Multiple Income Streams
In these times of uncertainty both financial and employment the key to long term security is diversification. Two principles are paramount.
1) Ones income must be based on multiple income streams. (Nine or more)
2) Invest your capital only in ventures where you control the outcomes. Therefore the only acceptable risk is your own personal performance or judgement.
My personal portfolio of income streams include:
- Real Estate Brokerage Income
- Real Estate Sales/Commission Income
- Real Estate Sponsorship Residual Income
- Apartment Rental/Investment Income
- Self Storage Property Management
- Self storage Development Income
- Capital Gains on Real Property
- Mortgage income
- Bank Interest on Cash Reserves
- Mortgage Referral Income
I also have a small interest in the on line media field that is not yet in positive cash flow but will soon add to my list. As you will note there are no mutual funds or arms length control of my assets other than cash or near cash deposits or mortgages that I directly oversee.
The fundamental premise is that of diversification of income as well as personal control. When one thinks about the number of investment bankers at Lehman Brothers that were earning more than $300,000 annual it is no wonder that the investors were bound to lose out sooner or later.