Investing in Multiple Streams of Income? (NOT get rich quick)

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AaronScott
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Investing in Multiple Streams of Income? (NOT get rich quick)

Post by AaronScott » Tue Jun 18, 2019 8:01 pm

Hi everyone!

I've been grappling lately with trying to square this circle. My general sense of Boglehead-ism is to live well within one's means, invest in broad low-cost index funds, enjoy the fruits of the market, and have a happy retirement.

HOWEVER, I also enjoy reading books and articles about general personal finance and building wealth (think Business Insider, CNN Money, Richest Man in Babylon, Rich Dad Poor Dad, etc.). To be clear - I am NOT talking about getting rich quick or mythical passive income where you do nothing and money pours in. I'm talking about real serious long-term wealth building.

One of the key ingredients to wealth building which I see pop up, again and again, is having multiple sources of income. Many will talk about side hustles, and others will talk about investing for income (for example, owning rental properties or dividend-paying stocks).

I'm curious as to what degree Bogleheads will invest money into building additional streams of income and what those streams might be.

And I know that 401(k)'s, IRA's, etc. are really great wealth-building tools. I'm thinking about this more in the form of diversifying income, should it be necessary. The more I funnel away now into those retirement accounts, the less I have available in a disaster-scenario 15 years from now, before retirement age (I'm 28). Or it might be a matter of whether or not I want to take a risk in my career, or be able to keep up with increased costs of living.

The way I see it, having additional streams of income offers security against disaster and opportunity for increased wealth. But I want to be really thoughtful and careful about how each dollar is spent.

Thoughts?


Thanks!

Aaron

P.S., Specific things I'm wondering if people invest in: Rental properties, REITs, Dividend stocks, Owning a business, Side hustle, Equities outside of retirement accounts

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fortfun
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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by fortfun » Tue Jun 18, 2019 8:21 pm

You might want to read responses to this thread.
viewtopic.php?f=2&t=269901

I think the main concern with rental properties is unexpected costs that could wipe you out (new roof, etc) and bad tenants. However, it has worked well for many. I finished my basement and rent it to mature adults. It is a nice income stream. Churning credit cards is a nice way to make extra money with very little effort. If you are willing to work two or three jobs, I'm sure it will pay off.

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by abuss368 » Tue Jun 18, 2019 8:35 pm

What about building a large enough portfolio that one can live off the cash flows from dividends?
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!"

petulant
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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by petulant » Tue Jun 18, 2019 8:41 pm

A stock index fund is the definition of multiple streams of income. The Vanguard Total Stock Market fund owns shares in close to 3600 companies. How can you get more streams of income than that?

Try checking out The Simple Path to Wealth by J.L. Collins from your local library. The foreword was written by Mr. Money Mustache--it would be helpful reading for you.
Last edited by petulant on Tue Jun 18, 2019 8:42 pm, edited 1 time in total.

rai
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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by rai » Tue Jun 18, 2019 8:41 pm

Can’t speak for others but to me 401k, IRA, 529s, HSAs are all tax shelters which I fill up to the limit and then I still have money left that I invest in a taxable account. That is in stocks and adjust my tax shelters to get the correct AA.

The taxable account is my safety net and gives dividends every month. I can call that an income stream and by the time you have a very large taxable account you can see some very impressive dividends.
"Life is what happens to you while you're busy making other plans" - John Lennon. | | "You say that money, isn't everything | But I'd like to see you live without it." - Silverchair

Mike Scott
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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by Mike Scott » Tue Jun 18, 2019 8:51 pm

There are also ways to get money out of most tax advantaged accounts before retirement if you really need it.

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by AlohaJoe » Tue Jun 18, 2019 8:51 pm

AaronScott wrote:
Tue Jun 18, 2019 8:01 pm
One of the key ingredients to wealth building which I see pop up, again and again, is having multiple sources of income.
FWIW, this is a complete myth. No one ever provides anything remotely close to actual evidence. Just a lot of talk.

Go look at the list of the Top 100 richest people in the world and tell me that "multiple sources of income" was a key ingredient to any of their wealth building: It is not. Every single one of them became wealthy by having a single source of income.

The best you could say is that once they are rich, some -- but not all -- rich people feel more comfortable spreading their wealth around. But I don't know of a single founder-billionaire who went around selling $2 billion of their company stock and then buying $2 billion of commercial/rental real estate.

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by KlangFool » Tue Jun 18, 2019 9:12 pm

OP,

What is wrong with the followings?

Earn, save, invest.

1) Earn enough so that you can save 1 year of expense every year.

2) Invest your saving

3) Buy a reasonable house to fix your housing expense = 40% to 50% of the inflation rate. Then, your personal inflation rate is lowered than the official inflation rate.

4) Do this for 15 to 20+ years. Then, your portfolio is 25 to 50 times your annual expense.

What else do you need?

KlangFool

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unclescrooge
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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by unclescrooge » Tue Jun 18, 2019 9:14 pm

AlohaJoe wrote:
Tue Jun 18, 2019 8:51 pm
AaronScott wrote:
Tue Jun 18, 2019 8:01 pm
One of the key ingredients to wealth building which I see pop up, again and again, is having multiple sources of income.
FWIW, this is a complete myth. No one ever provides anything remotely close to actual evidence. Just a lot of talk.

Go look at the list of the Top 100 richest people in the world and tell me that "multiple sources of income" was a key ingredient to any of their wealth building: It is not. Every single one of them became wealthy by having a single source of income.

The best you could say is that once they are rich, some -- but not all -- rich people feel more comfortable spreading their wealth around. But I don't know of a single founder-billionaire who went around selling $2 billion of their company stock and then buying $2 billion of commercial/rental real estate.
Lots of wealthy people started multiple businesses. Richard Branson, Dhirubhai Ambani, Ratan Tata.

Personally, i think it is more about diversifying risk, rather than trying to create wealth.

Dottie57
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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by Dottie57 » Tue Jun 18, 2019 9:44 pm

Sometime past 70, I plan on an annuity, SPIA. So I will have 3 income sources: SS, retirement accounts, and annuity. Never chased wealth building. I just want enough in retirement.

