Being an entrepreneur means taking risks, calculated risks, in order to achieve great rewards. One of the best ways to hedge your odds is by having multiple streams of income.
There are several types of income that are desirable:
* Passive income – this is income that you don’t have to actively work for. That’s a great type of income to strive to have. Here are some examples:
-> rental properties.
-> vendor machines.
-> affiliate marketing web properties.
Passive income is the type of income that frees you from having to physically work, and gives you the time to pursue other opportunities and take advantage of them.
It also gives the possibility to have fun and relax. It still requires some maintenance, but it is usually not as demanding as a business or job. Financial freedom is achieved when you have developed a source, preferable more, of passive income.
However, there is a catch, and that is the effort is front-loaded, meaning most of the hard work is in the beginning. But once set up the business or venture, and work hard on it till it starts making you money, then you can enjoy the rewards and work on another venture to secure and increase your income.
* Residual income – is when you get paid over and over from an effort that you did once. An example may be a book or digital product that you created once then sold over and over.
* Multiple streams of income – this is the best position to be in. This is the way the rich operate. Once you get your first stream of passive income in place, your aim is now to diversify and add other streams.
This will not only increase your income, but will also give you security from knowing you’re not dependant on one source, if anything should happen with it.
Keep looking for opportunities after you develop your first source of oncome. And when you have several income streams, then you can relax and look over your ventures to make sure everything is going smoothly.
This is the best way to achieve financial freedom and building wealth.