Multiple Streams of Income

How to Generate a Lifetime of Unlimited Wealth

Robert G. Allen

• Publisher: Wiley
• Year: 2011
• Print ISBN: 9780471714552, 9780471655787
• eBook ISBN: 9781118046128
• Edition: 2
• Topic: Business
• Subtopic: Real Estate
• Index: Business

In Multiple Streams of Income, bestselling author Robert Allen presents ten revolutionary new methods for generating over $100, 000 a year—on a part-time basis, working from your home, using little or none of your own money. For this book, Allen researched hundreds of income-producing opportunities and narrowed them down to ten surefire moneymakers anyone can profit from. Thisrevised edition includesa new chapter ona cutting-edge investing technique.

CHAPTER 1

Easy Money: Financial Freedom on a Dollar a Day

The greatest mathematical discovery of all time is compound interest.

ALBERT EINSTEIN

It all starts with a single unit of money.

In the United States, Canada, Australia, Hong Kong, and New Zealand, it’s the dollar. In Great Britain, it’s the pound. In France and Switzerland, it’s the franc. In Germany, it’s the mark. In Japan, the yen.

Wherever you are, reach into your wallet or purse and dig out some of your own paper currency and examine it. Rub it between your fingers. Feel the texture. Bring it to your nose. Does money smell? Examine the images. Notice the serial numbers. Turn it over. Notice the strange symbols. What do they mean? Imagine that you’re looking at it through a microscope. Read every single word. This simple piece of paper doesn’t appear to be worth much. Inflation erodes its value daily. So what if you waste it or lose it or throw it away.

But wait a minute. Can this ordinary piece of paper money be worth more than meets the eye? Could it be a magic ticket to a more abundant life of anywhere/anytime/anything you want? One thing’s sure: How people feel about these silly pieces of paper makes a huge difference in how they enjoy life’s great banquet of prosperity.

When you’ve finished reading this chapter, I promise that you’ll never think of money in the same way again. Ever. You see, prosperous people don’t think of money as just colored pieces of paper adorned with pictures of famous dead people. They imagine it as seeds—money seeds—with the power to grow into money trees, bearing fruit to fulfill every one of their dreams. And they are absolutely right.

WIT & WISDOM

Fear begins to melt when you take action toward a goal you really want.

RGA

Every dollar bill is a money seed. Just as a tiny acorn contains the power to grow into a mighty oak tree, each dollar bill has the power to grow into a mighty money tree. You can grow one of these money trees on as little as a dollar a day. Could you afford that?

If you follow the advice in this book, you will soon have your own majestic money tree, growing right in the center of your future dream home. Imagine that! Branches of your money tree are growing along the ceiling and spreading into every room of the house. Every few feet along each branch are ripening money fruits that pop open once or twice a day releasing crisp $100 bills. As the $100 bills fall from the tree, they float into money baskets throughout the house. All night long you hear the pop, pop, pop of the ripening money fruits. You might think the sound would keep you awake, but it’s a very soothing sound. Your money tree produces fruit 24 hours a day. While you sleep. While you work. While you play. While you eat. It never stops. An endless stream of cash flow. Whenever you need money, you just take whatever you want from one of the baskets. Get the picture?

If you destroy an acorn, the potential oak tree inside also dies. Every time you waste one of those silly pieces of paper money, it’s just like destroying a potential money tree. That’s why it is so important to preserve and protect each of these money seeds. (See Figure 1.1.)

So how much is one of those seeds really worth? That depends on how long you let it grow and at what rate of growth. Let’s suppose you take a single dollar and put it into a special bank account that will let the dollar grow, untouched by taxes and fees. How long will it take for this single dollar bill to grow into $1 million?

That depends on the interest rate that the bank account pays. If it’s like ordinary bank accounts, then it’s going to take a long, long time. Table 1.1 shows you how long it takes for a single dollar bill to grow into $1 million at various interest rates.