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by Sandtrap » Tue Jun 18, 2019 9:55 pm

Here is one example of slow and steady multiple sources of income.
YMMV

1. Work at fruitful career with great income and retirement benefits that include health care.
Income streams:
A. Earnings, paycheck. (now)
B. Contribution to pension, 401k. (now for later)
C. Contribution to IRA. (now for later)
D. Save as much as you can from earnings after B & C and invest in a 3 fund portfolio, or cash, etc.

2. When you have enough of D (above), then purchase a duplex. Rent one side out. Live in the other. Continue A-D

3. (Repeat #2)

4. (Repeat #2 and purchase a fourplex and rent it out.)

5. At some point, collect the following income streams as you are eligible.
A. Pension (401k)
B. IRA
C. Social Security
D. Portfolio dividends, interest, etc.
E. Rental income
Wiki Bogleheads Wiki: Everything You Need to Know

retire2022
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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by retire2022 » Tue Jun 18, 2019 10:06 pm

abuss368 wrote:
Tue Jun 18, 2019 8:35 pm
What about building a large enough portfolio that one can live off the cash flows from dividends?
Here is a thread on this, however one needs first million and living on 4% dividends to provide 50K a year:

viewtopic.php?p=4600113#p4600113

ohai
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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by ohai » Tue Jun 18, 2019 10:43 pm

OP, you could spend a lot of time working three kinds of jobs - write a book, while running an Amazon store, while doing something else, etc. However, for most people, the most efficient way to transform time into money is to invest in a single high paying profession. If you really are the type of person with the work ethic and talent to spend 80 hours a week on side hustles and successfully "cultivating multiple income streams", you should also be able to succeed as a highly paid doctor, lawyer, hedge fund manager, and so on...

Once you have such a career, why would you spend any time at all being a landlord or flipping houses? The same time in your main job should have better returns over time. This is when you invest your savings in stocks and earn money by being a capitalist, just like the founding fathers intended...

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Sandtrap
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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by Sandtrap » Tue Jun 18, 2019 11:00 pm

AlohaJoe wrote:
Tue Jun 18, 2019 8:51 pm
AaronScott wrote:
Tue Jun 18, 2019 8:01 pm
One of the key ingredients to wealth building which I see pop up, again and again, is having multiple sources of income.
FWIW, this is a complete myth. No one ever provides anything remotely close to actual evidence. Just a lot of talk.

Go look at the list of the Top 100 richest people in the world and tell me that "multiple sources of income" was a key ingredient to any of their wealth building: It is not. Every single one of them became wealthy by having a single source of income.

The best you could say is that once they are rich, some -- but not all -- rich people feel more comfortable spreading their wealth around. But I don't know of a single founder-billionaire who went around selling $2 billion of their company stock and then buying $2 billion of commercial/rental real estate.
+1
This generalization sounds like an infomercial for a "wealth building" seminar or book series, etc.

Wealth is built step by step within a chosen niche and either expanded upon vertically or horizontally, as far as business are concerned. IE: J.D.Rockfeller (horizontal integration) VS Carnegie Steel (vertical integration).
j
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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by willthrill81 » Tue Jun 18, 2019 11:32 pm

AlohaJoe wrote:
Tue Jun 18, 2019 8:51 pm
AaronScott wrote:
Tue Jun 18, 2019 8:01 pm
One of the key ingredients to wealth building which I see pop up, again and again, is having multiple sources of income.
FWIW, this is a complete myth. No one ever provides anything remotely close to actual evidence. Just a lot of talk.

Go look at the list of the Top 100 richest people in the world and tell me that "multiple sources of income" was a key ingredient to any of their wealth building: It is not. Every single one of them became wealthy by having a single source of income.

The best you could say is that once they are rich, some -- but not all -- rich people feel more comfortable spreading their wealth around. But I don't know of a single founder-billionaire who went around selling $2 billion of their company stock and then buying $2 billion of commercial/rental real estate.
I entirely agree with you, but just to play devil's advocate a bit, not one of those people got where they were via the 'Boglehead' way.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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willthrill81
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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by willthrill81 » Tue Jun 18, 2019 11:34 pm

Sandtrap wrote:
Tue Jun 18, 2019 9:55 pm
Here is one example of slow and steady multiple sources of income.
YMMV

1. Work at fruitful career with great income and retirement benefits that include health care.
Income streams:
A. Earnings, paycheck. (now)
B. Contribution to pension, 401k. (now for later)
C. Contribution to IRA. (now for later)
D. Save as much as you can from earnings after B & C and invest in a 3 fund portfolio, or cash, etc.

2. When you have enough of D (above), then purchase a duplex. Rent one side out. Live in the other. Continue A-D

3. (Repeat #2)

4. (Repeat #2 and purchase a fourplex and rent it out.)

5. At some point, collect the following income streams as you are eligible.
A. Pension (401k)
B. IRA
C. Social Security
D. Portfolio dividends, interest, etc.
E. Rental income
:thumbsup

Those income sources are by far the most common among American retirees (although obviously not all retirees have all of them), including many of those most would consider to be 'wealthy'. Realistically, about the only other semi-common income source that could be added to that list is business income.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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willthrill81
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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by willthrill81 » Tue Jun 18, 2019 11:39 pm

AaronScott wrote:
Tue Jun 18, 2019 8:01 pm
One of the key ingredients to wealth building which I see pop up, again and again, is having multiple sources of income. Many will talk about side hustles, and others will talk about investing for income (for example, owning rental properties or dividend-paying stocks).
The common thread in those instances is 'talk'. Most of the people doing those things are getting the bulk of their income from selling books, advertising space, seminar 'opportunities', etc. Even Dave Ramsay didn't make his money by practicing what he preaches; he did it primarily by selling millions of books (and selling 'membership' in his 'ELP' program to financial advisors salespeople).

That being said, if this interests you, then there are three routes you might want to consider beyond the 'normal' path (i.e. get a job, save a good portion of your income, eventually convert the savings to income): part-time job, rental properties, and take part in business ownership. To be very clear, none are necessary to building wealth.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by jminv » Wed Jun 19, 2019 2:18 am

So, what you’re saying is that you think that diversifying your investments is a good wealth building tool. For example, by owning the total market. That is a good idea...

