The Rich Have More Than One Source of Income


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One of the common denominators of most of the self-made millionaires in my Rich Habits Study was the fact that they had more than one source of income:

  • 65% had 3 or more streams of income.
  • 45% had 4 or more streams of income.
  • 29% had 5 or more streams of income.

Expanding and diversifying your sources of income enables you to weather the economic downturns that always occur. These downturns are not as severe to the wealthy as they are to those with one stream of income, typically their job.

The non-rich have “one pole in one pond” and when that single income stream is impacted by an economic downturn, the non-rich suffer financially.

Just look at the 2008/2009 Great Recession. The rich did fine.

The non-rich, however, did not. Many lost their jobs and the lives of their families were negatively impacted.

Some non-rich parents could not afford to pay tuition, room and board for their children, who were forced to change colleges or suspend their college education.

Some non-rich families could not pay their mortgage and were forced to sell their homes and move back with parents or family members.

One of my clients had to sell their boat, vacation home and move from New Jersey to Pennsylvania in order to survive financially.

When you have one revenue stream, you are not in control of your life. Outside forces, like a recession, can pull the rug out from underneath your feet, very quickly.

The rich have “several poles in many ponds” and they are able to draw income from other sources when one source is temporarily impaired.

Richard Branson started with one revenue stream, a magazine. But, because he desired to be rich, he reinvested his profits from the magazine into a second revenue stream – Virgin Records (Record Store). He then reinvested his profit from the record store into another new business – producing records (Virgin Atlantic). And the rest, as they say, is history. He now has over 400 revenue streams and is a billionaire.

Some of the additional streams the rich in my study invested in included:

  • Real estate rentals
  • REITs
  • Tenants-in-common real estate investments
  • Triple net leases
  • Stock market investments
  • Annuities
  • Seasonal real estate rentals (beach rentals, ski rentals, lakefront rentals)
  • Private equity investments
  • Part ownership in side businesses
  • Financing investments,
  • Ancillary product or services and
  • Royalties (patents, books, oil, timber, etc.).

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Thomas C. Corley About Thomas C. Corley

Tom Corley is a bestselling author, speaker, and media contributor for Business Insider, CNBC and a few other national media outlets.

His Rich Habits research has been read, viewed or heard by over 50 million people in 25 countries around the world.

Besides being an author, Tom is also a CPA, CFP, holds a master’s degree in taxation and is President of Cerefice and Company, a CPA firm in New Jersey.
Phone Number: 732-382-3800 Ext. 103.
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