How to Succeed at Multiple Streams of Income
In 2006 I had an epiphany. I realised that earning £1000 a month from a job was the same as five income streams all earning £200 each.
I discovered the theory behind the multiple streams of income model.
That moment changed my life, never again would I need to be employed. I could see a way to employ myself.
That’s what I did, and still do.
There are a few things I’ve learned along the way that have helped this become a sustainable model for me.
1. Pick the right income streams
Don’t just jump onboard with every income stream you see. Ask yourself: does this income play to my strengths? Will I enjoy building this income stream? How long will it take for this income stream to make money? How many hours a week will this income stream require?
My own criteria is;
If an income stream meets all the criteria then I will add it to my potential income streams list.
2. One at a time
Make a success of the first income stream before moving on. My own goal is to get the income stream up to £100-£200 per month before even considering a second, third, fourth etc..
3. Giving up
Lots of people give up on an income stream before it becomes successful. Perhaps this is because they underestimate the energy and/or commitment required to get the income stream up and running. Others fail to do the proper analysis (above) and so start income streams that they have very little chance of making a success of.
I will give up on an income stream if I have gained new information that has affected the criteria analysis. I’ll also call time on income streams if they haven’t met the desired income level within a year (with maximum effort on my part).
4. Do the money work first
It’s easy to become distracted by the potential of new income streams. Look after your ‘earning’ streams before working on prospective ones. This is the key to sustaining the multiple income streams model over the longterm.
I know which are my largest income streams and I work backwards through the day and week. Largest income streams are attended to first, prospective income streams get my attention once all the money work is done.
My final tip is to make your first income a relatively easy one. Success breeds success.
Self checks work wonders – if you’re honest with yourself. Self-income only works as hard as you do. I know too many of the “I wish/I want” kind who try anything that comes across their desk just because it has “self-employed” written on it. Very few actually consider if it’s compatible.
Good point Nina, too many people think it’s going to be a lot easier than it actually is.
It looks so simple when you put it like this Erica,
I had forgotten how to break it down into these manageable steps – So looks like this week I will be having a good hard think about what I would like my income / business streams to be .
Good luck!