More to your actual post, income doesn’t matter, total return does. If I am getting my total return in a way that is already diversified while already contributing the most that I can, then I shouldn’t really care about throwing more darts at gold, timber land, dividend stocks, etc.
Specific things I'm wondering if people invest in: Rental properties, REITs, Dividend stocks, Owning a business, Side hustle, Equities outside of retirement accounts
People invest in those things. The first, fourth, and fifth items there involve running a business. Equities outside retirement accounts isn’t a wealth building tool per se unless you already max out al tax deferred space. If you like reits, there are index funds for that.

If you want to work more or change the nature of your work (rentals, side hustle, owning a business) then you can do that. The side hustle lets you trade leisure time for paid time ie work more. Owning a business let’s you be your own boss. Rental properties let you use leverage, get you rent payments, and perhaps property appreciation for hopefully not much hassle. Leverage can be very useful in building wealth since it can turn a small equity stake into a larger one with downsides of course

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by 4nursebee » Wed Jun 19, 2019 4:54 am

Tough crowd here.

Side hustle, hobby has been lots of work and fun, money losing. Quit some just as that was changing. Now at the point we don’t need to so likely not going to do more of that.

Real estate yes.

Pension yes.

Social security yes

Savings yes. There, that is four streams of income.

Fifth stream is decreased expenses. Simple living versus things like solar or construction methods, we have paid up early to save later

A farm interest could yield a 6th stream. Likely what I will focus on in retirement. Lots of stuff could still be bought to grow or improve, not sure how much to do this. Why work hard and spend the money if we do not need to?
4nursebee

B. Wellington
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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by B. Wellington » Wed Jun 19, 2019 6:21 am

Aaron, over the years the successful people I know had a few things in common. Some owned their own business, builders, HVAC, real estate, dentist, and even restaurants, etc.
While others worked A LOT of overtime or even 2 jobs. Today many of these friends are indeed "wealthy" and now retired.

FWIW, I worked for a couple of them and worked A LOT of OT. Plus my "side gig" was investing, taking the "extra" earnings and plowing them into stocks and bonds. One of many reasons why I tilt to dividend stocks and have been doing it for many years. This has become my second income stream later in life.

Real estate doesn't interest me today and I believe it is much harder to do then in the past. Those who put in the time and make it their second job have the potential to do well. I'm getting to old to make this a side hustle now and prefer to keep investing in simple mutual funds.

Best of Luck to you.

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AaronScott
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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by AaronScott » Wed Jun 19, 2019 7:01 am

Thanks for all the replies!

Just to be clear... It seems like most people here do NOT invest money into developing extra streams of income. And I'm not referring to savings/investments for retirement. I'm talking about now, during your working years, having income from a source other than your salary/wages.

FRANK2009
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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by FRANK2009 » Wed Jun 19, 2019 7:21 am

-Pension

-Social Security (eligible in few years)

-Low 7 figure portfolio

I have enough.

Frank

ohai
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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by ohai » Wed Jun 19, 2019 7:30 am

AlohaJoe wrote:
Tue Jun 18, 2019 8:51 pm
AaronScott wrote:
Tue Jun 18, 2019 8:01 pm
One of the key ingredients to wealth building which I see pop up, again and again, is having multiple sources of income.
FWIW, this is a complete myth. No one ever provides anything remotely close to actual evidence. Just a lot of talk.

Go look at the list of the Top 100 richest people in the world and tell me that "multiple sources of income" was a key ingredient to any of their wealth building: It is not. Every single one of them became wealthy by having a single source of income.

The best you could say is that once they are rich, some -- but not all -- rich people feel more comfortable spreading their wealth around. But I don't know of a single founder-billionaire who went around selling $2 billion of their company stock and then buying $2 billion of commercial/rental real estate.
This depends on what you define as "wealthy". If you want to make $100 million+, yes, usually the only way to do this is through concentrated risk and specialization. However, among people with merely upper middle class income, some end up with net worth of $10 million to $20 million, and others end up with $1 million. Usually, the higher net worth people have just saved and invested over their whole lives - they earn money through stocks or real estate, they have spouses who work, or they have some other source of wealth. Obviously, their net worth is more than the simple sum of saved wages.

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by Jack FFR1846 » Wed Jun 19, 2019 7:46 am

AaronScott wrote:
Wed Jun 19, 2019 7:01 am
Thanks for all the replies!

Just to be clear... It seems like most people here do NOT invest money into developing extra streams of income. And I'm not referring to savings/investments for retirement. I'm talking about now, during your working years, having income from a source other than your salary/wages.
There are tons of ways to do this that nobody has even mentioned that I already do. I don't pretend that any of these are "passive" like many landlord wannabes espouse. Like being a landlord, these all take some work on my part. What I currently do:

eScrap: Opportunistic collection of electronics that everyone just throws out. From businesses to families moving, everyone throws this stuff out. By separating boards from materials from trash, there's money to be made. I make it on a regular basis and work on this when I feel like it.

Tradelines: Big in the MMM crowd, I'm taking part in both the "old company" and the "new company" and my work involves calling the credit card company to add authorized users or just using the web site, then later deleting them. As MMM forums say, it's $1000 an hour job.

Credit card shenanigans. Everything from buying gift cards to get money orders through supermarket gas point deals to low balance forgiveness, I do a bunch of this stuff. All of it is done when I'm already shopping or already getting gas or already at Wal Mart or my credit union. I'll add churning for sign on bonuses in this one.

Bank and brokerage bonus hunting. Do I really care if my VTI is sitting at Vanguard or TDAmeritrade or Fidelity or eTrade or Merrill Edge? No. So I've got a bulk of money in an IRA that wanders around, getting paid to move periodically. Added to this, there's another bulk of money I move to open bank accounts for their bonus.

All of these things bring in streams of income. None are huge. I don't massively buy Simon gift cards for the cc rewards like some do, laying down 10's of thousands of dollars needed to make it worthwhile. But manufactured spending is alive and well. It's just not as easy as it used to be with redbird or savings bonds or US coins.

