How to Create Multiple Income Streams
Hey there. Tim here.
I was in Estes Park this weekend. I saw a HUGE Elk with giant antlers. I'm a city boy so I've never seen anything like that before. It was awesome.
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This week's issue is brought to you by The Premium Ghostwriting Blueprint. Dickie and Cole know their stuff. You should check it out.
1. The 3 Step Process To Creating Multiple Income Streams
The reason I started this newsletter in the first place was because I wanted to teach people how to create multiple income streams. Although that is still the main message behind my personal brand, I have expanded my writing with specific money making lessons and personal anecdotes as I build my own companies.
This week, I'm going back to basics and teaching you the principles you need to learn in order to create multiple streams of income.
This is how you generate wealth.
Step 1 - Create Cash Flow
You need cash, full stop. For many people, this is the hardest step, but it doesn't have to be.
This is why I advocate for you start start a service business. Whether freelancing or building an agency, a service based business is a great way to generate profitable cashflow without a lot of expenses.
Note* - I've created an entire course that shows you exactly how to do this. It's only $99.
Let me also make something perfectly clear. It's entirely possible to generate multiple income streams without owning a business. In fact, most millionaires have steady salaries.
Now, I could never have a job. I'm an entrepreneur, through and through. But generating wealth isn't about entrepreneurship, it's about following a process.
So if you want to keep your job, start an agency, start a hide hustle, or even open a car wash ... the first step is all about generating cash flow.
Cash is the lifeblood. Without it, it's a non starter.
Step 2 - Buy Assets
What is an asset? Do you actually know?
You probably think your house, your car, or even your jewelry are assets.
That's incorrect, they are liabilities.
Simply put, an asset is anything that puts money in your bank account. A liability is anything that takes money out of your bank account.
Assets generate cashflow. That's it.
So what are some possibilities for you to create assets?
- A rental property
- Investing in the stock market (I invest in the S&P500 and I buy ETFs)
- Buying equity in companies (this is my preferred method)
- Starting a side company
Now, assets do two things. They increase your cash flow and they rachet up your earnings per unit of time. Assets do the hard work for you. It's not to say that building assets doesn't require effort on your part, but rather they create a system that generates more money per unit of effort and time.
It's not about passive income. It's about more income in relation to your effort.
You want to continue growing the cash you generate per hour of your life. You don't trade your time for money, but rather your time works for you. So every hour of your life becomes exponentially more profitable.
Step 3 - Use That Cash Flow To Buy More Assets
There's a difference between being rich and being wealthy.
Rich means you have a lot of money. Wealthy means you have a lot of assets.
At any given moment, I have probably $100,000 in the cash available to me. Now I agree that $100K is a lot of money, but it's not life changing money. If you look at my bank account, I'm not rich.
But on paper, my wealth is probably around $15M. If everything went perfectly (which it never does) I could probably sell everything for $15M cash. This would include ...
- Stodzy
- Recovery Local
- Copyblogger
- Digital Commerce
- YourBoulder (Which is actually making money now HYFR!)
But, why would I do that? Why would I cash out on a portfolio of assets that make all the money for me, without requiring me to work harder?
I use the cashflow that my assets generate, and I buy more assets. This is what creates the exponential growth. Your wealth stacks on top of itself.
This is why most people stay broke. We are taught that hard work is how to make money. Although I believe that hard work is a requirement, is it not even close to the key factor in generating wealth.
Wealth requires leverage. Leverage is a fancy term which simply means you increase the ratio of output (what you get) in relation to your inputs (what you put in).
If you want to get wealthy, you need to build assets. It's really that simple.
It's the most valuable lesson you could ever learn, but 99% of people never learn it, which is why the 1% remain the 1%.
ACCOUNCEMENT: I Acquired 30% Of Cuppa.SH
I don't just write about these principles, I act on them. For proof, I'd like to share with you my latest investment.
This is a project I have been working on in stealth for the last two months.
My partner, Chris Riley has been running the development team on this bad ass new product and I can confidently say that we are building the most useful A.I. writing assistant in the world.
You can sign up for a free trial by clicking here.
2. Finding Your Path: A Conversation with Eric Lam
In this episode, I talk with Eric Lam who has gained momentum for his work on the Exploding Ideas newsletter.
We discuss Eric's background in music and how it led him to his current business. Our conversation also touches on Reddit, recognizing potential, and building a personal brand. Listen in to learn more about Eric's journey and his experiences in the world of content creation.
Click here to listen to the full episode.
3. This Newsletter Is Brought To You By The Premium Ghostwriting Academy!
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4. The Easiest Way To Market Your Side Business
Last week, my guest Jacky Chou dropped a knowledge bomb with this video.
Documenting the process is one of the most effective ways to get your message out there.
Everyone loves to get involved in the emotional journey, and this strategy will get people rooting for you.
Click here to watch the video.
5. The New Economy
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Things are different.
You have two choices.
You can fight change or you can embrace it. Me? I'm choosing to embrace it and I will be rewarded for it.
What's your choice?
I hope you all have a great week. As always, feel free to hit reply and let me know what you think or if you have any questions I can answer.
Love you guys.
Talk to you next week.
Tim