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If you are committed to living a Fiscally Sound life, you should know that you actually need to have 3 different income types (or income streams). This is a tactic that I learned from my friend and mentor, Dr. Matt Mannino, who is a neuroscience expert that helps people understand why they cannot attract money (so yes, a great guy to know!)
I had the privilege of speaking with Dr. Matt at the Inspired Millionaire Summit last month. It was a great event and people certainly left empowered and inspired, even those of us who spoke, because you can always learn from your peers. Dr. Matt shared that everyone should have the following three income sources.
Your “Pay My Bills” Income Stream – This is the one that most people stop with. They make enough money to pay their bills and possible have a vacation each year (or every other) and they think that’s what life is all about. No wonder people hate working… This is an income stream you should have at a minimum. If your current income stream is not paying your bills, then you need to adjust your budget or increase your income to fix that first (a blog post is forthcoming on that topic).
Your “Making Money” Income Stream – This would be an income stream where the return is only used to make more money by reinvesting it. For example, you might learn how to wholesale real estate (which typically doesn’t require money) and with that money that you earn, you would invest in other forms of real estate that do require money such as fix and flips or buy and hold deals. The idea here is that any returns on this income stream would not be used for vacations or long term savings even, but only to make more money.
Your “Purpose” Income Stream – This would be money that you make that fuels a cause that you are passionate about and aligns with your God given purpose. How cool is that to think of having an income stream that allows you to put your money where your heart is.
Hopefully this inspires you to think beyond just a budget for the purpose of paying bills and having extra. If you don’t yet have an income stream committed to making you more money, I encourage you to give it some thought and see what you come up with. You could certainly launch a new project / business for that purpose and you can always start small so there is little risk to your primary budget.