I could see myself someday driving for uber/lyft for fun and combining it with some other money making venture.
Bogle: Smart Beta is stupid

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by Sandtrap » Wed Jun 19, 2019 8:10 am

Jack FFR1846 wrote:
Wed Jun 19, 2019 7:46 am
AaronScott wrote:
Wed Jun 19, 2019 7:01 am
Thanks for all the replies!

Just to be clear... It seems like most people here do NOT invest money into developing extra streams of income. And I'm not referring to savings/investments for retirement. I'm talking about now, during your working years, having income from a source other than your salary/wages.
There are tons of ways to do this that nobody has even mentioned that I already do. I don't pretend that any of these are "passive" like many landlord wannabes espouse. Like being a landlord, these all take some work on my part. What I currently do:

eScrap: Opportunistic collection of electronics that everyone just throws out. From businesses to families moving, everyone throws this stuff out. By separating boards from materials from trash, there's money to be made. I make it on a regular basis and work on this when I feel like it.

Tradelines: Big in the MMM crowd, I'm taking part in both the "old company" and the "new company" and my work involves calling the credit card company to add authorized users or just using the web site, then later deleting them. As MMM forums say, it's $1000 an hour job.

Credit card shenanigans. Everything from buying gift cards to get money orders through supermarket gas point deals to low balance forgiveness, I do a bunch of this stuff. All of it is done when I'm already shopping or already getting gas or already at Wal Mart or my credit union. I'll add churning for sign on bonuses in this one.

Bank and brokerage bonus hunting. Do I really care if my VTI is sitting at Vanguard or TDAmeritrade or Fidelity or eTrade or Merrill Edge? No. So I've got a bulk of money in an IRA that wanders around, getting paid to move periodically. Added to this, there's another bulk of money I move to open bank accounts for their bonus.

All of these things bring in streams of income. None are huge. I don't massively buy Simon gift cards for the cc rewards like some do, laying down 10's of thousands of dollars needed to make it worthwhile. But manufactured spending is alive and well. It's just not as easy as it used to be with redbird or savings bonds or US coins.

I could see myself someday driving for uber/lyft for fun and combining it with some other money making venture.
Good job. You've done well.
Curious.. . . . in what way are you a landlord?

j :happy

What I have done. . . . and it worked out okay . . . .

Multiple Income Streams: Concurrently. (all at once for 4+decades)

0 Side hussles as a journeyman finish carpenter (starting out while working in Finance)
1 Commercial General Contractor (built restaurants, etc)
2 Property Management and Service Company
3 R/E Development Company
4 R/E (privately owned) multi unit housing renov and rentals. (apartment buildings, etc)
5 Janitor, plumber, painter, groundskeeper, electrician, general fix it guy, late night tenant domestic dispute mediator . . . . :shock:

j
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Shallowpockets
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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by Shallowpockets » Wed Jun 19, 2019 8:26 am

OP, you are 28. Time is on your side for basic accumulation. Is this extra income what you want now to better your lifestyle? You could do all the side hustles you want. Then you trade off time in the other direction. Time works in saving and investing, but with side hustles, you essentially spend time you would otherwise have as time off. And time off is life. You can never get that back. so if you immerse yourself in time consuming hustles, you are in that boat.
You are 28 and reading this Boglehead web site. I am sure it has made you somewhat impatient to achieve what others have achieved, but most of us took a lifetime to do it. Don't get ahead of yourself. it is the long game here. There are no substitutes for most of us. Even if you get a whole bunch of other income streams, it will probably increase your expenses and life style and make it harder. Now that 1 million you want/need becomes 5 million. You need more money, more income. The snowball effect.

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by KlangFool » Wed Jun 19, 2019 8:42 am

AaronScott wrote:
Wed Jun 19, 2019 7:01 am
Thanks for all the replies!

Just to be clear... It seems like most people here do NOT invest money into developing extra streams of income. And I'm not referring to savings/investments for retirement. I'm talking about now, during your working years, having income from a source other than your salary/wages.
AaronScott,

And, why do they need to do that? If their income, saving and investing is good enough to reach their goals, why should they do more?

Please explain why is that necessary.

KlangFool

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by Jack FFR1846 » Wed Jun 19, 2019 8:49 am

Sandtrap wrote:
Wed Jun 19, 2019 8:10 am

Curious.. . . . in what way are you a landlord?
I WAS a landlord, renting my SFH while off to grad school. Even with a manager, it was far from passive and it was enough to convince me never to do it again. Heck, I even had to fight with the manager who screwed up when renting to the 2nd tenant, costing me money. It irks me when I hear interweb people who never have rented out a house to talk about it as passive income. No....VTI is passive income. Sit and wait for the dividends to arrive. VTI doesn't deduct money from the very first month's rent to mow the lawn because the manager said the lawn mower in the garage would be available to them, while that belonged to the previous tenant, so no, it would not be.
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rj342
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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by rj342 » Wed Jun 19, 2019 8:53 am

Sorry, never mind (where is post delete?)
Last edited by rj342 on Wed Jun 19, 2019 9:07 am, edited 2 times in total.

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by Sandtrap » Wed Jun 19, 2019 8:56 am

Jack FFR1846 wrote:
Wed Jun 19, 2019 8:49 am
Sandtrap wrote:
Wed Jun 19, 2019 8:10 am

Curious.. . . . in what way are you a landlord?
I WAS a landlord, renting my SFH while off to grad school. Even with a manager, it was far from passive and it was enough to convince me never to do it again. Heck, I even had to fight with the manager who screwed up when renting to the 2nd tenant, costing me money. It irks me when I hear interweb people who never have rented out a house to talk about it as passive income. No....VTI is passive income. Sit and wait for the dividends to arrive. VTI doesn't deduct money from the very first month's rent to mow the lawn because the manager said the lawn mower in the garage would be available to them, while that belonged to the previous tenant, so no, it would not be.
So true.
Good points.
Yes. Mangers, resident managers, property managers, can be a "thorn".

