I’ve often heard that great opportunities are not rare. It’s just that our ability to identify them is so undeveloped that we perceive them to be rare. Ever since I’ve started reading about how people find different ways to build multiple streams of income and then take full advantage of them, I find myself becoming more aware of them as I recognize them in even the tiniest things throughout my everyday life. I might see them in a billboard on the way work, in a tool or gadget I have to use, or even in this case while I’m on vacation.
Observations While On Vacation in TN:
As a few of you may know I was on vacation earlier this month in the beautiful state of Tennessee near the Smoky Mountains. One of the places we visited while we were there was an amusement park named Dollywood. As you may have guessed, it’s owned by the famous country singer Dolly Parton. If you’ve never been there, it’s a charming place to visit. Aside from all the usual amusement park rides, the whole place has a very down-home southern country theme to it. It seemed to be a lot more friendly and cleaner than other comparable-size amusement parks I had visited.
When I tell people I went there, the first thing they jokingly ask me is if I got to meet to Dolly Parton while I was there. And to their surprise, the answer is partially yes. Though I did not meet her, she did make an appearance at the park while I was there and so I shot the picture above.
If you’ve ever wondered, Dolly Parton’s net worth is currently believed to be at about $450 million. Considering she took control of the park in 1986, one could reasonably assume that her net worth was probably only about a quarter of that 27 years ago. So let’s say somewhere around $112M.
If you were a celebrity and had $112M, what would you do with it? Buy mansions and fancy cars? Blow it all like Lindsey Lohan and nearly put yourself in bankruptcy? Or would you take those earnings and grow it into something more? Would you position yourself with multiple streams of income that were diversified and disconnected from your current line of work? Perhaps something like owning an amusement park?
The Importance of Multiple Streams of Income:
While I don’t necessarily believe you need to always spend a significant amount of money to make money, I do think that some amount of capital (and therefore risk) is always prevalent in your effort to start any kind of a money making operation. Even my own efforts to start this blog My Money Design began with a $58 investment to iPage. That investment has paid off handsomely multiple times over.
So while not all investments so small (or even large ones) can payoff in that same way, the question becomes:
What are you prepared to invest in to create your own multiple streams of income?
Another Celebrity Example of Income Diversification:
Another good example I noticed while on vacation came from watching TV at night in the hotel room. The TV show was interviewing Ashton Kutcher for the new Steve Jobs movie when he started talking candidly about his recent investments in technology companies through his venture capital partnership. You would never guess it, but he has invested in a lot of the cool apps you probably already have on your smart-phone.
Again: What are you doing with your money?
Income Opportunities Are All Around Us:
Although most of us will probably never be famous enough or have enough capital to even dream of owning an amusement park or investing in tech companies, the lesson is still there and a good one to be learned. Everyday there are money making opportunities for us to seize that would help us build multiple streams of income.
All we need to do is open our eyes and evaluate them.
If for nothing else, we should be doing this simply for the act of diversification. At any time, any one of us could lose our jobs or be fired for absolutely no reason. What would then become of our income? Would it cease? Would you simply be unable to pay your bills until you found employment again?
The truly wealthy don’t worry about this problem because they know better. They find ways to make money from things other than employers. Usually their investments, dividends, and revenue from other businesses or partnerships keep them from having to worry about any single source of income cutting them off. Their ability to diversify their revenue streams protects them and forms a financial fortress if you will.
So don’t let yourself succumb to one single source of income. Take a lesson from those around us and diversify. Start by putting your money into things that have a strong potential to grow and bring you returns for years to come. If you’re feeling a little more adventurous or entrepreneurial, you could always start a small-scale business using a website such as this one or other online jobs.
But whatever you do, don’t wait. Don’t hesitate. Don’t wait for the perfect opportunity because it will never be there. Building streams of income takes time, risk, and a passion to stick to it. But once they happen, they can be a beautiful thing and very infectious.
Readers – What are you doing to build your multiple income streams?
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- There Are No Shortcuts to Early Retirement Planning
Images courtesy of MMD, FreeDigitalPhotos.net
Alexa says
I agree that building different streams of income can be very infectious. As of right now I have my day job, blog income (which is still relatively small), and freelance writing income. After I save for my emergency fund I will start investing money into the stock market and hopefully real estate. Building multiple streams of income has always intrigued me.
