A picture can be worth a thousand words but I will sum this picture up in two words, income streams.

If you have read The Cashflow Quadrant, then you know there are 4 types of incomes.  There are employees and self-employed which makes up 95 percent of all the incomes.  The remaining 5 percent are business owners and investors.

Primary Income Stream

My primary income stream comes from my employment.  I am currently in the process of developing my skills to create an opportunity to secure a skilled position which is in demand, IT (Information Technology). 

This will provide me with an opportunity to create a short-term career.  The reason why I say short-term is I do not plan to work until I am dead.  As a skilled employee, I would be earning more income than I am making now. 

Supplemental Income Streams

All businesses and investments exists to meet a demand created by people.  

Business

Instead of working a second part time job as I have in the past, I am now working on creating supplemental income through business and investment.  Building this website is a business because of revenue generated through advertising and affiliate sales. 

It will take a while to build this website into a viable income stream as I learn what works for me and what does not.  In a sense, it is still a form of self-employment because I am working for myself.  In the longer run, it will give me the skills I need to become a business owner.

Investments

As an investor, I do have my investment portfolio which is tied into the stock market.  Due to the unpredictable nature of the stock market,  I need to create additional investment opportunities that is not dependent on the stock market.

I recently started micro-lending through Prosper, which has been profitable so far but still carries a risk due to human nature.  While Prosper offers an opportunity to create an income, it is still a high-risk investment equivalent to the stock market.

Real Estate Investment 

REI (for short) is one area where I plan to invest in the near future.  There are many ways to invest in real estate depending on the investor’s goals and time-frame.  REI is a means of generating income and/or assets.

As long as there is land, there will always be real estate property to invest in. Oil may run out, gold may run out, but the land will always be there.  As long as land can be purchased, anyone can develop a means of generating income from the land.

Rental Property Income Stream

As long as there is a demand for rental housing, there will always be renters.  In order to meed the demand, it requires two parts, the land and the property on it.  Just like any business, after all the expenses associated with the land and the property is paid, the income left over goes into the property owner’s pocket.

I can list 4 reasons why I am pursuing this income stream. 

• Less work for more income

• Rental properties are assets

• Rental income pays expenses and taxes

• Rental properties has the potential to appreciate in value

Income will always exists as long as the theory of money is always in practice.  As long as there is an income, there is always going to be different streams of income.  While I have a bigger plan in mind, it is time for me to start putting my plans down on paper, or in this case, on my website.  By combining my energy and focus into the four major parts of my life, personal finance, business, real estate, and travel, I can begin to start building my assets and additional income streams.