Thanks for sharing.
j :happy
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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by KlangFool » Wed Jun 19, 2019 9:02 am

OP,

Many of my family members are millionaires. None of them got rich by side hustles. They either focus on their job and/or business. Then, they invest their savings. In fact, among my family members that tried many side hustles, they were not successful. They did not spend enough time and effort on any single venture to make enough money to matter.

KlangFool

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by rj342 » Wed Jun 19, 2019 9:05 am

Jack FFR1846 wrote:
Wed Jun 19, 2019 7:46 am
eScrap: Opportunistic collection of electronics that everyone just throws out. From businesses to families moving, everyone throws this stuff out. By separating boards from materials from trash, there's money to be made. I make it on a regular basis and work on this when I feel like it.
Some questions:

How do you intercept enough junked electronics to be worthwhile? For that matter what is worthwile? ( $$ vs time input)

Who do you sell the boards/components to?

When I worked 13 years in electronics mfg in the 90s to early 2000s, as environmental regs toughened, the salvage market flipped, and where we formerly made a profit from selling our scrap electronics, solder dross, etc, it turned into an expense *paying* for hazardous waste disposal (heavy metals content).
Is that a factor at all?

Thanks.

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by KlangFool » Wed Jun 19, 2019 9:06 am

OP,

My mother has a favorite saying:

Even if gold fell from the sky, you will have to run faster than anyone else to catch it.

If there is money to be made, there will be competition. There is no long-term sustainable easy business. If you can make money, someone else will compete with you and do it too.

KlangFool

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by Tycoon » Wed Jun 19, 2019 9:10 am

KlangFool wrote:
Wed Jun 19, 2019 9:06 am
OP,

My mother has a favorite saying:

Even if gold fell from the sky, you will have to run faster than anyone else to catch it.

If there is money to be made, there will be competition. There is no long-term sustainable easy business. If you can make money, someone else will compete with you and do it too.

KlangFool
Your mother is wise.
Emotionless, prognostication free investing. Ignoring the noise and economists since 1979. I see the world as it is; not how I wish it to be.

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by vtjon02 » Wed Jun 19, 2019 9:39 am

AaronScott wrote:
Wed Jun 19, 2019 7:01 am
Thanks for all the replies!

Just to be clear... It seems like most people here do NOT invest money into developing extra streams of income. And I'm not referring to savings/investments for retirement. I'm talking about now, during your working years, having income from a source other than your salary/wages.
OP, I am 39 years old and have a successful full-time career. It requires me to work an average of 45-50 hours per week, frequently travel and sacrifice a lot. I got this job by building up my human capital by going to a great college, getting a MBA, getting professional certifications (CPA, CFA) and working for the first 15 years at a series of grueling jobs. During this period I started out making very little and working 80 hour weeks during our 9 month busy season. I had to travel almost 40 weeks a year. It was tough, but the rewards are huge. I now earn over 500k per year in a low cost of living area. My wife took a similar path becoming a physician. She too had to sacrifice completely. She now earns a little more than I do. We have no debt and over $4M saved. We will likely downsize our careers in the next 5-10 years.

Then I will pursue multiple sources of income. I will collect investment earnings, have a part-time consulting gig, invest in real estate and who knows I might even drive for Uber/Lyft. My life will work for a non-profit doing more rewarding work at about 50% of her salary. We have both been extraordinarily lucky and are very privileged to have had the opportunities that we had. But we also worked our a$$es off.

This is all possible because we developed our human capital, then aggressively paid down debt and invested. At your age stay the course and invest in yourself.

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by LFS1234 » Wed Jun 19, 2019 9:56 am

AaronScott wrote:
Tue Jun 18, 2019 8:01 pm
Hi everyone!

I've been grappling lately with trying to square this circle. My general sense of Boglehead-ism is to live well within one's means, invest in broad low-cost index funds, enjoy the fruits of the market, and have a happy retirement.

HOWEVER, I also enjoy reading books and articles about general personal finance and building wealth (think Business Insider, CNN Money, Richest Man in Babylon, Rich Dad Poor Dad, etc.). To be clear - I am NOT talking about getting rich quick or mythical passive income where you do nothing and money pours in. I'm talking about real serious long-term wealth building.

One of the key ingredients to wealth building which I see pop up, again and again, is having multiple sources of income. Many will talk about side hustles, and others will talk about investing for income (for example, owning rental properties or dividend-paying stocks).

I'm curious as to what degree Bogleheads will invest money into building additional streams of income and what those streams might be.

And I know that 401(k)'s, IRA's, etc. are really great wealth-building tools. I'm thinking about this more in the form of diversifying income, should it be necessary. The more I funnel away now into those retirement accounts, the less I have available in a disaster-scenario 15 years from now, before retirement age (I'm 28). Or it might be a matter of whether or not I want to take a risk in my career, or be able to keep up with increased costs of living.

The way I see it, having additional streams of income offers security against disaster and opportunity for increased wealth. But I want to be really thoughtful and careful about how each dollar is spent.

Thoughts?


Thanks!

Aaron

P.S., Specific things I'm wondering if people invest in: Rental properties, REITs, Dividend stocks, Owning a business, Side hustle, Equities outside of retirement accounts
"Multiple Streams of Income" does sound like it came straight from an infomercial, but at its essence the concept makes sense. In the long run, diversification is a lot safer than having your eggs in a single basket. As has been pointed out, an S&P 500 fund is in fact 500 different streams of income.

You've already recognized that it is important to underspend your income and to invest the balance. During your working years, here is the problem with additional streams of income: you don't need the income, because it is going to run up your tax bill. What you really need is for that "extra" money to compound in a tax-efficient way. Here's where the retirement accounts come in: neither the money you put in nor its investment returns are taxed until you take it out 40 years from now; at which time it's grown into a much larger amount than if income and capital gains taxes had been paid during those 40 years. When you finally touch the account, it is taxed at ordinary rates, but you're now retired and likely to be in a lower tax bracket, so this is ok. The other possibility is that you still are in a high tax bracket because you've become quite wealthy, but that's a good problem to have compared to all the alternatives.

