Posted at June 3, 2022 Posted In Blog, Passive Income

“Never depend on a single income, make investment to create a second source.”

Warren Buffett

In the fast-paced world we live in, things are changing quickly – and not always predictably. Change can often be incalculable and may come with great cost if you’re not prepared.

“Don’t put all your eggs in one basket.”

Diversification is a common strategy used to protect your overall financial position from unpredictable market cycles and investments that don’t go as planned. The conventional wisdom is that diversification should be practiced with investments to reduce your risk of loss. We agree… AND we believe diversification should also be applied to your income stream. Income diversification helps mitigate unforeseen changes to the recurring cashflow that supports your lifestyle.

It is normal for the majority of your income to depend on your ability to go to work each day. We all pride ourselves on working hard to provide for the lifestyle we enjoy with our loved ones. But, have you considered what would happen if you were unable to work tomorrow?

  • What would this mean for you?
  • What would this do to your lifestyle?
  • You probably have savings that could sustain your standard of living – at least briefly.
  • Maybe you have assets that you can liquidate, but how long would that really provide for you and your loved ones?

If you are working each day to actively produce all your income, you have put all your (income) eggs in one basket. Effectively, you have a single source of income — it all depends on you — you are the golden goose. This is risky!

Obtaining multiple income streams through diversification can protect you from complete loss of cashflow should you become unable to work for any reason. And it isn’t hard to get started!

We believe that one of the best ways to diversify your income is by passively investing in cash flowing assets. As a busy professional, we know that you cannot afford to invest more time. Investing in passive cashflow means that money comes in without depending on your ability to actively generate it. Once you begin to create multiple revenue streams, you will be less concerned about unforeseen changes impacting your livelihood. When you build passive income big enough to replace your annual earnings, it will offer you the freedom to worry less and do more things you love.

“The moment you make passive income… your life will change.”

-Robert Kiyosaki

Resources that helped us develop the skills and mindset required for passive income investing:

  • Book: Rich Dad Poor Dad – Robert Kiyosaki (hard copy or audio version)
  • Simulation: CashFlow the Board Game – change your life at your kitchen table
  • Podcast: Wealth Formula with Buck Joffrey

Are you ready to diversify your income and become a passive investor? We can help.

  • Establish the life you WANT to live.
    The Real Asset Investing Team is here to help guide you toward establishing a “life you WANT to live”. In the meantime, let’s start working on the “life you HAVE to live” and start creating a profitable, tax efficient, investment portfolio which will help catapult you toward your financial freedom.
  • Invest With Confidence During Uncertain Times.
    The news is filled with warnings of recession. During uncertain times, financial decisions carry more weight and need more attention.
  • Ways to Increase Financial Literacy
    At Real Asset Investing Team, we desire to help successful professionals create long-term wealth without paying massive amounts in taxes. 
  • Increase the efficiency of your financial plan.
    At the beginning of 2022, you probably set a financial goal and are now looking to confirm that your plan will ‘sure up’ well as we near the end of the year. It is imperative to make the right moves now in order to make the most of your earnings this year. You are likely already investing money and now is a good time to be sure it is invested in the most profitable way for you.
  • Key Takeaways from The Investor Summit
    We just got back from the Real Estate Guys Investor Summit with Robert Helms and Russell Gray. What an amazing crowd of investors ...
© Copyright 2023 Real Asset Investing Team. All rights reserved.