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Why You Need Multiple Streams of Income and Where to Get Them

Why You Need Multiple Streams of Income and Where to Get Them
 

Robert G. Allen is one of America’s most famous financial advisors of all time. After graduating with an MBA from Brigham Young University in 1974, Allen began making small real estate investments, transforming his tiny nest egg into a million dollar net worth in a few short years. He shared his powerful system with the public in the New York Times best-seller Nothing Down.

The Problem with Schools

According to Robert, most school systems only teach reading and writing. They don’t teach a person how to become successful. They teach people how to get a job and work for somebody else. Robert says it’s ok to have a job and work for somebody else. But what he teaches goes beyond that.

Why You Need Multiple Streams of Income

The most important thing that you need is multiple streams of income. A job is only temporary. You can never know what might happen to your job. In the 1950s, 60s and 70s, jobs were more stable and you could have a job that would last 10 or 20 years, maybe even 50 years. But today, that’s not the way it is because of the global economy. You are competing for jobs with the entire world.

For example, there are people in China who are competing with people in Australia. People in Australia are competing with people in Kuala Lumpur. People in Kuala Lumpur are competing with people in Chile, in Argentina, in Brazil, in Europe, France. Because of the global marketplace, businesses can start quickly but also go out of business quickly.

The 4 Money Mountains

Robert explains that there are four major ways to get multiple streams of income. He calls them “Money Mountains” that you need to climb in addition to your job, and in addition to working for somebody else.

The first money mountain is what Robert calls “Residential Real Estate”, which is investing in properties that somebody has to rent and live in. You make additional income through the rental and hopefully the property value will also increase over a period of time.

The second money mountain is the Stock Market where you invest your money and in a little time you’ll get an interest. These are called passive investments. Robert says that although it is an extra way for you to invest, it is also a very risky method. So you should not put a lot of money there.

The third money mountain is the Internet, which according to Robert, is the way of the future. We are now talking and living on the Internet where there are hundreds of millions of people. The investment is low and there are thousands of people on the Internet right now who would want to buy your products.

Finally, the fourth money mountain is the Marketing Mountain which is very similar to the Internet Mountain. The Marketing Mountain is about the creative marketing of a product, service, idea or information to other people who would like to buy it. You take information that you already have sell it.

Food for Thought:

- Which of the four money mountains have you created for yourself?

- What is your next step toward a more financially secure future?

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