Current Streams of Income
One of the areas I want to pay more attention to is developing multiple streams of income. I hope to dig into over the next week.
The concept is to develop income from multiple areas basically so that "all your eggs aren't in one basket". Lets face it, if I lost my job tomorrow I would be in bad shape. I am dependent on my job salary for monthly expenses and growing my net worth. By putting effort behind activities that generate income from different areas, I will be in better shape if something unexpected happens, as well as putting myself in a position to further increase my net worth.
Ultimately my goal would be to have enough income from different areas (other than my current job) to support my consumption. Then I would be much closer to becoming financially free.
Streams of Income
Today I have income from my job, the rental property, dividends, interest (mostly from 0% balance transfer offers), and a side business. Here is a pie chart (estimated) of where my 2006 income is coming from.
Looks pretty dismal. My job is bringing in all the significant income today. Since a large portion of my investable wealth is tied up in retirement assets thats not too unexpected. I just need to figure out how I can improve this picture.
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