Tuesday, February 10, 2009

Creating Multiple Sources Of Income

I recently recieved a copy of Success Magazine and an article inside got my attention right away; Securing Your Financial Future......Creating multiple sources of income is the key to surviving and thriving.

Here are some guidelines of risk involved from high to low in my opinion:
  • Highest risk - Do Nothing.
  • High risk - Work to generate income from a source someone else owns and controls.
    Some of this can be beneficial financially but it has little or no long term security. Remember someone else owns the basket and can crush your fragile little financial eggs at any time.
  • Moderate risk - Work to generate income from a source you do not own but have control of your efforts to produce income.
    This needs to be crystal clear on income per results or it will be high risk.

Some questions to ask:

  1. When I get X amount of results, How much income will I receive? ( a stated range is acceptable)

  2. Is there a written legal compensation plan clearly stating this from the owner?

  3. Is the compensation plan directly tied to my results?, or can it be manipulated based on the owners discretion? In other words, do I really have consistent control of the income? (High risk if not)
  4. Is there a proven track record of the compensation plan? Has it been factual and consistent?
  • Less risk - Work to generate income from sources you own and control.
    In this case you are in full control of profit and loss. It`s your basket and your eggs. Note: This could move to high risk if you do not protect your basket!
    More of this can create long term financial security. This is where the entrepreneur thrives and survives. The more baskets of eggs that you own and control will equate to more financial security.

  • No risk - This does not exist!
    Not recommended. Income will not fall from the sky into your bank account while you do nothing.

For the longest time I was trained/mentored to put all my eggs in one basket and protect that basket. Now this may work if you own the basket! but if you don`t, a financial train wreck may be in your future. Now you may be thinking, why would you take such advice? and I will tell you it begins with trust and, it ends with trust or the lack of.

I, like many others believed there was security in the one basket focus because it gave us hope along with some money but did`nt deliver when it came to security. We have all seen this over and over in the media/news with companies/CEO`s/Owners who control the financial baskets who when the financial pressure hits, they do just about anything to keep more of their basket while leaving others with false hope heading for a financial train wreck. High Risk

Keep in mind that even if you own the basket and it is the only basket you have, the train wreck can still occur. The point here is create multiple sources of income, some you own and others may be owned by someone else.

I personally have made a conscious decision not only survive but thrive in creating multiple sources of income as the article suggests. One Goose, One Golden Egg. I don`t think so!..... Many Geese, Many Golden Eggs! :)

The very last thing I will do or suggest anyone do is take on a victim role or a poor me attitude. Instead I believe that the plans for the future need be addressed now with new advice and information that is readily available if we choose to pursue it. This is exactly why this article grabbed me!

This post is not intended to be financial advice. Creating multiple sources of income just makes sense, as does getting multiple sources of information. As for my thoughts on the one basket train wreck, you can take it or leave it but remember to use the old IBM slogan..... THINK.



Chris Spieth said...

Awesome points John, I got the same thing from those articles. I wish I'd gotten that magazine years ago(wasn't in my sign up basket) I now have subscribed to it so I don't miss any other important information! Definitely keep your eyes open in this information era. Read everything that is good and ask questions!

JohnCharlesMorgan said...

Hey Chris, Thanks for stopping by!
There is so much information available and it`s hard to keep up with it all but I will continue to search and post it as it comes.The key I believe is to not limit the sources and THINK as you learn.

Brian Rodman said...

Awesome article. I definately agree with you on looking for other sources of income and not being held to one source. From our perspective, the trucking industry has gone from good to bad, with today's ecomony. I don't understand why people wouldn't take advantage of other sources of income. Thanks


JohnCharlesMorgan said...

In today`s economy, opportunity does exist and we can help ourselves and others by exploring "Outside The Box" and pursuing all options. In the Success Mag. article they noted that many new business ideas came during tough times!