MMD says
As long as you keep it up you will have that extra money soon. And that extra money will generate into even more for you. Just stick to what you know and don’t try anything too complicated.
Glen @ Monster Piggy Bank says
I agree that you don’t need a lot of capital to get the ball rolling, but one thing I am noticing when it comes to building my niche websites is that having a little bit of money to get everything started makes a huge difference.
MMD says
When it comes to working on websites, I’ve been very surprised at what a budget of less than $100 will buy you in terms of link building and content creation. A little bit of capital does help to accelerate progress.
Thomas | Your Daily Finance says
All about the multiple income streams! I think people make things a lot harder than they have to be. Maybe they just dont want to do the things needed to make money but there are tons of ways to make money and a lot dont require much capital. I am personally looking to get into real estate and maybe even some niche sites. Beside stock market and other businesses not sure what I want to do just yet. Don’t want to focus on too many things as once.
MMD says
Do you think you need more than that to have multiple streams? I’d be willing to bet the stock market, real estate, and niche site businesses would be diversified enough to keep you well afloat.
John S @ Frugal Rules says
Good post MMD! We’re all about creating multiple income streams. We do that with our business and with the blogging. If you’re willing to spend a little bit of money that can really help get you off the ground as well and possibly increase your chance at success.
MMD says
It’s been a long time coming for me this whole lesson of spending a little money to make even more. I started off cheap with building my blog because I wanted to keep my risk low. Now that I have a lot more confidence in what I’m doing I’m willing to spend a little more to speed things up.
Budget and the Beach says
I just wrote something similar last week about how multiple streams of income has really helped my confidence and helps me worry a bit less about money because I feel like if one income stream is a little low, then I have a couple back up plans. I’m working continuously to try and have more and more MSoI and be a true entrepreneur.
MMD says
Glad to hear you have some good sources of income rolling in now. It is euphoric when it starts happening because the money validates that all your efforts are finally paying off.
Pretired Nick says
Good call! Having multiple streams of income makes a big difference to your freedom down the road. I wish I’d done a bit more when I was younger.
MMD says
I wish I had known about this and tried harder 10 years ago. Even though some people may make more money quicker than others, I think the important thing is actually trying.
debtfreeoneday says
I’ve invested money in the past but fruitlessly I think, when I’ve tried out different revenue streams without much success. I totally believe in having different revenue streams though and not putting all your eggs in one basket can certainly pay off.
It’s something I’m plugging away at!
MMD says
Sorry to hear your investments haven’t paid off in the past. What did you go after? I had some big missteps when I first started too. The big thing I found was to keep it as simple as possible. If an investment sounds too complicated, it probably is.
Kim@Eyesonthedollar says
Speak for yourself about not having money for an amusement park. Eyeball World is a few short years away from fruition. Can’t you see it now… a roller coaster called the retinal detachment, spinning eyeballs instead of the teacups, the possibilities are endless.
Seriously, I may not ever be an internet sensation or Eyeball Disney, but there are lots of good opportunities out there if you pay attention. Right now, real estate is hopefully our ticket, but I’m open to other possibilities as well. I have an idea in the works to use my skills as an optometrist to specialize in a niche that isn’t currently being met in our community. That is my goal for the next year career wise.
Behind the appearance and southern drawl, Dolly is a true entrepreneur. She’s like the hillbilly Oprah. I have always been a fan. She proves that just because you have a Southern accent, you are not stupid.
MMD says
Holy cow! Eyeball World sounds incredible! Maybe you can get a gang of optometrists to pool together their financial resources and make it happen.
I’ve got to admit that after going there I have a lot more respect for Dolly. I didn’t really know a lot about her before this. It would be wild to think 40 years from now about going to a Taylor Swift world.
charles@gettingarichlife says
My income streams are the wife working, my rental properties, 401Ks, and my human capital. Knowledge is the key to building multiple income streams.
MMD says
Knowledge is a good first step. But I think that execution is equally important. Knowing what to try, why to try it, and then actually doing it all go hand in hand.
Rita P says
If you want to make money with multiple income streams, you have lot of opportunities to tap. The approach to build multiple streams should be :today is the perfect day” to start and you should start taking actions to realize them. Diversifying your income means you have more financial stability and you can lead a stress free life not succumbing to that single income source
MMD says
I agree that each day has just as good of potential as the next to begin! I remember when I started my blog I thought why didn’t I start this a year ago? I also thought the same thing when I bought my first stock or mutual fund. There’s always a million reasons to not do something, but you’ll never know if its going to work or not until you give it a go.
