Do Millionaires Really Have Multiple Streams of Income?
I often get asked, “Cash flow millionaires have multiple sources of income, right?” And I really don’t know if that is true. I have to challenge that thought process because, in my years as an entrepreneur, I made my millions with just one stream. Mind you, I have read the book “Multiple Streams of Income” by Robert Allen who made his money in real estate and wrote a book about it.
I remember reading it in the early 2000s. There are lots of ideas and thoughts in the book and I attempted executing these theories for five years but to no avail. As I said, I made my money with just one source. When I’m thinking about money, I’m thinking about your capacity to learn one skill, one idea or one business. I’m thinking about just one thing.
I am not someone special. I am not a Harvard graduate, I didn’t go to the Ivy League colleges like Cornell, Princeton, Yale or anything like that. I was just a simple kid who was born and raised in Chicago. I went to the military, the Marine Corps. My capacity to learn a lot of things is pretty small.
Now, I know there are a lot of talented people out there who can digest a lot of things, who can wrap their heads around several subjects. But here’s my thing. I found myself as a single dad when I was just out of the Marine Corps. I found myself working at the YMCA. And here’s what I discovered. It was too freaking complicated. It was too complicated to learn network marketing, real estate, gold, all these different things. So many things to learn.
So, I decided to focus on one thing. I decided to focus on my business inside the insurance industry for 14 years. I started making six figures, then mid-six figures. Then I realized that I was on to something. Because the hardest thing about making six figures is making your first hundred thousand dollars. It only gets easier from there because you already know the steps to make a hundred grand.
When I hear people say that they have multiple streams of income, more often than not, they are not streams of income, they are trickles of income. And trickles, when spread out over multiple trickles, end up being nothing.
The thing is, you have to find out what your cash cow is. It will totally depend on you and what you can do well. For me, it is the insurance industry. You just have to figure out what you can do and focus all your energy on that one craft. It’s about mastering one thing instead of being a jack of all trades.
Yes, you can diversify and start setting up multiple streams but you have to reach a certain point first. First, you need to build a Mississippi of rivers, and then you can split it into multiple streams. That way, you could end up creating multiple Mississipi rivers. However, you shouldn’t start off this way. Or else, you will not make much of anything.