How multiple streams of income can work for you during times of uncertainty, pt. 1
To still have an income during this crisis is a good thing. Do you agree? If I could show you how you could earn more income that could support you and your family during this and other inevitable crises, would you be interested?
Let’s face it, there will always be those with and those without. What I am excited about is that the degree of action you take after reading this, will determine to what degree you are a part of those with or those without.
Did you know that statistics suggest the average millionaire has an average of seven streams of income? In this article, I discuss the multiple streams of income that have allowed thousands of my students and successful partners to grow and as a result, contribute to other aspiring entrepreneurs and current business owners in over 27 countries around the world.
“Don’t downgrade your dream to match your reality. Upgrade your faith to match your destiny.” – Bishop T.D. Jakes
Think of your net worth as an airplane that you and I are trying to get into the sky and soar effortlessly. Are you ready to fly with me? If so, put your seats and trays in the upright position, buckle your seatbelts and prepare for take off. Oh, and don’t forget to turn off that device or place it on airplane mode. In the event of an emergency, you should cut this page out and place it somewhere for easy reference and revisit any areas you may have missed on this first flight together.
We are all subject to the same gravitational forces. The larger you are, the more force exerts on your body. If you weighed nothing, you and I would easily fly away. What does this have to do with our topic? Everything!
Net worth is the value of the assets a person or corporation owns, minus the liabilities they owe. All are subject to the same financial pull. Where we choose to live, the products we buy, etc., they will determine how large and heavy your plane will be to hold all that stuff. The greater the need (monthly expenses), the more thrust (income) you will need to take off.
Your net worth airplane takes off when your thrust (income) exceeds your gravity (expenses).
“Advice is one thing that is freely given away, but watch that you only take what is worth having.” – George S. Clason
Soldier, businessman and writer George S. Clason, author of the 1926 success classic, The Richest Man in Babylon, popularized the basic principles of wealth demonstrated by the Babylonians. The Babylonians discovered and perfected the implementation of many of the basic principles behind wealth, such as saving a small portion of your income each month, investing it wisely, learning how to lend money instead of borrowing it and how to protect your wealth.
Here are three lessons you can apply right now to start building wealth:
1. Live below your means;
2. Create your own luck by working smart and above average (read “Creating a Platinum Lifestyle: Set Your Mind on Fire” to learn more);
3. Decide to commit to lifelong learning in your field and place emphasis on improving your level of financial literacy.
“If you want to go somewhere, it is best to find someone who has already been there.” – Robert Kiyosaki
So, are you ready to fly and create multiple streams of income? If so, keep on reading and let’s go! Start with ‘why’!
Write your reason down on a paper and look at it often. A person with enough reason(s) will find a way to make what needs to happen, happen. (I also recommend reading the book “Start With Why”, by Simon Sinek).
It is compulsory that we do a quick bit of in-flight housekeeping and address the elephant in the room. Do you know what the eight most common income streams are?
In our “Cost of Success” seminars, we have discovered that over 78 percent of our audiences are not certain or aware of these eight streams. Would you agree that it is improbable to reach a destination without having a destination in mind?
So, here goes:
There are generally eight income streams:
1. Earned income;
2. Profit income;
3. Interest income;
4. Residual income;
5. Dividend income;
6. Rental income;
7. Capital gains;
8. Royalty income.
“If you don’t find a way to make money while you sleep, you will work until you die.” – Warren Buffett
Income earned by trading your time for money. Many of our clients take advantage of our business services, for example, business planning, pitch development, public speaking training, copywriting, book publishing, ghost writing, mentoring and one-to-one coaching. When prospective clients and our team are a good fit, we decide on a start and completion date and set the expectations for the workflow. Examples of earned income may include wages, salaries, tips and other taxable employee compensation. Earned income also includes net earnings from self-employment.
Income from buying and selling. All Eliot Kelly signature clothing and other retail partnerships fall under this stream. One of my first successful product launches was featured by the British Broadcasting Company’s (BBC) “Three’s Be Your Own Boss” reality series. My team and I were shortlisted from a talent pool of 500 other entrepreneurs from different countries. Footage from the product launch led to an opportunity to pitch my business to Richard Reed, the co-founder of Innocent Smoothies and a respected venture capitalist.
The large pool of competition, along with the prestige and success of the investor, resulted in the series being picked up by Cable News Network (CNN) and featured in several popular business publications. Other successful product launches my team and I have been a part of include women’s shoes and the Platinum Series of Swarovski encrusted T-Shirts, featuring success-driven quotes that kept me motivated during a very depressing phase in which my mom battled cancer. The most rewarding aspect of this stream was and still is our partnership with our nominated Cancer Research Group and participating through volunteering time and charity work for cancer patients in my local community and the homeless.
“As long as you are alive, you will either live to accomplish your own goals and dreams or be used as a resource to accomplish someone else’s.” – Grant Cardone
Interest income is income from lending money. Many of the investors who read our content may be familiar with this form of income. Interest income is realized as a variation or hybrid of other streams of income. This pattern of variation is consistent throughout the eight streams to larger or lesser degrees. Interest income can be the amount earned by an investor’s money that she placed in an investment or project or the amount paid to an entity for lending its money or letting another entity use its funds.
As a private investor, many of our investment team’s projects add value to the new or existing interests of our clients. A very simple example of interest income that happens every day is when an individual deposits money into a savings account and decides to leave it untouched for several months or years. The money will not just sit idly in her account, because the bank will use it to lend money to borrowers. The bank will earn interest by lending money out, but will also pay interest to holders of deposit accounts.
Simple interest can be computed in three easy steps:
1. Take the annual interest rate and convert the percentage figure to a decimal figure by simply dividing it by 100. For example, an interest rate of 2 percent divided by 100 is 0.02.
2. Use the decimal figure and multiply it by the number of years that the money is borrowed. For example, we can multiply 0.02 by three years and get 0.06.
3. Multiply that figure by the amount in the account to complete the calculation. Let us say the principal amount borrowed is $10,000. Multiplying the figure by 0.06 will give us $600, thus $600 is the interest earned for the money lent for a period of three years.
While putting some money in the bank is a good way to start earning interest, I recommend complementing this stream with all, or at minimum, seven of the streams described. As a part of our in-flight menu, independently study the many benefits of what has been referred to by Albert Einstein as the eighth wonder of the world – compound interest. While we are on the topic of wonders of the world, if you have never, visit the Glass Window Bridge, located on my favorite island, Eleuthera, which, when translated, means ‘Freedom’.
• Eliot Kelly is recognized as a serial entrepreneur and has been featured on CNN, BBC’s “Three’s Be Your Own Boss” and an extensive lists of magazines and articles. His four books have been translated in over seven languages and are sold in 29 countries, recently being shortlisted for Best Self-Help and Best Advice Books 2019 by The Author Academy. He is regarded as a top sales, business and leadership management coach who creates opportunities for his success partner’s through financial literacy and life skills training. He is also a professional speaker and continues to inspire present and future entrepreneurs around the world. Email: email@example.com, LinkedIn: Eliot Kelly, Facebook: facebook.com/eplatinumkelly, Eliot Kelly TV: https://www.facebook.com/eliotkellytv/, Instagram: @eliotkellyofficial.