Robert Allen "Multiple Sources of Income" wrote for the most ordinary people who want to gain financial independence. The book is written in a simple and understandable language, but you still have to understand the essence. It should be noted that many readers around the world thank the author for such a useful and practical book. Let's try to briefly deal with the brilliant ideas of R. Allen.
A bit about the author
Today, Robert Allen is a well-known and sought-after financial consultant worldwide. His books are read by millions of people. Many of his creations have survived more than one edition. The success of the author is regularly increasing, as each new book becomes an absolute bestseller. R. Allen is invited to various TV shows, where he not only shares his wealth of experience, but also talks a little about himself. He publishes many of his articles in leading English-language journals. Over the past 20 years, he has conducted thousands of seminars on financial planning and well-being.
Who is the book for?
I would like to note that the book by Robert Allen “Multiple Sources of Income” should be read first of all to those who are interested in investment issues. Of course, the issues discussed in the book will be useful to absolutely everyone. Modern business consultants advise beginners to start by reading this particular book. It will provide an understanding of the basics, but you should not consider it a textbook on investing. The main feature of the book is a clear focus on practice.
Why aren't all people rich?
This is one of the questions the author asks readers. He explains that many people in their entire lives come in contact with about the same amount of money. At the same time, someone becomes fabulously rich, while someone is left with nothing. What is the problem? It is that some people simply do not have knowledge of how to handle money properly. Those units who are interested in this and try to learn important rules achieve much greater financial well-being. “Multiple Sources of Income” invite readers to learn about the basic money handling skills that need to be used in everyday life.
Value
The main skill that the author promotes is the ability to handle money correctly. How to learn this, he tells in the book. R. Allen emphasizes that you should not treat money as a simple means of payment, because their capabilities are much greater. The first principle assumes the value of money. It is very important to value and understand their capabilities. Money is not only a means of calculation, it is, figuratively speaking, a grain that needs to be planted correctly. The book "Multiple Sources of Income" talks about how the correct investment of money and the compound interest formula can provide a person with a decent existence. However, in order to invest money, they must first be accumulated. This will help the ability to value money. It is very important to understand that the budget should be allocated accurately and in advance, but you should have some funds for unforeseen situations. If you manage money properly, appreciating it, you can accumulate the necessary amount in a short time, which will begin to make a profit in the future.
Control
Read Allen's book "Multiple Sources of Income" should be and those who have difficulty saving money and their proper distribution. The important advice that the author gives is that you need to keep a regular cash account.This simple action will avoid unnecessary expenses, draw up a cost plan and analyze excess costs. R. Allen pays particular attention to the issue of the relationship of rich people to money. In fact, the opinion that rich people buy everything they want is completely thoughtless and impulsive - a stereotype. Of course, billionaires can afford it, but just rich, wealthy people do otherwise. They plan their budget, trying to buy quality items at the lowest price. The author points out that a wide planning horizon can significantly reduce costs. This can be verified elementarily. It is enough to keep at least a month simple accounting of funds, buying only those goods that are necessary. You need to purchase them in the most profitable stores, taking into account stocks and sales.
Saving
In his book, Multiple Sources of Income, Robert Allen pays great attention to the issue of savings. This is really a very voluminous topic. If you master the art of saving, you can achieve significant heights. The author offers two ways to save money. The first is that you need to save 10% of all revenues. This method is really rational and very popular. Thus, a person learns to plan their expenses taking into account 10%, which cannot be taken into account. Moreover, you can simply activate such a function on a payroll card. Then the removal of 10% will occur automatically.
The second way is to reduce costs by expanding the planning horizon. Saved money must be deposited in a bank account. In no case should you store them “under the pillow”, since then the temptation to spend money on something “very necessary” will be much more. The author emphasizes that saving money is much easier than making money.
Income
R. Allen "Multiple Sources of Income" wrote in plain language. If the text comes across incomprehensible definitions, the author gives them clear explanations. The book tells that the secret of people's wealth is not that they have a lot of money - it is that they can create sources of residual or passive income for themselves. This allows you to free up time for basic activities. Moreover, the situations are different: you can get sick, go on vacation, go away on important issues. Despite possible circumstances, passive income will still be. The author criticizes the linear approach to making money and compares it with the movement on the escalator, which moves in the opposite direction. To earn more money, a person needs to work harder or more productively. In any case, this means that more effort is needed to get a greater result. But even with this, the extra money will still decrease steadily due to higher tax rates, intensified inflationary processes, etc.
The author compares the receipt of passive income in the book "Multiple Sources of Income" with the movement along a rising escalator. While the person is just standing, the escalator itself lifts it up.
9 important criteria
The book "Multiple Sources of Income" offers readers 9 basic criteria according to which it is worth starting your own business.
- When creating your own business there should be two sources of income. It is desirable that one of them is already residual. It is necessary to analyze the potential of the planned enterprise, as well as the ability to create new sources of income on its basis.
- The quality of the products or services that you will sell is important. This will attract buyers and new customers who will trust the rave reviews of their friends and colleagues. At the initial stage, it is important to remember a reasonable price.
- You must try to get by with a minimum of personal investment.
- It is advisable to work without hired personnel.This will help to avoid various legal proceedings, salary expenses, etc. If necessary, it is better to use the services of specialists once.
- Consider profitability. Do not create a business for his own sake.
- Do everything so that the maximum income is residual.
- Determine if your idea meets the modern world and its requirements.
- Goods or services should be in demand by the largest possible audience.
- Attitude to business. It is very important to value and love your job, because then it will bring not only great income, but also joy. It will be she who will motivate you for further development.
Businessmen
In the book “Multiple Sources of Income," the author identifies 4 types of entrepreneurs.
- Intraprener - one that knows how to communicate with people, lead them along, indicate the right path.
- An extrapreneur - one who thinks creatively can generate fresh ideas.
- Infoprener - a person who knows how to work with complex information, convey it to staff.
- An autoprener is an entrepreneur who can think analytically, invest correctly and see his own profit.
To create a profitable business, you need to develop yourself in all 4 directions.
The book "Multiple Sources of Income", the contents of which we examined above, is a high-quality and comprehensive guide to action for those who wish, but do not know how.