Friday, February 01, 2008

Hidden Gold in My Boot

Yesterday I found a gold nugget in the boot of my car. My friend asked me over to his place to get a second set of eyes on it before he listed it for sale.

He’s spent the good part of a year renovating the 2 houses on both sides of his. And now it’s almost time to put them on the market. He’s added several nice touches including a Koi pond and a gazebo in the back garden. As the weather gets colder and the ice starts to thicken, it’s a perfect place to sip coffee and watch the carp swim about drunkenly. Somehow the fish survive - though the temperature is as mild as a Vancouver winter. These additions are more from the heart than for the wallet. Carl’s embellishments may be just the right touch to sway certain buyers and perhaps even deter a few.

The recovering alcoholic photographer for instance, loved what he could do with the wine cellar. It's true, he didn’t see a wine cellar he saw a darkroom: cool and temperate for his sensitive films. He was the one that brought up the fact that he no longer drinks.

But, what about the chunk of gold in my trunk you ask?

I found an old Robert Allen book, Multiple Steams of Income. I’d read the revised version a few years ago. Challengingly I flipped it open and dared Robert to show me a new stream- and he did in about 30 seconds. It was a copywriting niche that with a bit of time and research could pay off for the right person. What really impressed me was the “idea” of creating multiple streams of income. That book and others like it are brilliant because they teach you to “fish“ and therefore, never go hungry.

If you depend on a single revenue source to provide for your future you’re supported on a stool that could topple at any time. Can it take the weight of a recession, unexpected illness or worse? Probably not, your table needs 3, 4 or more legs so that if one is eliminated, you won’t even wobble.

Building multiple streams of income will not only strengthen your reserve but also help protect from the risk of a sudden amputation and keep your table standing. Stocks toppling and U.S. Subprime woes, reinforces the fact that having cash flow coming from multiple sources is crucial.

Some properties you’ll own for capital gains, others for cash flow, some stocks for dividends and others for wealth creation, a few online stores for passive income and so on. These building blocks form an excellent foundation enabling you to safely shift, but not crumble, if a financial earthquake should hit.

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