Four Reasons Why You Should Have Multiple Revenue Streams
.There is nothing better than having options: Multiple revenue streams put you in positions of ownerships; which means when someone spends, you get paid too!
As an owner/shareholder, your participation in the economy is not merely as a consumer, you are also benefiting from the spending habits of others. It also allows for you to have options in your life; and who doesn’t like to have options?
Having options gives you more leverage in negotiating and allows for you to determine what you will and won’t accept. You can create financial options simply by spending less on things that won’t generate money so that you can fund a project that will!
Alternatively, you can invest in existing businesses, high-tech startups, such as Fully-Verified and take a percentage of the profits. Dividends, Stock options, Partnership payouts, etc are examples of this. Either way, it is important to channel your spending habits towards investments that will pay you back! With INTEREST THAT IS! Long are the days when our economy provided access to wealth to a larger demographic of persons rather than a select few. This has necessitated that we change our strategy for wealth acquisition and with it our attitudes towards “premium” education.
2.Your skill sets, expertise, and relationships are investments…manage them as such!: Education is an investment that should provide you with an adequate return. It should not leave you with significant debt and insufficient opportunity. Many people are going into serious debt assuming that having that education guarantees that a Corporation must give them a job.
Our current economy doesn’t provide any such guarantee. This is why I advocate that we focus on channelling our skill sets in ways that diversify our revenue streams to provide us with income from multiple sources. In doing so, we protect ourselves from the financial uncertainty associated with the job market .Furthermore, we put our knowledge to use across a diverse set of initiatives that may provide higher returns than settling on just one use.
This is a concept that investment managers use to diversify risk using different types of stocks and bonds. The best way to determine if your education is worth the investment is to perform a reasonability test. One of my favourites is this question, “Will having this education allow for me to create an independent revenue stream for myself that isn’t 100% reliant on a Corporation hiring me?”
If the answer is yes, then this is most likely a great investment. For example. If you paid 120k for a degree and a company is not hiring in your select field, you should be able to use that 120k worth of knowledge and exposure you acquired to create a revenue stream that pays you. A good education should equip you with the tools, experience, and relationships to do so. If not, you may have to consider your education, a not so good investment.
3.Subsidizing unexpected or larger purchases: Nowadays having one source of income alone does not give you the ability to spend in a more flexible manner . So when the car is due for relicensing , or any other major purchase comes up, your entire salary could be consumed with no buffer for anything else. But having multiple revenue streams gives you a lot more leeway to still go out to dinner, pay your life insurance and still save up for that trip to Bahamas!
In business, we call this notion of financial flexibility, working capital. It allows businesses to take advantage of opportunities and prevent potential issues. Having the financial flexibility to pursue your dreams, alleviate a problem, or assist someone else, are all tools that help to create a more stable society. These can best be achieved when you are not relying on 1 source for your livelihood. Furthermore, revenue streams if managed properly can last for generations which brings me to my final point… our role in creating generational wealth.
4.Creating Bermuda Fortune 500 Companies requires generational wealth: Since most of you can’t pass on your Corporate job to your child, having your own businesses, partnerships, and investments are a great avenue for passing on generational wealth. Many of these world renown Fortune 500 companies that we hold in high revere started out as very small mom and pop business ventures.
The little wealth generated from that small venture was passed on with each generation growing and expanding it. What we see now is a by-product of the accumulation of wealth , expertise, and efficiencies for hundreds of years.