You've also recognized that there are times when it is good to have access to money which is outside a retirement account. An S&P 500 fund isn't a bad idea for taxable accounts either. On the one hand, you're "stuck" with the taxable 2% dividend yield which will grow with time. On the other hand, there is an additional 3% or so which stays in the 500 companies and gets reinvested and compounds inside those companies, so with time a big portion of your return still isn't taxed until you sell the stock. And, the tax on dividends is lower than the tax on labor income or interest income.

Warren Buffett's recommendation to the vast majority of people trying to put aside money for the long haul is to invest regularly, year in and year out, in a low-cost S&P 500 index fund and forget about it. This should be particularly suitable advice for people starting in their 20's or 30's. If I were in that age bracket today, that would probably constitute a big part of my portfolio.

It makes sense to invest both in taxable accounts and retirement accounts. The balance depends on your situation and your needs.

Congratulations on doing a lot of reading. With time, I'd up the quality of books a bit (although Richest Man in Babylon is a great intro for young teenagers). There is a lot of contradictory information out there but it is good to be exposed to all of it and to approach it critically. With time, you'll develop your own filters; hopefully they'll be good ones. Peter Lynch's first book was a formative one for me, anything Buffett writes is worth reading, anything Bogle writes is worth reading. Millionaire Next Door is a great book and a fun and easy read.

Best of luck on your investing adventures!

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by Jack FFR1846 » Wed Jun 19, 2019 10:00 am

rj342 wrote:
Wed Jun 19, 2019 9:05 am

Some questions:

How do you intercept enough junked electronics to be worthwhile? For that matter what is worthwile? ( $$ vs time input)

Who do you sell the boards/components to?

When I worked 13 years in electronics mfg in the 90s to early 2000s, as environmental regs toughened, the salvage market flipped, and where we formerly made a profit from selling our scrap electronics, solder dross, etc, it turned into an expense *paying* for hazardous waste disposal (heavy metals content).
Is that a factor at all?

Thanks.
I have an eScrap place not far from me. I sort and sell to them. PCBs (various grades), aluminum, brass, wire, motors, magnetics, connector ends, power adapters, batteries (lead acid and lithium ion), ICs, copper, complete laptops are how I generally sort. I find local is best and I only go there when I'm going to be driving by anyways. For example, last week, I was heading by, so filled my Fusion trunk with boxes of sorted stuff. Brought me $56. So nobody's going to get rich with this. A couple times a year, I load my trailer and bring steel to another yard. A load tends to bring in $100 or so on average. But again, I'll only do that when I'm going that way for something else.

If you don't have an eScrap place, Boardsort is pretty well known. I believe they're in Ohio and they have a website boardsort.com where you can ask questions and get prices. Shipping cost pretty much rules them out for me.

Where do I find this stuff? If you keep your eyes open, they're everywhere. Very common to be illegally dumped next to donation bins, out for trash....especially when people move, in industrial parks when businesses move and in town leave/take sections. Again, I don't go out of my way, ever. I don't take CRT stuff. I have seen others at the eScrap place dropping complete air conditioners, so I know they do take them.
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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by B. Wellington » Wed Jun 19, 2019 10:12 am

vtjon02 wrote:
Wed Jun 19, 2019 9:39 am
AaronScott wrote:
Wed Jun 19, 2019 7:01 am
Thanks for all the replies!

Just to be clear... It seems like most people here do NOT invest money into developing extra streams of income. And I'm not referring to savings/investments for retirement. I'm talking about now, during your working years, having income from a source other than your salary/wages.
OP, I am 39 years old and have a successful full-time career. It requires me to work an average of 45-50 hours per week, frequently travel and sacrifice a lot. I got this job by building up my human capital by going to a great college, getting a MBA, getting professional certifications (CPA, CFA) and working for the first 15 years at a series of grueling jobs. During this period I started out making very little and working 80 hour weeks during our 9 month busy season. I had to travel almost 40 weeks a year. It was tough, but the rewards are huge. I now earn over 500k per year in a low cost of living area. My wife took a similar path becoming a physician. She too had to sacrifice completely. She now earns a little more than I do. We have no debt and over $4M saved. We will likely downsize our careers in the next 5-10 years.

Then I will pursue multiple sources of income. I will collect investment earnings, have a part-time consulting gig, invest in real estate and who knows I might even drive for Uber/Lyft. My life will work for a non-profit doing more rewarding work at about 50% of her salary. We have both been extraordinarily lucky and are very privileged to have had the opportunities that we had. But we also worked our a$$es off.

This is all possible because we developed our human capital, then aggressively paid down debt and invested. At your age stay the course and invest in yourself.
There seems to be a trend here but is really not that surprising within this forum, however common threads tend to get lost in some of the noise...

...The Power of Focus...on education, jobs and career, hard work, business, Real Estate, saving, and investing etc.

OP, if it's "extra" (income) you seek, these posts are a great place to start...

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by Sandtrap » Wed Jun 19, 2019 10:26 am

KlangFool wrote:
Wed Jun 19, 2019 9:06 am
OP,

My mother has a favorite saying:

Even if gold fell from the sky, you will have to run faster than anyone else to catch it.

If there is money to be made, there will be competition. There is no long-term sustainable easy business. If you can make money, someone else will compete with you and do it too.

KlangFool
Your mother was wise.

From mother as well:
(she was very into this stuff)

1. If it was easy, everyone would be rich.
2. If making money needed extra smarts, then all the university professors would be wealthy.
3. Why is an investment professional, broker professional, finance seminar professional, selling books and services? If he was that smart, he'd be wealthy and not working at that job.
4. Money and wealth can't buy happiness, but it sure helps when life get's tough.
5. Ask yourself, if everyone working at the bank is surrounded by money, they must be good at it. If so, why are they working at the bank instead of wealthy on their own?
6. If you want to make someone worthless, give them money.

j
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rj342
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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by rj342 » Wed Jun 19, 2019 10:44 am

vtjon02 wrote:
Wed Jun 19, 2019 9:39 am
We have both been extraordinarily lucky and are very privileged to have had the opportunities that we had. But we also worked our a$$es off.
Regarding that last...

We are not remotely in your income/wealth position, and will have a modest but reasonably secure (knock on wood) retirement... so I do get tired of so often seeing discussions of retirement w apparent obligatory reference to "giving back".

