This edition of A Design for Life highlights one of my favourite wealth building topics - Multiple Streams of Income.
Please help yourself to the offers available on the left. They specify US citizens only however a number are available to everyone.
Until next time, here's to your Health, Wealth and Happiness!
Daniel
The traditional model of achieving success, i.e. studying hard in school, specialising and following a career has been espoused and followed, largely without question for the past 100 years. We are encouraged by parents, teachers and other well meaning influences to stay in school and get the best education we can. This system serves to filter us into colleges, universities and hopefully well paid careers.
We then earn, spend, earn a bit more and spend a bit more. After all, don't we deserve a few of life's luxuries? All that study, the long hours, hard work and delayed gratification? So that new notebook computer or widescreen TV is more a reward than an indulgence, more a necessity than a luxury right? So too cars, we want the best we can afford, it's more cost effective is it not to finance a new model rather than risk the associated repair costs or an older one. So it begins the earn-spend-borrow-repay lifestyle cycle which has ensnared so many of us in the western world.
Robert Allen, best-selling author, likens it to walking up a down escalator. You have to keep moving just to keep still and if you should ever stop, the moving staircase will take you right back to where you started, i.e. the bottom. Or even worse, the basement.
So how then can we get ahead, switch off the escalator or ultimately turn it in our direction?
In the short term the answer is to spend less than you earn and save the difference - not very exciting but this alone will ensure that every two steps up will result in only one step down. By paying yourself first and investing relatively small amounts on a regular basis many people have achieved financial freedom and reached the top of their personal success escalators. Einstein considered compound interest as one of the great wonders of the world.
The Power of 72
In order to determine the time it would take to double your money, divide the current rate of interest into 72. For example if the rate you were receiving was 4% it would take compound interest 72/4 or 18 years to double your money.Consider however a much higher rate of interest such as 24%. At this level it would only take 3 years. Where can I see a rate like this you may be asking, well not on your savings but how about on your credit cards? Compound interest works both ways and at these levels you will double your debt in just 3 years (allowing for minimum repayments etc).
To really turn the tide in your favour you should consider generating additional or multiple streams of income. Robert Allen - in his outstanding book 'Multiple Streams of Income' explains 12 simple, proven methods to begin to turn the tide and the escalator in your favour by breaking down the fastest ways of generating additional income describing them as four money mountains; starting your own business, real estate, the stock market and the internet.
One great place to start your climb to success is to cultivate a success mindset. Read and listen to inspirational materials that will not only educate but begin to imprint the endless possibilities upon your subconscious mind. There is more material on the subject of success today than at any time in our history. So don't delay, when would now be a good time to get started? And always remember that it's your attitude that dictates your altitude!
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