Friday, November 11, 2011

How to Protect Yourself - Multiply Your Income Streams

Having just one source of income today could be a recipe for DISASTER ! Do you think that most Wealthy people have just one source of income ? Not likely.

Most people today work at a job full time and have no time to work at a second job etc. However, this is not exactly what I am getting at. Each person has only so much time in a day, that is obvious. Generally, eight hours per day five days a week is considered full time employment. If a person is to take on a second job in their so called spare time, this can add a lot of stress to their life. Also it can make them too tired to function properly in their full time job. I would not recommend this situation to most individuals.

Would it not be much better to find ways to earn income without taking a lot of your time ?  Of course it would. This is called investing !  You simply trade some of your savings for an income. There are many forms of investing but not all of them pay you an income. In fact, some are very risky and you may even lose all of your savings. Remember, if something sounds too good to be true, it usually is.

There are many good sources of investments that will pay you a monthly income, such as stocks, income trusts, reits, and individual rental real estate, to name a few. The trick is to find the ones that will pay you the most income with the least amount of investment dollars and risk.( risk meaning the potential of losing all of your investment dollars).

Each investment you make ( and earn a monthly income from ) is called an income stream. These investments will pay you a monthly income for as long as they keep earning that income from within their structures.The more of these income streams that you can add, the more your monthly income will be.In fact, some day these income streams could even bring in more income than your full time job.

Having these income streams means that your future is much more secure. If you should get laid off from your job, for instance, your income streams could help pay some of your expenses until you find another job.

How you choose these investments that create income streams is up to you. There are many, many choices, however, not all of them are suitable to each individual. Some are far too risky and should only be considered by the seasoned investor who understands the risks. The point here is to be careful, especially when starting out.

Multiple income streams, when chosen properly, will provide years of income and protection for your growing financial life.

As always, I welcome your comments and suggestions for future topics.

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