I may choose to volunteer more... but I don't owe it to anyone. Nothing fell in our laps so to the extent we do have more than some will... I have no guilt about enjoying what we do have.

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by oilrig » Wed Jun 19, 2019 10:45 am

A few years ago I read an article or headline that said the average millionaire has 7 sources of income. For some reason that always stuck with me, and I made it my goal to have 7, or as many sources of income as I possibly could. Im 34 years old, and usually have around 4-5 different sources of income every month, in addition to my full-time job. This nets me anywhere from $1-3k/month in side income, which covers most of my living expenses and allows me to save the majority of my full-time salary ($125k/year).

My thinking is that I might as well take advantage and work/hustle as much as I can while I am young(ish) and single, because I am may not have the energy to do these side hustles when I am older and have a wife/kids. Also, the opportunities presented to me right now during a booming economy, may not be around in a few years during a recession or weaker economy.

I also do not like having to depend on my full-time job to pay my bills, because I work in a pretty volatile industry/career and job security isn't the best. If I get laid off or fired today, it feels great knowing that I wouldn't worry too much because my side hustles cover most of my living expenses. In my opinion, the more multiple streams of income the better!

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by KlangFool » Wed Jun 19, 2019 10:57 am

oilrig wrote:
Wed Jun 19, 2019 10:45 am
A few years ago I read an article or headline that said the average millionaire has 7 sources of income. For some reason that always stuck with me, and I made it my goal to have 7, or as many sources of income as I possibly could. Im 34 years old, and usually have around 4-5 different sources of income every month, in addition to my full-time job. This nets me anywhere from $1-3k/month in side income, which covers most of my living expenses and allows me to save the majority of my full-time salary ($125k/year).

My thinking is that I might as well take advantage and work/hustle as much as I can while I am young(ish) and single, because I am may not have the energy to do these side hustles when I am older and have a wife/kids. Also, the opportunities presented to me right now during a booming economy, may not be around in a few years during a recession or weaker economy.
oilrig,

I disagreed. In the successful case that I observed first-hand,

A) They only focused on one side hustle/work at a time.

B) They focused on a single side business that can scale up to replace their main income

My mother told me

There is a limit on how much you can earn with your own time. There is no limit on how much you can earn with your money, other people's money, and other people's time.

<< usually have around 4-5 different sources of income every month, in addition to my full-time job.>>

Pick a winner instead of spreading it around. Focus and execute.

KlangFool

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by A-Commoner » Wed Jun 19, 2019 10:59 am

Perhaps the question should be rephrased: if you lost your main source of income (eg your and your spouse’s jobs), do you have alternative income streams that can support you?

My wife’s and my Vanguard investment portfolio is our alternative income stream. Last year, our dividends from it came out to $50k. That pales in comparison to our combined 2 physician incomes, so if we both lost our jobs, we would have to live on $50k. But it can be done. We just have to live like medical students again.

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by oilrig » Wed Jun 19, 2019 11:11 am

KlangFool wrote:
Wed Jun 19, 2019 10:57 am
oilrig wrote:
Wed Jun 19, 2019 10:45 am
A few years ago I read an article or headline that said the average millionaire has 7 sources of income. For some reason that always stuck with me, and I made it my goal to have 7, or as many sources of income as I possibly could. Im 34 years old, and usually have around 4-5 different sources of income every month, in addition to my full-time job. This nets me anywhere from $1-3k/month in side income, which covers most of my living expenses and allows me to save the majority of my full-time salary ($125k/year).

My thinking is that I might as well take advantage and work/hustle as much as I can while I am young(ish) and single, because I am may not have the energy to do these side hustles when I am older and have a wife/kids. Also, the opportunities presented to me right now during a booming economy, may not be around in a few years during a recession or weaker economy.
oilrig,

I disagreed. In the successful case that I observed first-hand,

A) They only focused on one side hustle/work at a time.

B) They focused on a single side business that can scale up to replace their main income

My mother told me

There is a limit on how much you can earn with your own time. There is no limit on how much you can earn with your money, other people's money, and other people's time.

<< usually have around 4-5 different sources of income every month, in addition to my full-time job.>>

Pick a winner instead of spreading it around. Focus and execute.

KlangFool

KlangFool, different strokes for different folks. If I can make an extra $1-3k/month with relative ease/time, AND devote enough time/energy to progress in my full-time job, then I would be a fool to pass that up! The income I make on the side is more of a fun hobby to me, that also pays reasonably well. I've always enjoyed working side hustles, and it helps keep me busy to not go out and spend money! Its a win/win for me!

With my side hustles, I am able to save 75-100% of my full-time monthly income. Without the side hustles I would probably be saving around 30-40% of my full-time income and have to wait a year to get a 3% merit increase. I like being able to control my income and make more money per month if I want to, depending on how hard I work on the side.
Last edited by oilrig on Wed Jun 19, 2019 11:21 am, edited 1 time in total.

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by Tycoon » Wed Jun 19, 2019 11:15 am

Sandtrap wrote:
Wed Jun 19, 2019 10:26 am
KlangFool wrote:
Wed Jun 19, 2019 9:06 am
OP,

My mother has a favorite saying:

Even if gold fell from the sky, you will have to run faster than anyone else to catch it.

If there is money to be made, there will be competition. There is no long-term sustainable easy business. If you can make money, someone else will compete with you and do it too.

KlangFool
Your mother was wise.

From mother as well:
(she was very into this stuff)

1. If it was easy, everyone would be rich.
2. If making money needed extra smarts, then all the university professors would be wealthy.
3. Why is an investment professional, broker professional, finance seminar professional, selling books and services? If he was that smart, he'd be wealthy and not working at that job.
4. Money and wealth can't buy happiness, but it sure helps when life get's tough.
5. Ask yourself, if everyone working at the bank is surrounded by money, they must be good at it. If so, why are they working at the bank instead of wealthy on their own?
6. If you want to make someone worthless, give them money.

j
Your mother is also wise.
Emotionless, prognostication free investing. Ignoring the noise and economists since 1979. I see the world as it is; not how I wish it to be.

