Want to be a millionaire? Of course you do. Well this finance expert says there’s one plan of action to get you raking it in…
According to Amanda Abel, personal finance and business expert, this one strategy can make you rich – and it’s probably more obvious than we thought.
Simply, have multiple streams of income. Who’d have thought?
Amanda told Insider:
It was during this time that I realised I had to always make sure I had money coming from different places, so I freelanced on the side of my day job and worked on a blog in the hopes of making some money from it someday.
While I didn’t know it at the time, I’d figured out something most millionaires already know: you always need to have multiple sources of income.
As it turns out, having your money coming from multiple sources isn’t just a survival technique, it’s also a way to build wealth.
So how many streams of income do millionaires have?
Tom Corley, the author of the book, ‘Rich Habits’, studied the success habits of millionaires over five years.
This is what he found:
- 65% of self-made millionaires had three streams of income.
- 45% of self-made millionaires had four streams of income.
- 29% of self-made millionaires had five or more streams of income.
Having multiple streams of income is the same idea as diversifying your investment portfolio. When one income stream suffers, the others make up for it.
If none of them are suffering? Well, then you’re making a ton of money.
Stuck? Don’t worry about it, here are some ways you can start creating multiple streams of income in your life.
If you still have a regular job, start a business:
Most millionaires own a company. According to a study by the Economist, around half of the world’s millionaires own their own businesses, according to Amanda.
Whenever I mention multiple streams of income at a speaking engagement, the audience sometimes gets confused. ‘Do you mean, like, have two totally different companies?’ they ask
You could do that at some point. Just be prepared to have two full-time jobs as a result. In my opinion, it’s a lot easier to find multiple sources of income within the same business.
Amanda, a blogger and writer by trade, is paid to create content but says she can also sell digital courses where she teaches other people how to become well-paid writers. Or, self-publish and sell books on the topic on Amazon.
This, according to Amanda, refers to money that you earn without having to trade time for it. It’s what she calls the ‘ultimate form of financial freedom’.
I’ve been making passive income for years in the form of book sales from Amazon. However, in 2016 I decided to start kicking it up a notch by starting to offer my own digital courses and make more money in affiliate sales from my own blog.
They haven’t covered all of my expenses yet, but we did increase this form of passive income significantly in the past year. I went from making a few dollars a month to now making a few hundred dollars a month in passive income from my blog, much of which is being invested. Next step: Grow it to a few thousand.
And finally – while Amanda is not a millionaire yet, she says she will be someday:
I know a lot of it will be thanks to the multiple streams of income I’ve created over time. What initially started as a survival technique has turned into a wealth creation strategy for decades to come.