- Risk Management – The more income streams you have, the less worried you will be when times are lean.
- Reduce or eliminate debt quickly.
- Allows you to follow your passions – your job is not always your passion. You can work on turning your passion into your main income stream.
- With multiple streams of income, you can comfortably fund the tax advantaged accounts at your employer.
- With side businesses, you can optimize your tax strategies.
- You can become Financially Independent and Retire Early, years earlier than you’ve ever dreamed possible.
Throughout our working career, Mrs. FiredUp and I have maintained multiple steams of income. This included me working full time for a salary, Mrs. FiredUp working part time on her business, as well as both of us always working on our other business interests outside our regular jobs. Before I left my full-time job to pursue my ambitions in consulting, I worked on this venture with a business partner, my wife, and my sister-in-law. “The One Minute Millionaire” by Mark Victor Hansen and Robert G. Allen was the focus of our small Masterminding group. One of the businesses born out of this work was a successful consulting business. During the first year of this business, I continued to work full time and supported the business until such time that the revenue was sufficient to support our salary replacement. I then left my full-time employment to work on the consulting business full time. In fact, our first large contract was with my former employer. We continued running this business for many years as our primary income source.
Mrs. FiredUp and I have always lived on part of one salary, saving the excess, and saving the entirety of Mrs. FiredUp’s earnings. Any income as a result of our side hustles typically went directly into our savings and investments. We developed multiple streams of active and passive income in these side hustles. This approach was clearly the main driver to us becoming debt free, Financially Independent at age 46, and me Retiring Early at age 49.
Multiple Sources of Income Mrs. and Mr. FIREdUP have worked, always paying cash:
- Long term investments in equities and bonds
- Real Estate
- Buy, Rehab and Flip
- Buy and hold – Rental Property and Vacation Rentals – Multiple Properties generating positive cash flow
- Private Mortgages
- REITS – Real Estate Investment Trusts
- Part-Time Businesses
Resources related to Multiple Streams of Income: https://www.amazon.com/s?k=multiple+streams+of+income&hvadid=77927939011564&hvbmt=be&hvdev=c&hvqmt=e&tag=mh0b-20&ref=pd_sl_1hczkgt6ze_e +
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Next week’s topic: Think Exponential rather than Incremental