generate Multiple Streams of Income Online
The Internet is the fastest and easiest way to generate multiple streams of residual income with the least amount of investment and risk; it is effortless to automate your online business. Why most people fail to generate income online is because it is relatively easier to create a website but challenging to drive traffic to it.
Without traffic, there are no sales – traffic is the lifeblood of online residual income. You have to master traffic techniques before you can create a successful online business. So spend some time, effort and money in learning how to generate traffic. Once you master traffic skills, then creating multiple streams of income on the internet will become relatively more straightforward.
I cannot over emphasize the importance of making a shift from linear income – where you trade your hours for money – towards creating a residual income where money and systems work for you day in and day out regardless of your presence; it is perhaps the most important secret of wealth creation.
If you carry one message from this article, it is that creating residual income is the most important step towards gaining financial freedom.
Creating multiple streams of residual income is a step further and a very desirable objective, provided you implement the strategy properly. With little effort, you can leverage your existing resources and knowledge to create additional revenue streams.
There will be challenges along the way as you will need to shift your thinking and acquire new skills. You will radiate with joy and confidence when you see small streams of income joining to become a full flow of residual cash, which will bring prosperity to your family and loved ones for generations to come.