Matt Becker says
Great stuff MMD. This isn’t something I had honestly given a lot of thought to until recently, but it’s definitely on my mind a lot more these days. I think that pursuing these kinds of experiences is worthwhile even if they fail, simply because you’ll learn and be exposed to other opportunities that might work out. The more you try, the more chance you give yourself for success and the more secure you can make your life.
MMD says
For me its almost like a game. Can I make more money on the side than I do at my job? Ultimately I win because any extra money I make I get to keep. 🙂
Plus building other income steams really is a good exercise in truly being entrepreneurial, even if its on a small scale.
Mo' Money Mo' Houses says
I don’t think I ever want to just have one stream of income again. It’s so nice to have something to fall back on. Freelance writing has been great because I get to do what I love and it’s nice to get some extra cash.
MMD says
Good for you having some success with writing. The best kind of side income is when what you’re doing doesn’t feel like work at all.
Done by Forty says
I’m intrigued by the idea of income diversification but my only actions, thus far, are to invest in index funds and renting out a room in our house. Thanks for the reminder of the importance of diversifying our income.
MMD says
There is nothing wrong with those two things. Index fund investing has been proven to be far more reliable than a lot of other forms of investing. And why not make some extra cash off a room that wasn’t being used?
Joshua @ CNAFinance.com says
I agree that multiple income streams are definitely important. Personally, I’ve got two. The brunt of my income comes from my day job and, I earn a very little bit on my blog. Once I get my blog performing, I’m thinking about breaking into the freelance writing market. After that, we’ll see where the wind blows me. Thanks for the great post!
MMD says
A lot of people seem to really have found a good niche in freelance writing. After reading all the income reports around the PF blog sphere, I’d say its definitely worth a shot!
Laurie @thefrugalfarmer says
Love this, MMD! We are fervently studying this whole “multiple streams of income” thing right now, and eager for my husband to be able to quit his job sooner rather than later. Thanks for the motivation!
MMD says
Awesome! Studying and deciding what you want to go after is a great first step. That’s what I did for almost a year before I ended up taking up blogging and trying to make money at it. You’ll have to let me know which of the ideas you finally end up going after and trying.
Integrator says
I look upon each of the dividend paying businesses that I have as unique diversified streams of income. Unfortunately, it takes far more effort and time to stand up each of these dividend streams. I think financial writing potentially stands to have a much greater return on equity. Low initial start up costs, potentially greater returns. The biggest question is how you value your time to generate a return. I think you need to be prepared to invest considerable time to see a return, but you will eventually see rewards if you are patient enough
MMD says
That’s a good way to look at your dividend stocks. Even though most people group them into one category, they really are quite a diversified lot – each one paying you back simply for being the owner. The only trouble is finding enough capital to make those returns substantial.
I admire your curiosity with writing. There seem to be many people within the financially writing niche who can turn a handsome profit for the content they put out. But it seems to come about after they have worked from the bottom and have a resume of impressive assignments they have performed for CNN, Huffington Post, etc. For me I’d rather put the time and energy into developing another website that I could use for advertising or to sell as an asset. But that’s my opinion.
GamingYourFinances says
We only have two income streams at the moment, working and dividends, but we’re actively looking for additional opportunities. The goal is to have 4-5 income streams producing a total of $2k/month in just 4yrs. An income property is on that list but we’re looking for other options too. The more diversification the better!
MMD says
Working, investing/dividends, and blog income is what we’ve got going for us right now. I’m like you and would love to add more of them. For now I’m really just focused on one of them, and that is to build a portfolio of niche websites. So far so good! I’ve strongly considered buying a rental proprty and being a landlord, but ultimately decided against it each time. You might enjoy my analysis here:
https://www.mymoneydesign.com/personal-finance-2/mortgage-refinance/how-much-money-would-i-make-if-i-rented-out-a-house/
Bruce Willis says
This is a great blog you have posted here. i can use some of your tips to make myself easier in the future investment opportunities.looking forward for more.
Michael | The Student Loan Sherpa says
This is great advice. Because a great pension seems to be a thing of the past, multiple income streams are essential.
MMD says
Not to mention that we could also lose our jobs at any minute too. If your income was diversified, then moving jobs or even losing one would not be as big of a deal.