(...Continued
From Money Tree Part 1)
The Wisdom of Multiple
Streams of income.
How many streams of income
did it take in the 1950’s for a family to survive? One.
Today, very few families can survive on less than two streams
of income. And that won’t be enough in the future. It’s
a volatile future. You’d be wise to have multiple streams
of income flowing into your life.
Prosperous people have always
known this. If one stream dries up, they have many more to
support them. Ordinary people are much more vulnerable. If
they lose one of their streams, it wipes them out. And it
takes them years to recover.
In the future, people will
need a portfolio of income streams -- not one or two -- but
many streams from completely different and diversified sources.
So that if one streams goes, you barely feel the bump. You’re
stable. You have time to adjust. You’re safe.
Do you have multiple streams
of income flowing into your life at this time? Maybe it’s
time to add another one.
The Power of Residual Streams
of Income
So let’s assume that
you’ve decided to add another stream of income to your
life. You could always get another part time job, but that’s
not the kind of income I’m talking about. You certainly
don’t want to get stuck on somebody else’s treadmill.
You want the kind of streams that you can own.
I’m talking about residual
income. That’s a fancy term for a "recurring"
stream of income that continues to flow whether you’re
there or not. I’ve heard too many small business owners
say, "I haven’t taken a vacation in 5 years."
There’s something wrong with that picture. I don’t
have anything against hard work. But after a few short years
of hard work, you should be free to have your streams of income
forwarded to your mailbox in Tahiti. Get the picture?
Two Types of Streams: Linear
and Residual
Not all streams of income
are created equal. Some streams are linear, and some are residual.
Here’s the question that tells you whether your income
streams are linear or residual:
"How many times to you
get paid for every hour you work?"
If you answered, "only
once," then your income is linear. Income streams from
a salary are linear. You only get paid once for your effort.
And when you don’t show up for work, neither does your
paycheck.
With residual income you work
hard once, and it unleashes a steady flow of income for months
or even years. You get paid over and over again for the same
effort. Wouldn’t it be nice to be compensated hundreds
of times for every hour you work?
For example, as I mentioned
earlier, I published a book in 1980 called Nothing Down: How
to Buy Real Estate with Little or No Money Down . I put in
over 1,000 hours of hard work writing Nothing Down before
I earned a single penny. Teenagers working at McDonald’s
earned more than me. But, I wasn’t looking for a salary.
I wanted a royalty. So I was willing to sacrifice. It took
over two years before the money started to flow. But it was
worth the wait. I’ve now earned millions of dollars
in royalties. And every six months I still get nice royalty
checks. That’s the power of residual income...it keeps
flowing and flowing and flowing.
Here’s another example.
Have you seen that tiny battery tester on the Duracell battery?
I’m told that the inventor presented his idea to the
big battery companies. Most turned him down, but Duracell
saw the genius of it and agreed to pay just a few pennies
per battery pack for his idea. And now he makes millions,
because those residual pennies add up. In essence, he invested
many hours of his time to create the concept, to package it
and then to sell it. And now it generates a raging river of
residual riches to him and his family. And the best part about
it – HE DOESN’T HAVE TO BE THERE! It flows without
him.
Linear vs. Residual. Do you
see the difference?
The secret of the wealthy
is not that they have more money but that they have more TIME
freedom. Because many of their streams are residual, they
have time to spend on anything they want.
When you view people’s
lives through the filter of residual income, many groups of
people aren’t as wealthy as they appear. Doctors and
dentists don’t earn residual income from their labors.
Their income potential is capped. They can only see a fixed
number of patients in a day. And they have to be there for
every single one of them. That’s linear.
The same holds true for top
sales people, chiropractors and attorneys. Most of them don’t
enjoy the power of residual income either. They may appear
to be rich but they’re on a treadmill just like the
rest of us.
What percentage of your income
is residual? If you’re smart you’ll start shifting
your income streams from linear to residual. This will give
you the time freedom to do what you want when you want. And
that starts with turning on at least one new residual stream
this year.
There are many, exciting new
ways of creating residual income
Do you know who Warren Buffet
is? He’s the smartest stock picker in history and the
wealthiest investor in the world with a net worth in the tens
of billions. What if Warren Buffet himself were to call you
on the phone and give you a hot stock tip. He tells you to
sink every penny into a certain stock. He says that he’s
invested a couple of hundred million of his own money and
he feels the stock is a sure bet to double or triple in value.
What would you say to him? "Sorry Warren but I like to
pick my own stocks by throwing darts at the Wall Street Journal!"
Would you listen to the master or continue to do things your
own way?
Well, I’m no Warren
Buffet, but through my books and seminars I’ve probably
helped to create more millionaires than he has. If I were
to guess, it’s probably in the thousands of millionaires.
And this book contains all of my "hot streams" for
the new millennium.
It’s where I’ve
sunk a huge amount of my own time and effort. What I am about
to share with you are the best opportunities I’ve seen
in 20 years. They are certain to create many residual millionaires
in the next 10 years. You could be one of them.
(Continued
In Money Tree Part 3...)
Authors Details: Robert G. Allen -
Prosperity, 7 Secrets.
His colossal bestseller Nothing Down established Robert
Allen as one of the most influential investment advisors
of all time. Also the author of 'The One Minute Millionaire' |
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