When I first took an interest in personal finance I became obsessed with the idea of building up multiple streams of income. Diversifying my income just seemed like an awesome goal to have – not only because it provided income protection, but because it could provide income increases too.
At first I was slightly confused on the whole income diversity thing. I thought investing in assets like dividend stocks or saving up to buy rental properties was where it was going to be at for me. Then when I starter tinkering around online I knew I had so many more options. The problem was, even though I knew it was possible to build up income it still felt like a far-fetched goal.
Over the past two years I’ve gotten much better. However, it hasn’t been until the past few months where I’ve really been able to make accelerated progress. I owe this to the mastery principle which I learned about in Peter Voogd’s book 6 Months to 6 Figures. (This is now my all-time favorite book. I’ll admit I’m slightly obsessed with it.)
Here’s how you can use the mastery principle to build multiple streams of income.
Step 1: Choose Your Income Stream
Your first step is picking the income stream you want to build and getting super clear on it. For me, this was what I considered my “side hustle” income which I want to grow to a consistent $2,000 per month.
Pick whatever income stream you’ve been working on or on you want to grow. (Here’s a list of 50 Ways to Make Money Side Hustling.) You can even pick investment income. Do whatever feels right for YOU.
Decide what it will be and what monetary amount you want to tie to it.
Step 2: Make the Plan and Master the Habits – One by One
Now comes the important part – mastering the habit.
If you picked an investment idea like creating an income portfolio then you can actually automate a portion of this habit and move on. For instance, let’s say that you’ve already picked your investment and timeframe. Now just need to calculate how much money you should be putting away on a monthly basis and automate it. That’s pretty easy.
What’s not easy, however, is what most people will be doing and that is working on active income streams.
Let’s say the active income stream you’re working on is building up your side photography business to $2,000 per month. One of your biggest challenges is going to be finding new clients on a consistent basis. So what do you do?
First, you get crystal clear on the how you’re going to find the new clients. You might read up on business photography blogs or ask fellow photographers their biggest secret for bringing in new clients. Let’s pretend their answer is through Facebook.
You are now going to MASTER getting clients on Facebook. You’re going to experiment until you find what works and then you are going to repeat this strategy every single day until it becomes as natural as eating lunch.
Step 3: Work on This Goal Until Complete
Once you have the Facebook strategy mastered you can move on to your next goal which could be getting higher rates, finding clients through a new medium, increasing your income, or something entirely different.
You could also work toward outsourcing some of your work which would then mean you’d have a semi-passive income stream and could focus on something else.
Why Does the Mastery Principle Work?
We live in a society full of instant gratification. It’s easy to try something for a day, assume it doesn’t work, and move on.
That’s not how life really works.
To really build up your income streams you need to master the habits that will get you there. It’s going to take time and a lot of hard work but if you can become a master of your habits you’ll be able to build up multiple income streams that’ll move you to your financial goals faster.
And the best part is that once you create a habit it no longer feels like hard work. Earning extra income will feel as natural to you as breathing air.
Have you used the mastery habit to build new income streams?