Multiple income streams has become more possible than ever before in the digital age. For me, having multiple passive income streams is a goal. But achieving multiple active income streams wouldn't be bad at all. With the help of automation, the journey from active to passive can be explored.
A single income stream, no matter how big it is poses a significant risk. In the event of any unforeseen circumstance, it can be gone and one is left with no income stream for the time being. I've experienced it time and again, the feeling of being at a standstill is frustrating to me.
Having diversified income streams offers a better trajectory when unforeseen circumstances occur. Cash flow keeps coming in, the momentum continues while we figure it out along the way. No standstill, just a bump in the road.
Relatively speaking, many people are pursuing a diversified income stream with the help of the internet. One of the main reasons being that a single income stream hardly pays the bills nowadays.
So people are trying out other ways to make money such as starting an online business or side hustle.
Skills, Arbitrage And Ecosystems
I feel like nothing much has changed in terms of providing value or making money principles that apply in the real world to not be relevant in the digital world.
I used to have this impression that there's a magical formula to unlock all the possibilities in the digital realm. I searched at many places and never found it.
The reality is that such things don't exists. We have to put in the work to acquire skills, translate them into value and get rewarded for it.
Putting in the work is unavoidable. But it becomes worthwhile when we understand the arbitrage opportunities that the digital world presents. Traditionally, arbitrage is profiting from the difference in prices between markets. Here, arbitrage means profiting from the globalized nature of the internet.
What I mean by that is our work can be valued differently in different locations. An artist in Cape Verde may find her work under appreciated and with less value in her home country. But well appreciated and with more value in France, Australia or USA.
She might not be able to be at those places physically but she can get there virtually and present her creative work. Once she has acquired the relevant skills, she can arbitrage the value of her work across the globe.
This is made possible by the platforms and ecosystems build on the internet. Ecosystems help in distributing our work through creating a bridge that connects several markets in one place. They make it easier to build income streams from the different arbitrage opportunities.
A Big Picture
This is just a rough outline of building an income stream in the digital age.
I sometimes see it as a giant alchemy lab(the digital world) in which we're experimenting with different ingredients(skills) to create formulae(value systems) that can be cooked and transformed into the philosopher's stone(wealth).
For many people, the main driving force on pursuing multiple income streams isn't usually for a diversified income stream. However, this often becomes a natural effect of it.
I see the big picture as the opportunity to engage in different activities that can bring various good effects. One action can give us multiple desired results.
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