If you’re like most people, you’ve got one stream of income – your job. And if you’re like most people you are either poor or stuck in the middle-class. If you want to break out of poverty or the middle-class you need to begin creating multiple streams of income.
“But I’ve got two kids, weekends filled with running around from one sporting event to the next for my kids, kid birthday parties to attend and already too much job-related work on my plate as it is. How on earth am I supposed to find the time to add another stream of income?”
I agree. If you’re raising a family it’s not easy. It’s already hard. But, understand this, as your kids get older, it gets easier. As they near college age, your kid-related commitments begin to decline. You will eventually have more time to commit to growing those income streams. Now, while you’re kids are young, is actually the best time to take baby steps and begin slowly building something on the side. I’m talking about no more than five to ten hours a week here, devoting yourself to something you are passionate about and that can eventually be monetized. I’m talking about investing in yourself and your future now, so that you can reap the dividends down the road. And trust me, you’ll be glad you did because as your kids get older, their financial needs become larger. Think college tuition, funding marriage, helping them with a down payment for their own home or helping them fund college for their own kids.
Let me share some of my data with you from my Rich Habits Study:
- 76% of the wealthy in my study were self-made millionaires. They came from non-wealthy households. 31% of these self-mades came from poor households. 45% came from middle-class households.
- 16% (38 out of 233) became wealthy between age 46 and 50.
28% (66 out of 233) became wealthy between age 51 and 55
31% (73 out of 233) became wealthy between age 56 and 60
21% (48 out of 233) became wealthy after the age of 60
- 65% of the self-made millionaires in my study had 3 streams of income.
- 45% had 4 streams of income.
- 29% had 5 streams of income.
It didn’t happen all at once. Every single self-made millionaire started small. One additional stream, then two, then three and so on. Each additional stream they added gave them additional wealth that they could invest into another stream. It took the average self-made millionaire in my study 32 years to become rich. It just takes time. Time is going to pass you by no matter what. Time does not stop. In 32 years, you’ll still be 32 years older, whether or not you build those additional income streams.
But for those who do invest in themselves and their future, the dividends are enormous. Those income streams will eventually kick off enough income to allow you quit your full-time job and allow you to hire individuals to help you manage those streams. This will free yourself up to enjoy the dividends: vacation homes that become a hub for your now older kids, financial independence so that you don’t become a financial burden on your children, a retirement free from financial worries and money to help your children buy their own homes and fund college for their kids, your grandkids.
If you want to make your life easier down the road, you need to invest in yourself now. Find something you are truly passionate about and that has potential to generate an additional stream of income. Passion is the key. Passion is, by far, most important attribute of self-made millionaires. It is the catalyst that transforms ordinary individuals into self-made millionaires. When you pursue something you are truly passionate about, your are somehow able to find the time to devote to it. But you’ll never find your passion unless you try. You must take action and invest in yourself today in order to create the future life you desire.