How To Lead Your Life To Earn Multiple Source of Income

When it comes to earning a living, most people resort to trading time for money and work hard for money. They end up spending long hours in a day trading off their time to earn money. The truth is the moment they stop working, they stop earning. The common mode of trading time for money are employment and self-employed. When we were growing up, we were often told by our parents the importance of finding a good job after our study and work hard to earn a good living. Employment gives people a false sense of financial security. After all, predictability equates less risk and you can certainly count on it. However, most people do not realize that financial security and job security are two separately elements that are equally important. Having financial security does not mean one has job security. Conversely, without job security implies little financial security. A higher salaried position often comes with greater responsibility, work tension, and performance expectations. One may lose his job if he simply does not perform up to expectations. Let's not forget in today's competitive landscape, corporate profitability ranked above everything else, often at the expense of staff retention and employee satisfaction. An employee in the late 40s or close to retirement age will typically feel lesser of a job security as companies prefer fresher and younger talents (at a far lower pay!). With the spate of mergers and acquisitions these days, many employees end up being redundant, and there is nothing they could do about it. These are mere facts of life that we have to accept and get on with it.

It's not to say employment income is not good or cannot lead to greater wealth. It's a case of single source of income is simply not good enough by today's standard. The risk of losing this single source of income is highly possible given the reasons above. It is therefore imperative that one should look at securing multiple source of income. Multiple source of income is also an excellent platform to earning passive income, serving the ultimate goal of achieving financial freedom.

In creating multiple source of income, one should look at money making opportunities that can be self generated and dependent on a reliable SYSTEM. Besides reliability, the system must be automated as much as possible. It is also important that this system must be able to leverage on 3rd party or external resources in generating added capacities. However, initial effort and hard-work may need to be sacrificed in order to build a long-lasting income-generating machine, but the effort is truly well worth it.

Following are some common examples:

- Network Marketing
- Franchising
- Recurring income such as monthly or yearly renewable memberships, subscriptions, property rental income, dividends from stocks, Bond yield and other interest bearing instruments
- Patent or Product Royalty
- Collections from vending machines, etc.
- Internet business

Another important element when evaluating an income-generating opportunity is to understand the financial return, i.e., Rate of Return or Return on Investment (ROI). It's much better to focus your energy and effort into a high ROI opportunity. At the very least, the net ROI should at least double the inflation and the average time deposits in a bank. There again, one's ROI target should also be aligned to the set financial goals, so that collectively the multiple source of income is able to achieve the goals.