Multiple Streams of Income?
Growing up dreaming of riches, I always looked at multiple streams of income to meet my dreams. I’ve thought about having rentals, businesses, investments, stock trading and my regular 9-5 job as sources. My question is, should I be focused on smaller multiple streams of income? Or focus on larger, single projects?
So far, this is what I have:
- Regular 9-5 job
- 1 Rental Property
- Investments/Stock Trading
- Online Income
Looking at other gurus at each of these fields, it looks like becoming a master in one field will yield success.
Regular 9-5 job
- A person who becomes the best in their field usually succeeds the most relative to their peers. I’m sure that most of you who work regular 9-5 jobs see that the ones who perform the best, get promoted the fastest.
Rental Properties/Real Estate
- I know a few real estate investors locally who have focused on their rentals and have become very wealthy. They focused their investing efforts towards buying houses and very little of anything else. As a result, the investors that I know have quit the rat race and live off their rental income.
- There are an abundance of successful stock investors/traders out there who have put their life work towards trading/investing. Warren Buffet is a big name that comes to mind, others include Eddie Lampert, Francis Chou, Peter Lynch, George Soros…
The Downside of Focused Earnings
- Like investing in the stock market, focusing on one source lacks diversification. For example, if the real estate markets turn sour, or when the stock markets correct your earnings/returns are looking at huge swings. I guess successful people in those fields have the stomach to tolerate such swings.
So what do you think? Perhaps I should put a focus on one field instead of being a scatter brain? Or does the diversification help protect my downside?
Perhaps I’m still trying to find the source of income that brings me the most enjoyment.