Paycheck Addiction & Multiple Streams of Income

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Do you stay at your job or J.O.B simply because they are paying you to stay there? Pretend money doesn’t exist for a moment and ask yourself, if they were not paying me, would I still be working here? Did you know that most wealthy people are so satisfied with what they do, that they would probably still be working if they didn’t get paid. Unfortunately for most of us, the thought of working without a paycheck can be a distressing one. I remember reading the book “Rich Dad, Poor Dad” and there is a part in the book where the 2 boys are in cleaning up the shop for the Rich Dad. They both ask what they are getting paid, and the Rich Dad replies nothing, not today anyways. You see, he wasn’t trying to punish the boys. He was trying to prove a point, that you cannot ever become rich, if you only work with a mindset that you must get paid before you will work.

I spent my first 6 years in the workforce primarily working for myself first as an actor, than a musician, during this time I also had my own auto wholesale business, and than I started a record label. After declaring bankruptcy at the ripe young age of 27, I spent the next several years working for others. This was not necessarily by choice, but out of fear of losing everything and having to start all over again. But I also loved the idea of getting a regular paycheck. It was nice to wake up in the morning and know that I was going to get paid no matter what. However, it was funny how I watched all my business owner friends grow rich over this time and I kind of just stayed the same. My bank account grew a little bit, but my paychecks stayed about the same. And with inflation, after close to 10 years I was no better off than I was when I went bankrupt 10 years earlier. Working for someone is actually a faulse sense of security.

The moral of the story is we have been sold a lie from our parents, grandparents, siblings, and friends. If you get an education, work hard, and you stay at the same company, and virtually earn the same amount of money every year, you will be able to retire with a nice pension some day. The reality is most people by the age of 65 are broke, dead, or dependent on others. That is about 95%. Would you put all your money in a stock if you knew that there was a 5% chance it would payoff, but a 95% chance it wouldn’t? This is what you are doing when you work for others. you are taking a 95% risk that one day your employer will take care of you.

I currently have 5 streams of income, 6 if you count my wife when she works. If I lose one income stream it costs me about 20%. Not exciting, but not a big deal when you look at the big picture. If you lose your job, and that is your only income stream, than you just lost a 100% of all of your income. Imagine having to go from $5000 or $10000 a month to $0. It might take you 3 to 6 months just to replace that income, in a recession probably a year. I hope you have at least 3 to 6 months reserve on hand if you are working for a paycheck? I don’t know about you, but I would much rather have multiple streams of income than 1. I also feel more confident in myself, as I don’t really have to lose sleep if I do get a pink slip, as I am not dependent on 1 employer for my happiness. If you want to become self sufficient and either work as an independent contractor or start your own business.

happywheels