Develop and Manage Multiple Streams of Income

Too many individuals, professionals and families consider the employment-related income as their primary if not only source of income. In fact there are three fundamental sources of income which - when managed properly - can yield long-term financial stability.

Earned Income: Yes, this is your "paycheck" from your job or profession.

Portfolio Income: Income generated by your financial portfolio. This includes dividend income from stocks, distributions from mutual funds, interest income - typically from cash accounts or money market funds and bond yields.

Passive Income: Income generated by rental real estate properties, franchise businesses which you may own yet have hired someone else to manage and Internet-based businesses (whether affiliate marketing programs, Internet advertising, etc.). Think of passive income as providing you with a medium-long term annuity income.

Given the high unemployment rates in the US and other developed countries in 2008-2009 most people are fixated on their "earned income" alone. In fact, now may be the time to more proactively manage your portfolio-investment income and seriously considered pursuing one or more "passive income" opportunities. Here is an article from the Motley Fool that may offer some initial ideas.