Multiple Streams of Income, Part 1

"The Trouble with the Rat Race is that Even if You Win, You're Still a Rat." ~Lily Tomlin

I absolutely love this quote from Lily Tomlin, because it couldn't be more true. How many people do you know that have spent their lives climbing the corporate ladder, only to find out it's leaning up against the wrong wall, one that really doesn't satisfy their inner desires and personal passions?

Who do we consider the "winners" of the rat race? Doctors, lawyers, and maybe a handful of other professions come to mind. But when you really take a close look at their lives, the 9 to 5....erhhh, more like 9 to 9 grind that they go through every day, is it really all that glamorous? They're really just a more successful version of a wage slave, with a little bit nicer car.

As creative small business people and savvy entrepreneurs, we need to commit to creating multiple streams of income in our lives. In today's tough economic times, it's very risky to have all of your proverbial "eggs" in one basket, relying on just one revenue stream. Creating multiple sources of income helps create a safety net, especially when they are diversified across different types of products or services.

One example of this would be to have an investment in small grocery store or farmers market, while at the same being heavily active in real estate or the stock market. While the latter may suffer in the midst of a recession, the former is considered a "staple" and is less likely to be affected by the rise and fall of financial markets. By implementing business strategies that produce multiple revenue streams, you can rely on one source of income if another one is diminished for a period of time due to unforeseen circumstances.

After you have developed numerous income streams, it's time to turn your focus towards making those streams as passive as possible. You should examine every aspect of your business and find out which tasks or activities can be delegated and/or outsourced. The more time you are able to free up in your day, the more time you have for creating additional revenue streams. The goals is to eventually have all of your income streams completely passive, so that your money comes in whether you're at work or on some island in the Caribbean. That's when you have officially graduated out of the rate race and are back in the game of truly enjoying life.

For a great way to visualize yourself getting out of the dreaded rate race, play the game Cash Flow 101 by Robert Kiyosaki. He also makes a great kid's version to start your children off early thinking the right way about money. I would also highly recommend Timothy Ferris' book entitled, "The 4-Hour Work Week". It's the entrepreneur's outsourcing handbook, and an absolute must read for small business owners.

**Make sure you come back for part 2 of this series, as I will be examining Warren Buffet's money rules, as well as the resurgence of the Entrepreneur. To your success!**