Praise for Multiple Streams of Income

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3 Praise for Multiple Streams of Income Multiple Streams of Income is a smart, instructional read for anyone just beginning, or well on their way to financial freedom. You can t go wrong with this book. It s right on target. Michael Gerber Founder and Chairman, The E-Myth Academy Reading this book is in itself a transforming experience. The financial principles are as sound as the Rock of Gibraltar and are explained with such clarity you will never forget them. You get inside the mind of one of the great entrepreneurial thinkers of our time and see just how he turns ideas into profits. Few successful multimillionaires are also successful at writing books that clearly explain how others can succeed. As a teacher with an abundance of brilliantly organized, fascinatingly relevant lessons on how to create wealth, Robert Allen is unsurpassed. Scott DeGarmo Former Editor in Chief and Publisher, Success Magazine Twenty years ago, Robert Allen showed us how to get rich in real estate with no money down. Now, he shows us exactly how to become financially independent in the twenty-first century economy by developing multiple streams of income. This is a great book. Every working person in America could benefit from reading it. Michael B. O Higgins Financial Advisor Author, Beating the Dow Robert Allen s book, Multiple Streams of Income, is provocative and should be read cover to cover by everybody from the entrepreneurial or investing novice to the most experienced and seasoned of us. It will be difficult to come away without new, profitable information, but for many, just the kick in the butt to be more aggressive in diversifying could prove very valuable. Dan S. Kennedy Author, How to Succeed in Business by Breaking ALL the Rules The information contained in the first paragraph of page 283 alone is worth 100 times the price of this book. Gary Halbert Author, The International Gary Halbert Letter This book promises multiple streams of income but actually delivers mulitple streams of mountains of income. I am astounded by the abundance of wisdom in every chapter enjoyable quotations, easy-to-understand graphs, simple rules to follow, websites to check for free, and references to others who have used these proven systems successfully. This book will truly guide ordinary people to create and keep multiple streams of lifetime income. Bravo, Bob. You have done it again. You are the financial mentor to the world s aspiring millions. Raymond Aaron Author, Vast Profits for the 1990 s

4 Bob Allen has done it again with his new book, Multiple Streams of Income. It s the best treasure trove of multiple ways to make money, save money and protect money that I have ever seen. If you can t make money with this book, check your pulse. You re dead. Larry Williams Author, How to Outfox the Foxes Bob Allen has the unique ability to teach proven moneymaking systems while motivating the student to take action. I have personally seen Bob s information transform thousands of lives for the better including my own. In the past 10 years I ve purchased over 800 properties using the information you ll find in this book. I highly recommend his books to my own students. I m sure he has another best-seller in Multiple Streams of Income. John R. Burley Author, Automatic Wealth audio program Robert Allen is an information alchemist. He has the ability to distill complex information into simple formulas that get results. In the 13 years that I ve known him and worked with him, I ve witnessed how his teachings have directly compelled countless people to create substantial wealth and happiness in their lives. He is one of the great money mentors of our time. Donald Wolfe, M.A. The Vision Coach C.E.O. Consultant and Corporate Trainer I have tremendous respect for Robert Allen s ability to teach people how to make a lot of money. His latest book, Multiple Streams of Income, contains a wealth of information. Robert T. Kiyosaki Author, Rich Dad, Poor Dad Chairman, Cash Flow Technologies Very few people have influenced my life more than Robert Allen and one of the most profitable things I learned from him was the importance of multiple streams of income. This book will change your life. Read it and then give it to your children. Ron LeGrand Author, Fast Cash with Quick Turn Real Estate and Cash Flow Generator Bob Allen understands how to get other people s efforts, assets, and money working hard for you. In his new book, Multiple Streams of Income, he shows you 10 powerful ways to create income streams that anyone can use successfully to create financial freedom and security. Jay Abraham Author, Getting Everything You Can Out of All You ve Got

5 $ Multiple Streams of Income Second Edition ROBERT G. ALLEN John Wiley & Sons, Inc.

