Why Multiple Sources of Income is the Best Way to Build Wealth

No matter how much money you earn, unless you build wealth, you will fall right back into poverty. Earning an income is good but building wealth is better. Whether you are employed in a leading company or you yourself are running a successful company, you can’t build wealth and be truly wealthy, without getting multiple sources of revenue. 

For instance, who would have imagined a large multinational company, that too a technology leader and vanguard of mobile technologies like Nokia would close their operations due to their inability to compete with newer Android phones. Similarly, anything can go wrong in our lives. So, instead of being dependent on a single source of income, it is better to diversify your income sources. If you aren’t already making money through the internet, it is high time that you learn how to earn money online.

Learn a New Skill - Sell Your Services to People in Need

All businesses need an investment. Even if you are not wealthy enough to make an investment you can leverage the power of the internet and learn how to earn money online. 

Learning a new skill is not going to take a lot of investment in terms of money. You will need to put in the necessary time and effort to equip yourself with new skills and knowledge that will help you earn more money. Once you have learnt and practiced the skill for a sufficient amount of time, you can start selling your skills as a service. For instance, learning about specialized products like phenix rod can open up niche markets for you. When you start to freelance for other people or companies, you will build up a portfolio with which you can approach larger businesses and propose better projects. Slowly, you will be able to widen the services that you provide.

Start an Online Agency Related to Your Skills and Strengths

Once you expand your list of services to a considerable size, you can then start working along with other freelancers who will be able to provide allied services. With passage of time, you can start an online agency and provide better services to businesses. Once you have built an agency, it is easier to scale your services and earn more money. Upon building a reliable team of professionals, you can almost automate your business and put the operations on auto-pilot. This way, you would have put your knowledge of how to earn money online into good use.

Invest in Blockchain Technology and Cryptocoins

Cryptocurrency is the currency of the future. With a highly efficient and redundant blockchain technology, cryptocurrency is safer and reliable. Make small investments in these cryptos and learn how to invest in these segments. 

As the old adage goes, don’t put all your eggs in the same basket. Invest wisely and use a number of reliable cryptocoins. As far as the crypto currencies are concerned, the right strategy is to HODL - i.e., “Hold On for Dear Life”. Don’t be in a hurry to encash your crypto portfolio.

Diversify Your Assets and Investments

Apart from digital currency, you can also start a dropshipping company that buys products from a country that uses cheaper currency and sells them at a country that has a dearer currency. This exchange rate and the better market opportunities will help you to earn money consistently. 

When you do such businesses, there is one important rule to follow. Don’ty take the investment out. Replough your earnings into the business and soon you will be able to grow the business beyond your initial expectations.

Minimise Wasteful Expenses and Save Your Money

Even if you are earning a million dollars per month but if your expenses are a million you are still saving none. You are broke with money. So, minimise wasteful expenses. In order to build wealth, you not only have to know how to earn money online but also how to save your money and reduce expenses. 

Don’t spend on depreciating assets. Buying a luxury car is of no real value in the long run. If you want to experience luxury you can hire those cars for a day or two. Similarly, don’t buy anything that is not going to be used by you. As a general rule of thumb, unless you are using it for 100 days per year, don’t buy it. Don’t buy that fishing boat, if you don’t regularly go on fishing trips. Similarly, if you are someone who likes to travel, then don’t buy a home in a far off place. Housing is one of the least performing assets in the world. It is cheaper to rent yourself a home instead of buying it.

If you can follow all these steps, then you will be able to diversify your income sources and slowly build wealth. If you build yourself a business then that is generational wealth that you can leave for your children.