The First
is active income. This is your full-time salaried or part-time hourly job. It also umbrellas side hustles like freelance work, Uber driving, Fiverr gigs, etc. It is the process of trading your time for money.
The Second
is passive income. These are earnings that may not require as much hands on work, including investing, real estate, e-commerce, royalties, etc. This allows you to have some financial flexibility outside of your 9–5, without having to necessarily be present to reap the benefits.
understanding how to build up multiple revenue streams combining both active and passive income.
A lot of people settle on their career salary, or sit on it for a decade before making a move. If your ambition is to be average, then that mindset is fine. But to be in the top tier of wealth, you need to start figuring out different ways to make money simultaneously.
Right now I am operating on 4 income streams:
- Full-Time Marketing job
- Medium Partner Program
- Freelance Writing
- Savings Investments
By the end of 2020 I hope to have added at least 4 of the following to that list:
- Personal training
- Paid surveys
- Business or real estate investing
- Robo adviser investing (Betterment, Acorns)
- Book sales
- Ghost writing
- Educational webinars
On their own, these income sources are good, but rather modest. When combined, they elevate me to a different level of success.
Ashton Kutcher is a great example. You may know him as the famous film/television star. He’s had a respectable career and made a lot of money. But even if he never received another movie role again, Kutcher would still be wealthier than 99% of the world due to his diversified portfolio of revenue streams. Since the early 2000’s he’s owned a production company, invested in tech startups, and formed a venture capital firm.
Wealth is more than money. It is a series of learned strategies and behaviors.
“If we command our wealth, we shall be free; if our wealth commands us, we are poor indeed”- Edmund Burke
This process won’t happen overnight. I’m sure most people reading this don’t have more than a few income streams yet.
If you do, fantastic. You’re already on the path to a wealthier future.
If not, don’t panic.
Even if you only have one that’s fine. Your goal should be to get the ball rolling on researching the opportunities that exist out there to make more money.
Start with something easy like investing a small percentage of your paycheck. Over time you can build out different income streams until your side earnings are matching your salary. Then push for more.