Multiple Sources of Income (MSI) is the ultimate secret of the rich according to Bob Proctor. By tapping in to the universal law of compensation, you will understand more how money works. So if you want to get rich and become a millionaire, you need to understand this subject. Learn how to set up pipelines of flowing cash and not just rely on one source of income and your life will completely change.
What is MSI?
Multiple Sources of Income, also known as MSI, is the principle of having more than one income source which is generally used for creating more wealth. Most people only understand having one source of income, which is salary. The problem is, if that pipeline of cash stops flowing, then it’s a disaster. Setting up multiple pipelines of cash will allow you to thrive without having to worry of getting fired by your boss.
As of 2016, the top 1% of the world’s population control more than half of the world’s current wealth. How is that possible? You can guess it, it’s because these people have multiple sources of income. And guess what, you can become one of the top 1 percent! It all begins with a choice and taking the bold move. You see, these 1% people are no different than you, except that they took action and persisted.
I repeat, you can attract all the money you want by first declaring how much you need. Of course, money won’t appear in your wallet instantly, you must be willing to put in the effort to grow your pipelines. By sticking to the process, eventually you will start to see your wealth growing gradually but steadily. Just don’t give up until you realize your dreams, and the Universe will give you all the money that you need.
The Universal Law of Compensation
Once you’re ready to know how to make lots of money, congratulations. Now I’ll introduce to you a law called the Law of Compensation. I’ve learned this from Bob Proctor in one of his YouTube videos. Basically what it says is that your success with money is dependent on these three variables:
- The NEED for what you’re doing
- Your ABILITY to fulfill the need
- The DIFFICULTY in replacing you
Sounds interesting? To better understand this, I’ve embedded the YouTube video I was talking about. Also, it will further explain some of the concepts that I will discuss in the succeeding section.
Types of Income
So what are the common types of income? Given below are the types of income as stated in the video as well as examples which I got from threetypes.com. I’ve compiled both resources and turn it into the guide you’re about to see below.
- Earned Income – M1
This is the most basic type of income and is known by everyone as a job. Money made from this income is a result of working and providing something of value to another person. Normally it is determined based on the amount of time, effort, and results that a person provides. Examples of this include:
- Consulting Fee
While M1 is the easiest income to earn, it’s just what it is. You do work and you will earn money. However if you do not work, you won’t earn money at all. That is the only problem I see with considering M1 as your only source of income. Plus, you will lose a huge amount of control because it will go to the company and the boss you are working for.
- Portfolio Income – M2
It is also referred to as capital gains and is the concept of money making money. First off, you will start with an initial money investment and choose a type that you will work on. The objective here is to be able to grow your wealth and hopefully multiply it a lot of times. Therefore, your success will depend solely on your ability to understand the rules of the game. Examples of M2 include:
- Mutual Funds
- Buy & Sell Items
- Capital Gains on Real Estate
Just any kind of asset that goes up and down in value belongs to the M2 category of income. Be careful though because there is always risk in this kind of income, and it’s not always a bull economy. Like I said, if you don’t invest on your ability to earn M2 then you will most likely fail. But still, this income is way better than having just M1.
- Passive Income
Now this is the fun part and is perhaps the best source of income you can set up. M3 or passive income is money that you earn even without doing any effort. I believe the best advantage of passive income is the freedom and mobility that it gives you, which allows you to do the things that really matter. Examples of M3 are the following:
- Rent Income on Real Estate
- Business Income (one with systems in place)
- Dividends from Companies you Own
- Intellectual Property (Books, Patents or Music)
- Affiliate Marketing or Multi-Level Marketing (done on the Internet)
Obviously, the best investment of your money is through M3 (Passive Income). But you might not be able to start right away due to lack of money and knowledge. Worry not, in the next section I’ll teach you how you can get started with setting up MSI’s. I’ll provide the tips on how you can best acquire knowledge on this subject.
How to Set Up MSI’s
Now that you have prior knowledge of MSI, Law of Compensation, and the types of income, you can now begin your quest to financial freedom. Listed below are some practical things that you can do right now to start working on an MSI.
- Set Your Money Goals
How much money do you want to earn? How much time are you willing to invest in your goal per day? Make a commitment to follow your set goals, and eventually you will get to your destination. I recommend you multiply your goals ten times, but it’s all up to you. Goals exist to provide direction to a person’s life and it’s something that gives motivation.
- Work on Your Passion
Passion is very important in order to succeed. When you’re in a state that you feel detached from your surroundings and just literally consumed by the work that you do, it’s an indication that your passion is there. If you haven’t determined your passion yet, read my article on how to get started with it. I promise you, if you truly love something, it will never feel like work.
- Learn the Subject of Money
Learning all the types of income in the previous section requires financial knowledge, which can be acquired through financial education. That’s why it’s required for you to learn the subject if you want to set up multiple sources of income. To better convince you, I highly recommend reading Rich Dad Poor Dad by Robert Kiyosaki or Think and Grow Rich by Napoleon Hill.
- Focus on an Expertise
Let’s say your passion is about fitness, the first thing you need to do is to narrow it down to a more specific niche and dedicate yourself to becoming an expert at it. So you can go for either losing belly fat or teaching yoga exercises for women. While you might sacrifice some customers in the process, you will be able to focus on improving yourself within your niche, which I think is more important.
- Save Money for Setting up MSI’s
Generating M2 or M3 requires money, knowledge, and time for it to grow. Think of growing plants when you give it water, oxygen, and sunlight, then do it every day for a couple of months. That’s the analogy of how MSI works. But once the pipeline starts flowing with cash, you will benefit from it for a long period of time. Start saving money and invest it to either M2 or M3 type of income.
- If You Have Limited Resources, Start Online
The wonderful thing about the Internet is that it’s cheap to get started. Making money online has never been easier because there are hundreds of different opportunities to create MSI’s on the Internet. So if you’re kind of a computer guy with a Mac or PC at home, you should try finding income opportunities on the Internet. Now even shy type introverts won’t have an excuse with creating MSI’s!
- Scale Your Pipelines Up
Once your cash is growing, you should convert all your M1’s and M2’s into M3’s because it’s the best type of income that there is. M3 or passive income is the income that is capable of being scaled up to monumental amounts and is one that would free up your valuable time. This is the ultimate secret of the top 1% of the population who has more than half of the wealth of the world.
Start Practicing One MSI at a time
You can’t just set up MSI’s and expect that it would all gain profits. Some of them will thrive but some of them will die. Through experience, you’ll be able to find the right type of income that works for you. But right from the start, you can only focus at one. Do everything you can to learn all the subjects required in setting these income sources. Take the time to master one type of income at a time, and from that start scaling up.
At the end of Bob Proctor’s video, he told a story of an 18-plate spinner. The secret as it turns out is to first get started with one plate at a time. I believe that spinner must have broken hundreds of plates before he got to where he is now. I’m saying this to tell you that there is no such thing as overnight success and that you might fail in the process. Well, it’s perfectly okay to fail and make mistakes, that’s just basically how life works.
I hope you’ve enjoyed learning about MSI’s. Use this as your guide to creating your wealth and you will be successful. Have you set up your pipelines of income? If so, which type of income do you like? Leave your answers in the comments below and good luck with setting up your MSI’s.