Check out our new audio content!
Getting your Trinity Audio player ready...

By Linda Pliagas

Never before have investors been so painfully reminded of the importance of diversification.

The COVID-19 virus has shuttered businesses and devastated finances. Now more than ever, having multiple streams of income should be the goal of every person.

It’s time to take massive action to fool-proof your family’s income.

Whether it’s taking on a part-time “side hustle” or writing a book or product that can provide residual income, investors need to expand and explore all options.

Image by mohamed Hassan from Pixabay

Let’s review the numerous ways income can be generated. The Internal Revenue Service categorizes seven income streams:
  1. Dividend income from owned shares of stocks or mutual funds
  2. Earned income from a JOB – “just-over-broke” method
  3. Passive income from rental real estate – the obvious choice
  4. Royalties from selling the rights to written or invented works
  5. Capital gains from sales of appreciated assets
  6. Profits from businesses owned and/or controlled
  7. Interest from savings, CDs, bonds, or other private-lending activities

Be honest, how many income streams do you currently have? What about your spouse? Do you each individually have more than one source of income?

Hopefully, each individual has a couple of sources of steady cash flow.

And now that you’re part of our ambitious network, an immediate goal should be to secure additional money channels.

Proactively allow the flow of prosperity into your household by developing numerous income streams. Perhaps it’s time to obtain your real estate license to add another dimension to your rehab business, or develop a software that others in the industry can benefit from.

The sky is the limit, really. Just keep aiming for: Residual Income.

Residual income and rental income from real estate, is taxed at a lower rate than income that is earned. Therefore, many sophisticated investors I know concentrated on building passive income streams.

How can you add Passive Income Generators (PIGs) into your life in the midst of an economic disaster?

The first step is to analyze the family numbers now as they are. Make a monthly budget, document where every dollar goes: mortgage, utilities, groceries, car payments, gas, home maintenance, property taxes, insurance, medical, education, entertainment, miscellaneous, and savings. Shockingly, most people have absolutely no idea where their money goes every month!

Before more abundance can enter a person’s life, they need to be worthy of managing what is already under their direction. Take a look at the numbers constantly.

Image by Megan Rexazin from Pixabay

Now is the time to cut all unnecessary expenses. Make sure to eliminate waste, discover ways to invest — with a goal of adding more MSI’s into your life (Multiple Streams of Income).

Get into the habit of analyzing your monthly budget, trim expenses, invest diligently, always planning and seeking opportunities.

With real estate, figure out what is best for your family: Should you rehab and sell for profit? Buy and hold properties long-term? Perhaps invest or start a syndication? Maybe you prefer to keep it basic and wholesale properties? How about buying notes or investing in trust deeds? Let’s not forget tax sales, self-storage, and the other niches that always lead to riches.

Fortunes will be made once the dust of uncertainty settles, prepare for it.