I recently had a consultation with my Financial Advisor and she asked me what I thought my “Most Important Asset” is. Like most of us, I immediately said “My Home” or my “401K”. Wrong, She said, Your most important asset is “your ability to generate income”. If you could not generate an income for the next two years, every other asset will be gone in an instant.
This leads me to a share a short but unfortunate story with you. One of my friends just fell on hard times. These couple had a beautiful a daughter that attended a private school, a very nice house, two luxury vehicles, etc. Wife was a Doctor and Husband was a Petroleum Engineer. Unfortunately 6 months ago, during childbirth, the wife had some complications that would prevent her from ever being able to work again, and 3 weeks later, husband got laid off from work due the slow down in the Oil and Gas industry. These couple went from being at the top of their games to the brink of bankruptcy in less than two months. It was at this moment that this couple realized that their most important asset is their ability to generate income.
Like anything in life, if it is very important, we tend to create a backup just in case the primary fails. Examples: Airplanes have multiple engines, Cars have emergency brakes, and Humans have two eyes, hands, legs etc. It is important to have a backup for your “Most Important Asset”
My preferred way of backing up my “My Most Important Asset” is investing in Income Producing Real Estate but yours can be a myriad of other vehicles. I will like to give you 3 steps on how to successfully generate “Multiple Streams of Income” from Todd R. Tresidder of Financial Mentor.
- Focus and Master Your First Stream of Income : If you read my book “Success Made Simple”, In Chapter 5 of the book, I discussed that having Goals and focusing on one or two goals at a time is critical to success. In light of this, it is important to focus on one source of Income at a time. Focus on and Master Your First Stream Of Income. As the popular saying goes, “your first million is the hardest”. The first stream of income will be toughest, then it gets easier. Pick a stream that has unlimited potential and can eventually outsourced or systematized.
- Systemize Your First Stream Through Leverage : Since we all have limited time, it is important to apply leverage in order to accomplish more out of life. You need to reduce the amount of time it takes you to generate your first income by leveraging people and technology.
- Leverage Your Resources To Create Additional Streams of Income : The final step is to use the reserves from the first income to invest in other businesses, dividend paying stocks / bonds or income generating real estate.
Having just one source of income is no longer suitable in today’s economy. You have to generate multiple streams of income.
At your service,
2016 HAR.com Top 20 under 40 in Real Estate
Top Producing Realtor
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