Welcome to part two of a brand new mini-series covering the rules for setting up and scaling recurring income streams. In this edition, I’m going to dive into some different asset classes and models that you can invest in for a recurring income.
Okay, so let’s get into it.
- Know the asset classes:
Rule number one is defining the asset classes that produce passive or recurring income so you can match them with the different income streams you’re looking to generate.
- Pick your income streams:
Okay, now you’ve defined what’s passive income and what is recurring income you must pick up to three different streams or assets to invest in. A lot of people try to invest in 20 different streams at once but get absolutely nowhere because they’re too overwhelmed. By selecting three you avoid spreading yourself too thin.
- Apply the 70/20/10 rule:
Over time I’ve developed my 70/20/10 rule to spend 70% of my time on my main income-generating asset class. 20% of time should be used on your secondary income stream, asset class or business model and lastly that leaves 10 % of your time for all of the rest.
Now, if you’ve got up to five different passive or recurring income streams on the go at once because you’re a bit more experienced or ambitious you can apply 70% of your time on the top two streams, 20% on the next two and 10% on the rest. The key is to ensure you do not divide your time equally between all five because if you were to work by the 20/20/20/20/20 rule everything would take too long and you would never get anywhere.
It’s also a myth that if you just focus all of your time on one thing and stay in your lane you’ll master it and get rich. No, most wealthy people I know do not stay in their lane, they’re in multiple lanes investing in numerous different income streams and asset classes. So, if you were to pick three and apply the 70/20/10 rule on real-estate (70%) personal brand (20%) and crypto (10%) you’re in three different asset classes and you’re managing your time so that you do not get overwhelmed and you’re not spread too thin.
- Set and forget:
Here’s a bit of realism, If you want recurring income, you need to set to forget, and you need to work hard enough not to have to work hard.
Why? because a lot of people want the baby without the labour pains, they want the asset, but none of the work. They want the easy shortcut and the lazy way out. Now, there is leverage that can be applied to make things easier and more productive but that is not the lazy way. There is a quicker way, but there’s not an unrealistic get-rich-quick way, it’s simple, you have to work hard enough not to have work hard.
You have to set to forget. You have to be consistent and persistent over weeks or months or years depending on the business model or asset class. So, just make sure that you’re realistic about that when investing in recurring income streams and you’re not buying into a fantasy.
- Systemise scaling:
Okay, number five. In order to scale an asset class that is generating a recurring income, you must put in place systems to manage scaling up. Otherwise in order to scale all you’ll be doing is working harder, harder, harder and longer, longer, longer.
- Repeat, repeat, repeat:
Once you find an asset class, income stream or business model that is successful and scalable you need to repeat the process. The key here is taking rule number five for systemising and apply it in line with the 70/20/10 rule to create multiple streams of income.
So, there we have it. Six rules for setting up recurring income then.
Next, you need to know all the asset classes to invest in before you can start picking the ones that are right for you.
Here’s a sneak peek, there are 18 different ones to dive into so don’t forget to check back in for part three of this bonus mini-series covering everything you need to know about setting up passive and recurring income generating streams.
If you want to learn the tools and techniques to build passive, recurring income to give creators, influencers & entrepreneurs more stable, continuous cashflow YOU control then sign up to my Recurring Income Summit by clicking here.