How many sources of income do you have right now, coming into your life and your business? You’ve probably heard that rich people have multiple sources of income, and you want to have the same. But what no one ever tells you are the three reasons why multiple sources of income for 99 percent of people is a bad idea.
Reason 1: It Takes Tremendous Effort To Build Up One Source
Building up one source of income takes a lot of time and effort. It also takes time to sustain it. Some people are trying many sources all at once because they hear about the benefits of having income from many sources.
People with high incomes get additional income from the following:
- Earned income: a job or salary
- Profit income: money that you earn from selling something for more than it costs you to make
- Interest income: money from lending your money to someone else, like the bank
- Dividend income: money from shares from a company you own
- Rental income: money from renting out an asset such as a house
- Capital gains: money from an increase in value of an asset that you own
- Royalty income: money from letting someone use your products, ideas, or processes
Many people look into the following ways to make multiple sources of income: drop shipping, the stock market, day trading, or real estate. They are doing so many things that they become a jack of all trades, and a master of none.
How much money, honestly, could they be making from each source? So instead of trying to make a little bit of money here and there, and not perfecting any of them, they should focus on one source and develop it well. How can they develop one source well? By working on skill development.
Reason 2: Skill Development
Imagine this, let’s say you want to learn martial arts and you want to master the art of fighting. One week you take a taekwondo class, next week you take a karate class, then a boxing class, followed by a Wing Chun class, and then a Brazilian Jiu-Jitsu class.
How good would you be after five years on all these skill sets and all these martial arts? Not very good. Why? You will know a little bit about each but you never took the time to master just one style.
You learn a little bit of each but don’t master any. It’s the same in business. When you try to diversify because you think you’re being smart, you never learn anything in depth
However, if you choose one thing to devote your time for the next year to three years, how good do you think you will be in the future? That’s the difference. So choose one skill to master and then after that, choose one source of income.
Reason 3: Pick One Source Of Income
It may seem counterintuitive to choose one source of income. You’ve heard that high-income people have real estate, their companies, stocks, or even cryptocurrency.
They have many ventures, many businesses or investments around the world. So choosing one source of income may go against what you’ve heard.
Yes, rich people have multiple sources of income, multiple investments, and multiple companies. But that’s after we get rich, after we have made the money from that one big source of income first.
So here’s my suggestion for you. I’m generalizing this because it depends on your income level and where you live. Pick one source of income and get to a minimum of making $10,000 a month first.
Then maybe you can diversify and look at something else or maybe not. If you can make $10,000 to $30,000, why would you want to work on multiple income sources and make less than that each month?
To provide some context, the median household income in the U.S. last year is $61,372 for the typical family. That’s just over $5,000 a month. It’s not a surprise that many people are looking for multiple sources of income. Based on a survey of 2,000 Americans, men wish they could be earning $445,000, while women wish they could be making $279,000 per year.
This wide gap between goals and reality is even more reason why people need to focus on one skill that will make them a high income, instead of making a less substantial amount from many sources.
Just pick one thing. Focus before you’re rich, then diversify after you get rich. If you want to know what is that one source of income that you should focus on, click on the link below and I’ll teach you that one skill.
Final Thoughts On Multiple Sources Of Income
While it is true that rich people have multiple sources of income, for the majority, having more than one source of income is a bad idea. Too many people are spreading themselves thin over multiple income options.
Rather than making a mediocre income from multiple sources, it makes more sense to make a high income from one source, based on one skill that you have mastered. When you have that single stable income source, that is the time to diversify into multiple income streams.
What is one source of income that you want to learn more about? Comment below.