Question – when going into battle, would you rather have one soldier on your side or a thousand? Income streams are your soldiers in the battle against the cost of living and running business. Wouldn’t it be better to have several, so that if one soldier goes down, the others will keep your agenda moving forward?
Look, we all buy auto insurance, health insurance, life insurance, disability insurance, etc. We buy those in order to transfer the risk of a large payment away from ourselves and onto a third party – the insurer. Whether we like it or not, the possibility of a loss of income is a substantial risk in all of our financial lives, specifically in today’s economic environment and it makes good sense to be ensured for it. While most people chose to spend money on a loss of income insurance policy, which may be the right thing to do for them, I prefer the multiple income strategy. I believe that ten sources of income, each bringing in $500 and totaling $5,000 per month, is better than one source of income bringing in the entire $5,000 for two reasons: income stability and income growth potential.