Why Create Multiple Streams of Residual Income?
Prosperous people have always known that if one stream of income dries up, they have many more to tap into for support. Ordinary folks are much more vulnerable. If they lose one of their streams, it wipes them out.
In this fast changing uncertain world, you need a portfolio of residual income streams from completely different and diversified sources. If one stream empties, you’ll barely notice. You’ll be stable. You will have time to adjust. You will be safe.
The key to wealth and happiness in today’s world is to create multiple streams of income using diverse models that give you combination of high Cash Flow and Residual Income.
Cash Flow will support your life style and pay your bills. Residual Income will build long term wealth.
Problems Faced in Creating Multiple Streams of Residual Income
The concept of creating financial security through multiple streams of residual income is very appealing. You diversify your investment and business risk. However, the problem lies in its implementation.
Instead of creating a relaxed life style, you can get sucked into a situation where you have to become hyper active in trying to control and maintain your residual income sources.
Financial success comes from focused attention to one specific outcome. The effort in creating multiple streams of income diffuses your focus and creates extraordinary demands on your limited time. It can cause undue strain and stress on your life.
Your chances of failure increase in proportion to your defused focus. In order to succeed in creating multiple streams of residual income you have to learn to reconcile two seemingly contradictory realities of how to focus and also create multiple streams of income at the same time.
There is also a need to balance our family, health, relationships, recreation and spiritual needs. Happiness lies in balancing our needs correctly rather than focus only on one aspect of life. Financial security is extremely important, but it must not be allowed to dominate every aspect of our lives.
The Right way to Create Multiple Streams of Residual Income
The right way to create multiple streams of income is to focus on building One Business Stream first.
Once you have created your first income stream you must automate your income stream so that it does not require intervention on a day to day basis. There will be some maintenance required, but if you put proper systems into place then the time required for maintenance can be minimized. You will need to invest in right systems and technology to automate your business.
Once your first business is in profit you will need to leverage your income from this opportunity to create additional streams of residual income. Your first income stream is the most important one because you are going to leverage your knowledge and resources from this business to build other income streams.
The second income stream is just the Repeat Process of the first income stream. You can now make improvements based on your experience in creating the first income stream. You will also need lesser time, effort and money because of your experience. The returns from your second income stream will normally be much higher than your first venture.
Once you hit on a successful residual income formula just keep refining and repeating it. Creating residual income can at times be a very boring process. The money part is of course very exciting.
Be warned…..Human mind wants excitement. It will ask you to try out new ventures and divert your resources. You have to resist this temptation and keep focused on repeating and maximizing your success formula.
Maintenance Work and Growth Work
You have to understand the difference between Maintenance Work and Growth Work. There is no such thing as totally passive income. Every passive income will have some maintenance work.
It may not require your day to day involvement, but monitoring 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.
You should focus on one growth opportunity at a time. Create a successful residual income from it before moving on to another growth activity. You will make money efficiently by following this simple strategy without overwhelming yourself.
Not all residual income streams are equal. Some may require more maintenance effort than others. If you have to create multiple residual income streams you have to find business opportunities that require less maintenance work.
Why most people fail to generate income online is because it is relatively easy to join a business opportunity but difficult to drive traffic to it. Without traffic, there are no sales. Traffic is the life blood of online residual income