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LiveSimple
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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by LiveSimple » Wed Jun 19, 2019 11:31 am

Tycoon wrote:
Wed Jun 19, 2019 11:15 am
Sandtrap wrote:
Wed Jun 19, 2019 10:26 am
KlangFool wrote:
Wed Jun 19, 2019 9:06 am
OP,

My mother has a favorite saying:

Even if gold fell from the sky, you will have to run faster than anyone else to catch it.

If there is money to be made, there will be competition. There is no long-term sustainable easy business. If you can make money, someone else will compete with you and do it too.

KlangFool
Your mother was wise.

From mother as well:
(she was very into this stuff)

1. If it was easy, everyone would be rich.
2. If making money needed extra smarts, then all the university professors would be wealthy.
3. Why is an investment professional, broker professional, finance seminar professional, selling books and services? If he was that smart, he'd be wealthy and not working at that job.
4. Money and wealth can't buy happiness, but it sure helps when life get's tough.
5. Ask yourself, if everyone working at the bank is surrounded by money, they must be good at it. If so, why are they working at the bank instead of wealthy on their own?
6. If you want to make someone worthless, give them money.

j
Your mother is also wise.
Wonderful thoughts....appreciate you sharing with us.

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by GCD » Wed Jun 19, 2019 11:42 am

AlohaJoe wrote:
Tue Jun 18, 2019 8:51 pm
Go look at the list of the Top 100 richest people in the world and tell me that "multiple sources of income" was a key ingredient to any of their wealth building: It is not. Every single one of them became wealthy by having a single source of income.
Right. One of the things I agree with and have seen repeatedly mentioned here is that one is usually better off expending extra effort enhancing their skills in their primary profession rather than broadening themselves, aka spreading themselves too thin. Whatever energy you spend developing second income streams would be better expended growing your professional skills.

The exception to this is people who don't have a profession and who can't ply their "trade" more than a set number of hours per week. For instance, a garbageman. That guy can't be a garbageman 16 hours a day because the city won't pay him after 8 hours. He also doesn't have a real skillset than can be honed to make himself such a great garbageman that he could get a lot of raises or substantially increase his pay in some way. For that guy, I suppose a side hustle or other income stream is a rational thing.

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Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by KlangFool » Wed Jun 19, 2019 12:02 pm

oilrig wrote:
Wed Jun 19, 2019 11:11 am
KlangFool wrote:
Wed Jun 19, 2019 10:57 am
oilrig wrote:
Wed Jun 19, 2019 10:45 am
A few years ago I read an article or headline that said the average millionaire has 7 sources of income. For some reason that always stuck with me, and I made it my goal to have 7, or as many sources of income as I possibly could. Im 34 years old, and usually have around 4-5 different sources of income every month, in addition to my full-time job. This nets me anywhere from $1-3k/month in side income, which covers most of my living expenses and allows me to save the majority of my full-time salary ($125k/year).

My thinking is that I might as well take advantage and work/hustle as much as I can while I am young(ish) and single, because I am may not have the energy to do these side hustles when I am older and have a wife/kids. Also, the opportunities presented to me right now during a booming economy, may not be around in a few years during a recession or weaker economy.
oilrig,

I disagreed. In the successful case that I observed first-hand,

A) They only focused on one side hustle/work at a time.

B) They focused on a single side business that can scale up to replace their main income

My mother told me

There is a limit on how much you can earn with your own time. There is no limit on how much you can earn with your money, other people's money, and other people's time.

<< usually have around 4-5 different sources of income every month, in addition to my full-time job.>>

Pick a winner instead of spreading it around. Focus and execute.

KlangFool

KlangFool, different strokes for different folks. If I can make an extra $1-3k/month with relative ease/time, AND devote enough time/energy to progress in my full-time job, then I would be a fool to pass that up! The income I make on the side is more of a fun hobby to me, that also pays reasonably well. I've always enjoyed working side hustles, and it helps keep me busy to not go out and spend money! Its a win/win for me!

With my side hustles, I am able to save 75-100% of my full-time monthly income. Without the side hustles I would probably be saving around 30-40% of my full-time income and have to wait a year to get a 3% merit increase. I like being able to control my income and make more money per month if I want to, depending on how hard I work on the side.
oilrig,

Thanks for the clarification. Then, it was not a 100% business decision.

KlangFool

Jack FFR1846
Posts: 9732
Joined: Tue Dec 31, 2013 7:05 am

Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by Jack FFR1846 » Wed Jun 19, 2019 12:13 pm

GCD wrote:
Wed Jun 19, 2019 11:42 am
The exception to this is people who don't have a profession and who can't ply their "trade" more than a set number of hours per week. For instance, a garbageman. That guy can't be a garbageman 16 hours a day because the city won't pay him after 8 hours. He also doesn't have a real skillset than can be honed to make himself such a great garbageman that he could get a lot of raises or substantially increase his pay in some way. For that guy, I suppose a side hustle or other income stream is a rational thing.
A garbageman could make good money collecting eScrap. I'm sure some do.

:D
Bogle: Smart Beta is stupid

X528
Posts: 55
Joined: Fri Nov 30, 2018 8:51 am

Re: Investing in Multiple Streams of Income? (NOT get rich quick)

Post by X528 » Wed Jun 19, 2019 1:04 pm

KlangFool wrote:
Tue Jun 18, 2019 9:12 pm
OP,

What is wrong with the followings?

Earn, save, invest.

1) Earn enough so that you can save 1 year of expense every year.

2) Invest your saving

3) Buy a reasonable house to fix your housing expense = 40% to 50% of the inflation rate. Then, your personal inflation rate is lowered than the official inflation rate.

4) Do this for 15 to 20+ years. Then, your portfolio is 25 to 50 times your annual expense.

What else do you need?

KlangFool

"3) Buy a reasonable house to fix your housing expense = 40% to 50% of the inflation rate. Then, your personal inflation rate is lowered than the official inflation rate."

Can you elaborate on 3? I don't fully understand what you're saying here. I assume one is using a mortgage here, rather than paying the entire cost with cash. The mortgage loan payment should stay the same, regardless what the inflation rate is, but other costs (e.g., home insurance, taxes, etc.) can change in the total monthly payment including the mortgage payment.

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