TABLE 1.1 A Single Dollar Grows into $1 Million

Interest Rate	Time in Years
0%	Never
3%	468
5%	284
10%	145
15%	99
20%	75

FIGURE 1.1 Your money tree.

As you can see, at bank rates of 3 percent it will take 468 years for a single dollar bill to grow into $1 million. What? Not planning on living 468 years? Relax. We’re not done with that dollar bill yet. We’ve got to supercharge it. How can we do this? Rather than just planting one money seed, could you plant them more often? Could you afford to put away a dollar a day? Thirty bucks a month! You can do that.

Table 1.2 shows the number of years it takes for a dollar a day to grow into $1 million at various interest rates. Wow! A dollar a day becomes $1 million in the span of a normal lifetime.

Suppose you’d invested a dollar a day starting on the day you were born. Table 1.3 shows what you’d have at age 66. A dollar a day grows into $1 billion by the normal retirement age! That’s a whole forest of money trees. You’re Ross Perot in embryo! And what makes this happen? The power of compound interest makes a few dollars a day grow into enormous sums of money. Einstein himself said, “The most powerful invention of man is compound interest.”

TABLE 1.2 A Dollar a Day Grows into $1 Million

Interest Rate	Time in Years
3%	147
5%	100
10%	56
15%	40
20%	32

TABLE 1.3 A Dollar a Day Compounded at Various Rates for 66 Years

Interest Rate	Cumulative Savings
0%	$24,000
3%	$77,000
5%	$193,000
10%	$2.7 million
15%	$50 million
20%	$1 billion

But suppose you don’t want to wait for 66 years. Okay, there’s another way to speed up the process. Could you plant two or three seeds a day? Or five? Or ten? What does that do? Well, let’s cut right to the chase. If you put away 10 lousy bucks a day and put it in the right mutual funds or stocks or real estate and let the clock tick at 20 percent, you’re a millionaire in just 20 years! (Pop, pop, pop, pop.) Excited yet?

Now, I can hear the skeptics saying, “No one can sustain a 20 percent rate of growth for 20 consecutive years. It’s not possible!” Well, Warren Buffett, the stock market genius, was able to do it for over 40 consecutive years. When you’ve finished reading this book, you’ll know that it’s not only possible for you, but entirely within the reach of anyone with discipline and a few financial skills. You don’t have to be a financial genius. You don’t have to own a big company. You can do it from your kitchen table using the money that you’re now foolishly thro...

Table of contents

• Praise
• Title Page
• Copyright Page
• PREFACE
• Acknowledgments
• Introduction
• CHAPTER 1 - Easy Money: Financial Freedom on a Dollar a Day
• CHAPTER 2 - The 10-Minute Millionaire
• CHAPTER 3 - The Money Tree Formula: How to Create Lifelong Streams of Cash Flow
• CHAPTER 4 - The Mountain Range of Financial Freedom: The Three Great Money Mountains
• CHAPTER 5 - YOUR FIRST STREAM Success in the Stock Market—Investing for Total Idiots
• CHAPTER 6 - YOUR SECOND STREAM
• CHAPTER 7 - YOUR THIRD STREAM
• CHAPTER 8 - YOUR FOURTH STREAM
• CHAPTER 9 - YOUR FIFTH STREAM
• CHAPTER 10 - REAL ESTATE SUPERCHARGER
• CHAPTER 11 - YOUR SIXTH STREAM
• CHAPTER 12 - YOUR SEVENTH STREAM
• CHAPTER 13 - YOUR EIGHTH STREAM
• CHAPTER 14 - YOUR NINTH STREAM
• CHAPTER 15 - YOUR TENTH STREAM
• CHAPTER 16 - Financial Fortress Stategies: Shielding Your Multiple Streams of Income
• CHAPTER 17 - Balancing Act: Getting Your Act Together
• CHAPTER 18 - Share It: Leaving a Legacy That Outlives You
• INDEX