Multiple Streams of Income: How to Generate a Lifetime of Unlimited Wealth (2nd Edition)
by Robert G. Allen

I’ve been running around like a blue-a***d fly getting ready for a spanking new job that I’m starting tomorrow but thought that I should put up my September 2006 BOTM in case some of you are starting to wonder whether last month’s was just a one-off 🙂

“The secret of the wealthy is not that they have more money but that they have more time freedom. Because most of their income streams are residual, they have more time to spend on anything they want.” 

What a great quote from Robert Allen. This book is a must-read for everyone whether employed, self-employed or un-employed. When I first read it almost one year ago, it totally changed my perception about wealth.

The author makes a very strong case for building your own pipeline of residual income, what he calls the money tree:

“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 pops open once or twice a day releasing crisp $100 bills…”

The author introduces the reader to the three “mountain ranges” of financial freedom: the real estate mountain, the investment mountain and the marketing mountain and the respective income streams (one chapter each) that flow from these mountains. Briefly, some of the key income streams worth highlighting here include:

Investment Mountain

1) Simple stock market strategies aka idiots’s approach to investing in the stock market. For those of you who want to invest but are very fearful of making losses, this chapter will really enlighten and take a load off. It covers index fund investing, dollar cost averaging, long term (i.e. buy and hold) vs short-term, and starting your investing NOW!

2) Accelerated stock strategies. In this chapter the author shares some of his stock picking strategies and tips on how to enhance your returns. Granted this is in a US context, but the principles apply here too

3) Options. More complex and risky area of stock investing, and probably more relevant to the US, unless you’re one of those into online options trading.

Real estate mountain

4) How and why to invest in real estate long-term. Robert Allen also wrote the best-seller Nothing Down, one of the “bibles” of real estate investing

5) Short-term investment in real estate – foreclosures and flippers. I still haven’t really got my head around this chapter 🙂 Sounds more for the very rich or the experts

Marketing mountain

6) Network marketing

7) Infopreneuring. Creating or acquiring intellectual property to earn royalties etc.  Success stories in this area include Bill Gates, Walt Disney, Anthony Robbins and why, Robert Allen of course!

8) Internet marketing. Affiliate programs and getting traffic to your website are some of the topics discussed. The author also wrote another book called “Multiple Streams of Internet Income” which is goes into more depth about this income stream. However, given the pace of changes in the internet marketing arena, most of these tips are probably a little outdated.

Phew! Sounds like a lot of income streams for just about anyone to get started on right? Granted not all are that easy to apply or practical for Malaysians, even but I see the true value of the book is in the simple message: why just depend on a linear income stream when you get earn passive income in so many other ways. I remember not being able to put the book down until I had read every last word. Part of this has to do with the author’s pacy and engaging style of writing. The book is amazingly easy to read, re-read and digest. He paints lots of mental pictures, helping the reader to visualize his or her own wealth-building process. 

To check it out on Amazon or to read more reviews, click here.