Roger Hamilton on Streams of Income & Myths of Wealth...

If you’re looking to work smarter instead of harder in your business, learning always starts with unlearning - what ‘truths’ are you living by which are no longer ‘truths’? Here’s my Top 3 Modern Myths of Wealth about what we need to unlearn to grow our financial success today:

MYTH #1: Wealth Comes from Passive Income

MYTH - You can get wealthy by going into debt to buy assets that will give you passive income so you no longer have to work for a living.

TRUTH - You’ve just dug a hole, not a river! All income needs to be managed, which means you need to know how to manage a team and experts who can manage your portfolio of assets.

Yes, building assets that create cash flow is a critical part of building your wealth. But many people have been burned by stretching their resources to buy property or other assets in the hope that they will yield ongoing passive income, only to see the value of their assets drop, their cash flow go negative, and their credit ratings ruined. Why didn’t this happen to all the wealthiest people? The wealthiest people know all their assets—whether properties or business—need to be managed well. There’s nothing passive about it.

It might look like the apple farmer has “passive income” because his apple trees keep giving him apples, but it still takes time and expertise to nurture those trees. It’s the same with your assets: Choose assets with great care and factor in the true cost of choosing, managing, and selling your assets in your return.

Replace the myth of passive income with the reality of portfolio income, where each of your assets is part of a portfolio managed by a team. Monitor and maintain your portfolio and the return it is giving you.

MYTH #2: Wealth Comes from Multiple Streams of Income

MYTH: The more income streams you can start, the wealthier you will become.

TRUTH: Starting many streams at the same time is like trying to push many balls up a hill at the same time: You may get started, but you end up losing your focus and your time. Success comes from growing teams, not streams: multiple teams of income.

This myth is perhaps the most destructive when you’re starting out...

[Read the rest here (where you'll also find some promotional info on Roger's upcoming book and his courses - no, I don't have any affiliate association with any of these guys, by the way  :0)]