6 Copyright 2000, 2004, 2005 by Robert G. Allen. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) , fax (978) , or on the web at Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) , fax (201) Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. The publisher is not engaged in rendering professional services, and you should consult a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. For general information on our other products and services please contact our Customer Care Department within the United States at (800) , outside the United States at (317) or fax (317) Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. For more information about Wiley products, visit our web site at Library of Congress Cataloging-in-Publication Data: Allen, Robert G. Multiple streams of income / Robert G. Allen. 2nd ed. p. cm. Includes index. ISBN (cloth); (pbk.) 1. Money. 2. Income. 3. Finance, Personal. I. Title. HG221.A '01 dc Printed in the United States of America

7 $ CONTENTS PREFACE ACKNOWLEDGMENTS v vii INTRODUCTION CHAPTER 1 Easy Money: Financial Freedom on a Dollar a Day 1 CHAPTER 2 The 10-Minute Millionaire 13 CHAPTER 3 CHAPTER 4 CHAPTER 5 CHAPTER 6 CHAPTER 7 The Money Tree Formula: How to Create Lifelong Streams of Cash Flow 31 The Mountain Range of Financial Freedom: The Three Great Money Mountains 43 Your First Stream: Success in the Stock Market Investing for Total Idiots 49 Your Second Stream: Accelerated Stock Strategies Four Ways to Magnify Your Returns 61 Your Third Stream: Double Your Money in the Market How to Multiply Your Investment Dollars 79 CHAPTER 8 Your Fourth Stream: Winning Big in Real Estate 107 CHAPTER 9 Your Fifth Stream: A Fortune in Foreclosures and Flippers 141 CHAPTER 10 Real Estate Supercharger: 11 Powerful Ways to Earn 20 Percent or More on Your Money 155 ix iii

8 iv Contents CHAPTER 11 Your Sixth Stream: OPT Huge Profits by Paying Other People s Taxes 171 CHAPTER 12 Your Seventh Stream: Network Marketing The Ultimate Money Machine 181 CHAPTER 13 Your Eighth Stream: Infopreneuring How to Turn a Tiny Classified Ad into a Fortune 209 CHAPTER 14 Your Ninth Stream: Licensing Intellectual Property at Warp Speed 241 CHAPTER 15 Your Tenth Stream: The Internet Your Next Fortune Is Only a Click Away 253 CHAPTER 16 Financial Fortress Strategies: Shielding Your Multiple Streams of Income 277 CHAPTER 17 Balancing Act: Getting Your Act Together 295 CHAPTER 18 Share It: Leaving a Legacy That Outlives You 309 INDEX 312

9 $ P R E F A C E Dear Reader of Multiple Streams of Income: For over 20 years, through my best-selling books and international seminars, I ve taught thousands of people how to achieve financial freedom. Now it s your turn. In these pages, I m going to teach you how to earn multiple streams of lifetime income. More specifically, you ll learn 10 different ways to earn these extra income streams.these are not just ordinary streams of income.you ll learn how to create the kind of residual income streams that flow into your life 24 hours a day even while you sleep.you ll learn how to create these special streams of income... on a part-time basis. working right from your own home. using little or none of your own money. with few or no employees. using simple, proven systems that really work. In addition, I will show you how to... gain control of your finances. earn high rates of return 18 percent, 36 percent, and as high as 50 percent using little-known financial strategies, some even guaranteed by the government! v

10 vi Preface earn as much as $1,000 a day right from your own home. make an extra $50,000 to $100,000 a year for life. perhaps even become a lifetime multimillionare. What will all of this get for you? A lifestyle that gives you the freedom to do what you want, when you want, with whomever you want.there is a Spanish saying that captures the essence of this lifestyle: Salud, Dinero y Amor y Tiempo para disfrutarlo (Health, money, and love, and the time to enjoy them) If this is what you want, let s work together to make it happen in your life. Prosperously, your money mentor, Robert Allen

