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TOM@RICHHABITS.NET
I learned the rich don’t rely on one paycheck. They rely on multiple pay checks by building multiple streams of income. In my Rich Habits research, detailed at www.richhabits.net, I studied 233 wealthy people for five years and found 65% maintain three or more income sources. Only 5% of the poor do this.
I learned from the poor that one job is a trap. The wealthy know this trap and avoid it. They create rivers of money—side hustles, investments, businesses. Forbes and the IRS back me up. Multiple streams pave the road to wealth.
I discovered the rich diversify with purpose. They don’t bet on one boss. A 2019 Forbes article notes 45% of millionaires have at least two income sources, like real estate or dividends. The IRS, in a 2020 report, says high-income households earn 30% from investments, not wages. My data aligns: 65% of the wealthy build multiple income streams like real estate rentals (20%), part-time ventures (15%), or passive investments (30%).
Ninety-five percent of the poor, I found, depend on one job. It’s a thin rope, ready to snap.
Why do I stress diversification? It’s wealth security. It’s income insurance.
One income can vanish—layoffs, sickness, markets turn.
My Rich Habits articles show 80% of millionaires say multiple streams ease financial worries. When one income stream is negatively affected by an economic downturn, they lean on their other streams of income to get them through and recover from the downturns in the economy.
A 2021 Entrepreneur study agrees, noting diversified earners recover 40% faster from economic hits.
I saw the rich grow wealth faster, too. Compounding their wealth from rentals, dividends, or gigs. One tech millionaire I studied had a salary, stock options, and a blog earning $10,000 monthly. Three streams, one big fortune.
I tell you, starting is simpler than it sounds. My research shows 51% of millionaires began with low-risk ventures. A 2023 CNBC report on Sara Blakely shows she built Spanx while keeping her day job. I advise starting small: freelance, sell a course, buy dividend stocks. My blog at www.richhabits.net suggests five hours weekly on a side hustle. Upwork’s 2022 data says 36% of Americans freelance, earning $1.3 trillion yearly. A $500 monthly gig, invested at 7%, grows to $200,000 in 20 years. I’ve seen it work in the millionaires I studied.
The rich don’t leap blindly, however. My findings show 71% of millionaires weigh risks first before investing their time and money into creating a stream of income. A 2020 Journal of Financial Planning study says put no more than 10% of income into new ventures. I saw the rich spread risk: one owned rentals, another sold e-books, a third traded ETFs. One failure doesn’t break them. Because they diversify their wealth by creating multiple streams of income.
I urge you to start today. List three skills you can sell—writing, coding, teaching. Research one investment: a stock, a rental, a course. Devote five hours a month to creating that new stream of income. My Rich Habits Research Summary, free on my site, shows 65% of the rich built multiple streams of income over many years. Eighty percent said their multiple income streams made them wealthy.
One paycheck is a cage. I say break out of your cage.
Build streams. Grow rich.
Tom Corley is an accountant, financial planner and author of “Rich Kids: How to Raise Our Children to Be Happy and Successful in Life”, Effort-Less Wealth, Change Your Habits Change Your Life, Rich Habits Poor Habits and “Rich Habits: The Daily Success Habits of Wealthy Individuals.”
