For the FreeProer, offense = income.
It seems like everyone these days is talking about “developing multiple streams of income.” The problem is, in order to make money from real-estate or in the market or a wide variety of other investment opportunities, you need to first have a big chunk of change that can be tied up to provide a thin trickle of extra income. Building an additional stream of income in this way is a “long play,” and requires patience, intelligence, and usually more than a little luck.
So think of investments as your “Fifth stream.” It’s ok to plan ahead and start investing so this stream can grow with time. But understand, it WILL take time. Build with patience.
However, that doesn’t mean you have to settle. You can produce reliable streams of additional income. Even though you’re young and short on cash, you’re likely loaded with energy. So, focus on these reliable streams of income.
Income Stream #1: your primary job. This provides the steady income to sustain life and begin to build your savings. Never neglect your job as your primary stream of income, as well as a primary “teacher” in your life. If you decide to change jobs at any point in the program, make sure your next job is lined up before you quit the one you have.
Income Stream #2: work more hours at your primary job. When you work more hours, you push past your needs and can save a higher percentage of each dollar earned. And, working more means less time to spend money, so those extra hours can have an extra compounding effect on your net take-home pay, and therefore on the size of your income stream.
Income Stream #3: work overtime at your primary job. Overtime is often paid at time-and-a-half or even more. So overtime hours can help turn your income streams into a nice waterfall.
Income Stream #4: Pick up a second job. Evenings. Weekends. A high percentage of this reliable additional income stream can really bulk up your savings
Building strength in these four streams frees up the cash you’ll need to start that Stream #5.
NOTE: Most FreePro graduates have been able to accomplish their targets with only streams #1, #2, and #3. How? By working crazy hard and capturing the extra they generate.