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Create Many Income Streams For Yourself

by Rajen Devadason

But thou shalt remember the Lord thy God: for it is He that giveth thee power to get wealth.

Moses (Deuteronomy 8:18)

Or perhaps had lived as shepherds or miners in some distant land ruled by a dynasty of despots? There might have been intermittent periods in our lives when we experienced some slight measure of material 'abundance', perhaps during times of good harvests, healthy flocks or high ore yields. Yet it is vital to remember that during those ancient times, we would always have needed to hope and pray that the general prices of whatever goods we produced would stay high (denominated in the local currency, assuming money was already in use then, or at least in terms of relative barter value - lots of a fisherman's catch, say, for a little of our barley, wool or copper).

But how would we have fared if our production levels plummeted because of some plant or animal disease or a mine cave-in, or if a general glut decimated price levels?

And during the good times, how would we have stored our wealth safely and in a manner that generated growth before the advent of secure banks and regulated stock and bond markets?

You get the picture...

Today, in any nation where free enterprise reigns and where capital markets exist, there is an opportunity for regular people like you and me to earn a living in many, many, many ways! Nonetheless, most of us would still be better served honing our skills in one area of expertise rather than by dissipating our efforts in too many arenas.

So, are you a successful executive, sales person, doctor, lawyer, accountant, financial planner, pilot or dentist? Or are you a striving, struggling actor, artist, writer or poet?

The bottomline is it really doesn't matter what you do, as long as you do it well today and have a plan to continually improve your skills.

In our day and age, as long as we're capable of bringing in income, we are - at least in principle - able to create long-lasting wealth.

With numerous ways to turn a single active income source into lots of semi-active or wholly passive income sources, isn't it ironic that so few people ever bother to get to first base in this game?

Since you've penetrated so deep into this article already, chances are excellent that you are - or have the potential to be - among the elite minority of our 21st century. My assumption: You desire financial success in your life AND are willing to pay the price for it.

Consider then this simple but ever so powerful 3-part formula to long-term financial success:

1. Work hard to earn a decent wage;

2. Arrange your affairs so that you spend less than you earn;

3. Save and invest the difference... for a long, long time!

The manner in which you save and invest will determine whether you fail or succeed in moving from the, sadly, still conventional and thus 'normal' human condition of having just a single income source to the superior state of having many such streams.

Be warned, though: To succeed at this game, you must relinquish any residual negative attitudes about having lots of money. Many of us come from backgrounds that have imprinted our psyches with attitudes like...

It is interesting that the second of the three attitudes listed above is a very, very common misquotation (and misinterpretation) of a famous line from the Bible.

What the Good Book actually says (I suggest you not take my word for it but double check it for yourself in 1 Timothy 6:10a) is that '... the love of money is the root of all evil'.

I believe what that means is dangerous problems arise when we turn money into an idol, an end in itself, instead using it as a tool, as a means to achieve much greater, grander, more inspirational ends.

Because it will take awesome sacrifice, hard work and patience to get to the point where you have many sources of income instead of just one, it might be helpful for you to read how one of the richest men of his era felt about this subject.

America's 19th century steel king, Andrew Carnegie, once wrote an intriguingly entitled essay, The Gospel of Wealth, in which he stated:

"The fundamental idea of the gospel of wealth is that surplus wealth should be considered as a sacred trust to be administered by those into whose hands it falls, during their lives, for the good of the community."

If you reckon that making the world a better place is a good reason for you to improve your money management skills, here are 3 things you can do:

First, invest in yourself by reading and thinking about your area of primary expertise, then do the same on the subject of money.

Frankly, the more you know about your own area of employment or business, the more likely you are to be promoted by an employer or hired by richer clients. And the more you know about finance, the less likely you are to become helpless bait for (financial) sharks who prey on the naive and gullible. (If you'd like some suggestions in this second area, please help yourself to my FREE ebook 26 Books to Take YOU All the Way to the TOP! It's been written to help you embark upon your very own five-year mission of discovery through a self-study programme in personal finance, economics and investing.)

Doing so will allow you learn more about sound savings and investment options.

Second, begin to save some of your money in different fixed deposits (FDs) or certificates of deposit (CDs). Start small and opt for short tenures to begin with so that you get encouraged by the inflow of passive income into your main bank account intermittently throughout the year.

This will help you develop an appreciation for passive income.

Third, over the next few years, expand your sources of active income by considering starting side businesses (as long as these don't compromise your position with your primary employer), and multiply your sources of passive income by saving and investing your money in income generating instruments like bank accounts, money market funds, bond funds, equity funds, dividend yielding stocks, real estate investment trusts, and even rental property.

Putting each little 'brick' in place will take patience and a relatively rare willingness to give up consumption today to create a fresh, potentially perpetual income stream tomorrow.

If you are able to stick to your programme over the next decade or two you will wake up one morning to the wonderful realisation that your passive income sources are bringing in a deluge of money that exceeds your active income source, and which outstrips your personal and your family's cash requirements.

The day that happens will be the day you achieve true financial freedom.

Now only one thing remains for you to act on. Ask yourself if that distant goal is worth exerting yourself for. If you remain unsure, think back to what Carnegie alluded to:

The trickle or stream or gusher of cash you create through intelligent saving and investing may be used to not only improve your life and your loved ones' but also those of future generations.

So, ask yourself: Could leaving such a legacy be your highest calling or destiny?

In closing, if you are based in Malaysia, if what you've just read makes sense to you, if you are an English-speaking professional or business owner aged between 30 and 50, and if you genuinely believe you might benefit from my consulting services in the realm of financial planning and retirement planning, you're welcome to learn more about me here.

© Rajen Devadason