The average millionaire in the world has seven sources of income. There are many millionaires and billionaires though who have a lot more than seven. The billionaire investor Warren Buffett, for example, has 70 different sources of income.
The average person, however, only has one source of income, which is typically their job.
Many people don’t even have one source of income, so even having just one source is great.
The danger though of only having one source of income is what happens when things go bad?
What happens if the economy goes into another recession? What happens when industry innovation pushes you out of your job because machines can now do what you do? What happens when your company finds someone better who can do your work at a cheaper price?
On the other hand, what would happen if you set things up so that you were getting income from 7 different places each month?
It would probably do a lot for you.
It’s important to recognize that if you’re like most people, who rely only on their salary from their job, then you’re going to experience a lot of stress in your life.
You’re going to make a lot less money than you should. You’re going to enjoy life a lot less. And you’re not going to be able to travel as much or do all the things you want to do.
This is why Warren Buffett says creating multiple streams of income is one of the most important principles you can learn in life.
All it takes in order to do this though is a few short years of intentional and focused work.