Image below suggest how the multiple streams of passive income can be descibe as having many golden geese that lays golden eggs into your income channel:
Why Multiple streams of passive income
First of all, to understand why it is better to have multiple streams of passive income is because passive residual income is a more preferred income.
And according to law of normality, non of the rich people I know survive on a “job”.
Secondly, when we are talking about “multiple streams”, it means the income source may vary. This is good as when accident happens to one of the income streams, the income will still coming in even though not as much as when all income streams function properly. So, having multiple streams of passive income is a kind of diversification and reducing risk of having no income at all.
Thirdly, having multiple streams of passive income means the total amount of income may be much more than just having one income stream that is not producing much income. Unless the only income producing stream generates the income in such a huge amount that you don’t need to look for multiple streams of passive income, which does not happen to most of the ordinary people.
Multiple streams of passive income
There are four major battlefield to have your multiple streams of passive income, which are Business, Paper Assets, Real Estates, and Virtual Properties.
In businesses, we receive passive income as a business owner when the business is on track and generating good profit. This is a huge topic and we shall cover it in our upcoming postings.
In paper assets, we could have multiple streams of passive income via stock markets, money markets, commodity market, and other financial products related income channel.
In real estates, we could have our passive income streams through the rental we collect, even if we are still serving the property loan, as long as the rental received is more than to cover the maintenance and the property loan.
In virtual properties, we could setup a website or multiple websites and make money from advertising dollars, affiliate programs, resale rights virtual products distribution, and even with our own digital products.
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