Work from home with your own business

Saturday, December 10, 2005

Multiple Income Streams - Do We Need That?

Multiple Income Streams - Do We Need That? By Cheriyan Thankachen

Lets look at an earning pattern of two individuals A and B. A earns his 100% income from Source1, his only source. B earns in a slightly different pattern. He earns just 1% income from Source1, 1% income from Source2, 1% income from Source3 and so on. In short, B earns his 100% income from 100 different sources.

The possibility of something happening to Source1 or any one source is very high. If this proves true, individual A loses his 100% income. So, from 100 he goes straight to 0. Very scary!. Lets look at B in this case. He loses one source, there’s almost no impact on his income because he has just lost 1%. We may consider a situation where he might lose income from 50 Sources. Nothing to be very concerned because he still has 50% income running in. That’s the beauty and security of having multiple income streams.

Security – Salaried people talk about Job Security. There is no such term as Job Security. You loose a job I bet you will find another one. If not in the same city then another city. If not the same profession another profession. But, you will do whatever you can physically and will find another job. You are and will be able to generate income as long as you are physically doing it. You are directly and totally responsible for your income. That’s called NO SECURITY. Why? Eg. Famous Surgeon. Earning thousands per month. Involved in a small mishap. Fingers fractured. Out of action for say 5 months. Income status. From thousands to zero. No security.

You should be involved in business where your physical involvement is not required to generate income or money. That’s where Network Marketing comes into the picture. Here your income is the result of small efforts put by each and every individual in your network. You are not directly responsible for your income. That’s where you can have Financial Security.

I work for a software company and talk to my colleagues of having multiple incomes. My recent focus is Internet Marketing which is a field on unbelievable rapid growth. I started a blog last month titled Educated Minds which can be found here.


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