Well aside from the fact that both of these gentlemen are very very popular in their respective industries, they have one other thing in common. They both have MULTIPLE diverse income streams.
Jay-Z, the singer, has clothing, a production company, he manages other artists, has a nightclub and has cologne, candles, cell ringtones etc….
Warren Buffet, in addition to being the CEO of Berkshire Hathaway, owns companies like The Pampered Chef (a network marketing company), newspapers and many many many Walmart shares. So what does that tell you? He doesn’t look for opportunity in a single place.
Ok … but they have SO much money… that’s how they invest in all these things!
You are right but they certainly didn’t start out that way and frankly that’s HOW they became millionaires.
So what can you take from their example? Just one thing.. you need to diversify. In an economy like the one we are all currently living in… you need to look at a variety of income streams.
There are not enough hours in the day to get paid millions of dollars if what you do is bill by the hour. For example if you want to gross $100,000/year here is some REALLY basic math. Let’s assume you are willing to work 50 hours a week (that’s 8am-6pm Monday to Friday, no lunch, no sick days and not very realistic) and let’s say you take 3 weeks off a year so you work 49 weeks a year. That means you need to bill out 2450 hours in a year. That’s about $41/hour.. actually pretty reasonable but you have no life to attain that. That means there is NO time in the day for bills, doctors visits, kid pick ups, breaks, basically anything non billable etc… And really, isn’t that the whole point of working for yourself?
Also keep in mind that you are not paid when you don’t bill hours, so when will you do your taxes, office organization, accounting, bill paying or finding new clients etc…? Plus you’ll need to cover your own healthcare, insurance, and office supplies. Yikes! That $41/hour just became $20.
So let’s look at this more realistically… Let’s say you really work 8am-3pm Monday – Friday and that only 5 of those 7 hours are billable; the other 2 are prospecting, bill paying, errands etc.. If you billed 5 hours a day, 5 days a week for 49 weeks a year you are looking at a gross income of 1225 x $42 = $51,450. A nice salary but you are not winning the jackpot on that.
So think about this, what if you spend 2 weeks writing an e-book, which you could sell for $19 a piece and you sold 1000 copies in a year. That’s another $19,000 in income and the work took only 2 weeks costing you (using the same hours and billing rate above) $2100. It cost you nothing to print because it’s digital, and let’s assume you used free social media to “advertise”. Remember the time you spend on social media also costs you money so let’s assume you spend another $2100 of your time on that, you are still going to net about $15,000 for the book. Not too bad!
Now what if the book is not selling? What if the market is saturated? What if it takes 2 years to sell 1000 copies because the need/desire is just not there? Wouldn’t it be great to have income from a completely different source?
So here is my suggestion. Look at other interests, hobbies or clubs that bring you joy, is there an opportunity there? Are you an artist? Can you create something, advertise for free on a craft site and sell it? Could you create a higher priced product than your e-book (like an entire training course) and sell that? Could you do some presentations and charge for tickets? Think beyond your typical scope.
What I do is I work for a network marketing company on the side. Maybe that would work for you? Maybe not. It works for me because I am making money when I am not actually doing anything. Of course its takes an investment of time initially but not forever. That’s the beauty of it, and if it works for Warren Buffet, I am game.
The fact is that you need to find another income stream that is different. So drop your ego at the door and think outside of the box but keep in mind one thing. If you are trying to find another role that requires your time in exchange for money you will find there are not enough hours in the day. Look for opportunities where residual income is the name of the game. Think of a song writer.. they write the song one time but are paid whenever you hear it on the radio. That is residual income. That’s your key to joining the Warren Buffet, Jay-Z Club. Good Luck!