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Having multiple sources of income

Enhanced Transcribed:

Hey everybody it’s Dr Ro I wanted to send a quick message to you. 

I had a great conversation with a very dear friend of mine just a little while ago, and triggered a thought in my mind and the conversation has been coming up in recent months. 

That is what’s best to go into? 

Is it best to go into real estate, i.e. property? The stock market? Is it best to go onto the Internet and start a business? 

What do I do? 

Actually the answer is you’ve got to step back and ask yourself several questions and I’m a massive believer in multiple sources of income. I learnt that back when I was in my 20s, which is 30 years ago now, and that’s when I started my first business ventures. 

One of the first things I looked at was selling things. I think at one point I tried to sell jewellery and got involved in a network marketing business separately to that. So I was very aware, even as a student there are other ways I can generate an income before I get to my job and that’s like 25 years ago. If you’re currently stuck in a job or you found yourself thinking maybe this Covid thing is getting me to rethink my future then I think the main message I want to give you is this, it doesn’t have to be a one or the other. 

That’s a really important lesson: you can have multiple sources of income and those multiple sources of income and my good friend Jim Francis, many years ago explained to me, even though I had an awareness of it. 

I was looking at property at the time and he said to me, at the end of the day, you may live one strategy. But even in real estate there are multiple sources of income within real estate. A lot of people when I teach at the ground level starting out most of them have got to be a buy to let property and that’s only what they’re aware of, but the reality is there are six, seven, eight key strategies that you can actually move into within property which produce passive income. 

You’ve then got several sources of income. So through Covid for example, when I look at the portfolio there were certain areas there were no problems at all. Couple of properties we had a little bit of a challenge because of the students, but still fine and had to make some adjustments there and as you look across at any business, any property business for example, if you only have one strategy and it’s in one town and is one type of property and that type of property in that town and that strategy gets hit, for whatever reason, whether it’s an economic situation or imagine you only focus on students and no other exit strategies and you can’t rent out to the general public. Which would be a fall back that I would typically use if I need to. 

Then if that university closes down on my gosh you along with anyone else who owns property in the area would do the same thing. Whether you’re looking at a macro level within the business, i.e. property investing, you kind of need to diversify there. If you step back a little bit and say across property there are other type strategies as well as buying, selling, lease options et cetera that’s diversification, multiple sources of income. Now put alongside that you’ve created a digital product. 

You create a digital product, record something you write something, you video something and then you put out to sell. It may only make you five, 10, 15, £20 but if you made £20 profit and you sold 10 of those in months that’s £200. If you sold 1,000 of those a month that is £2,000 a month. 

Passive income, another source of income and now let’s say you decide to trade the stock market. It is more active and you put 20 grand in there and you’re making 7% per month you now create another source of income as well.

So during times like Covid what I’ve observed in myself, but also the people around me that have created that security is, although you’re aware that there are areas that might be tightening down, you have to then be open to opening up other areas even widening the highway. It’s that flow remember, so if you have a narrow highway and you have multiple sources of income and one of those highways has the ability to widen in other words more strategies within that particular strategy that might be a good thing to do.

If you’ve got something working well and a single lane highway and say this is a business model. It could be an online business, it could be selling widgets, investing in property. Whatever you do if you could widen the highway or if you can increase the flow and the traffic going down it now you run a similar model parallel to that. And another model parallel to that that will be really profound as well as it allows you to increase your income on a broader spectrum. 

Have a think right now about the type of businesses or strategies you can implement in simple terms there are three highways, there is the property highway, the stocks, commodities highway and then there’s the business highway. 

What if you opened a valve in each one of those that would be amazing? 

I’m going to sign off. I shall see you on my next live. 

Disclaimer: This video or written publication does not offer investment or financial advice and nothing in them should be construed as investment or financial advice. Our publications provide information and education only. The information contained in our publications is not, and should not be seen as a recommendation to use any particular investment strategy. Always seek financial advice from an independent financial adviser around your own personal financial situation.

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