Multiple Streams of Income has become the catch phrase of the new century. This can be a terrific idea, since it means that we are receiving income from multiple sources and should mean that if one stream dies, then we will still be okay financially.
So the question arises, how do you create multiple streams of income and still focus on one or two asset classes for my investing? After all, if you are not focused, how can you possibily achieve success since your time and effort will be scattered such that you in effect become a “jack of all trades and master of none?”
Let me respond by referring to a trio of famous wealthy individuals – Donald Trump, Warren Buffet and Bill Gates. Each of these men become rich and famous by becoming a master in one type of investing. For Mr. Trump, it was commercial real estate development. For Mr. Buffet, it was fundamental investing and for Mr. Gates it was computer software. So clearly, these three were very FOCUSED on one asset type and that is how they became wealthy.
But did their focus really keep them from also having multiple streams of income? Not at all. Donald Trump has income from multiple real estate projects. Warren Buffet has income from multiple corporations in which he has invested. And Bill Gates receives income from a wide variety of software products.
The key is that each of these people specialized in one investment or asset type and created multiple streams of income within their chosen specialty.
The problem I see with many investors is that they misunderstand the concept of multiple streams of income and think this means they have to be in multiple types of business and investments. I honestly do not know any really successful investors who have spread themselves thin throughout a number of different types of assets. I’m sure they are out there, but they are rare. Far more common are the wealthy individuals and families (e.g., Hilton, Campbell, Rockefeller) who have developed multiple streams of income within a single asset class.
Always remember to maintain your focus. With focus, knowledge, wisdom and protection, you can become as wealthy as you desire.