11 A C K $ N O W L E D G M E N T S There are so many people to thank, so many friends to acknowledge. First and foremost, I acknowledge the sacrifice that my family made during my long hours of research and writing. Daryl, Aimee, Aaron, and Hunter, I love you forever. Next, I want to acknowledge those who helped me in the research for this book: Tom Painter, Dr. Stephen Cooper, William Donoghue, J.J. Childers, John Childers, Ted Thomas, Daren Falter, Bob and Joyce Gatchel, Maryam Chaney, Ken Kerr, Collette Larsen, Saul Klein, Stan Miller, Mark Hulbert, Steve Shellans, Michael O Higgins, Chris Parks, and all my many friends at USANA. I owe a debt of gratitude to the fabulous people at Wiley Mike Hamilton, Larry Alexander, Linda Witzling, Dean Karrel, Michelle Patterson, Laurie Harting, Kevin Holm, and Kimberly Vaughn; to Janice Borzendowski and Kim Nir; to Chris Furry at North Market Street Graphics; and to the folks at Nightingale Conant. Many of them helped me turn the raw ore of my ideas into precious metal; others helped get that precious metal out into the world. The graduates of my advanced mentoring program become the sounding board for these strategies. They help me hone the rough edges of the material and make it more presentable to the world. Many incredible success stories have already come from this group, and I have no doubt that most of them are on track to financial freedom using these ideas and techniques. I call this special group my protégés. Thanks to all of you. vii

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13 I N $ T R O D U C T I O N I ve got good news and bad news. First, the good news: If you re like the average North American, earning at least $25,000 a year, then in your lifetime more than $1 million will flow through your fingers. That s a lot of money. In other words, you re already on track to becoming a lifetime millionaire. Now for the bad news: If you re like most people, you ll spend it all and, after a lifetime of earning, will end up with almost nothing. How is that possible? Frankly, because nobody teaches us about money. We receive no formal education in the most critical of all life skills: how to become financially successful. Did you ever, in all your years of public education, attend a class called Money 101? Why isn t such a class mandatory in every elementary school? How did you learn what you know about money? Most likely, you picked it up, a piece here, a tip there. You absorbed attitudes from your parents and from the media. You observed the examples of friends. You proceeded through trial and error the school of hard knocks. What you learned was haphazard, mostly wrong, and certainly out of context. If you read books on the subject, probably they overwhelmed you with details or bored you with useless facts. The result is that, if you re like most, you re confused and frustrated and wondering what to do, where to turn next. Well, I have more good news: You re holding the answer in your hands, this book, Multiple Streams of Income. ix

14 x Introduction Money is one of the most important subjects to study in your entire life. Some of life s greatest enjoyments and most of life s greatest disappointments stem from the decisions you make about money. Whether you experience great peace of mind or constant anxiety will depend on whether you get your finances under control. Your relationships will be greatly affected, too. In fact, most divorces in our society result from disagreements about money. Thus, understanding money how to make it and keep it is absolutely essential to your life, to your relationships, to your happiness, to your future. Some people seem to be naturally good at managing money. The same $1 million flows through their fingers, and they seem to know how to keep some of it and even make it grow in some cases, a hundredfold more than the average person. Do these people work 100 times harder? Are they 100 times smarter? Of course not. They just know how to play the game. You see, money is a game, albeit a very important one. If you know the rules, you win; if you don t know the rules, you lose. As physician George David said: Wealth is when small efforts produce big results. Poverty is when big efforts produce small results. Like its predecessor, the second edition of Multiple Streams of Income explains the rules for playing the money game so that you, too, can become a winner. By following the simple strategies laid out in the book, you can begin to enjoy a banquet of prosperity, one that lasts throughout your working life and extends into a financially secure retirement. You will learn: A simple system for controlling your finances How to invest your surplus funds without losing sleep at night How to create multiple streams of lifetime income How to oversee your growing financial empire in as little as 10 minutes a day How to leave a financially secure future to your family and loved ones You may be wondering what qualifies me to be your instructor. I started in the 1970s, perhaps just like you, with a dream of becoming financially independent. After graduating with an MBA from Brigham Young University in 1974, I began investing in small real estate ventures and parlayed a tiny nest egg into a multimillion-dollar net worth in a few short years. To be sure, along the way, I suffered my share of setbacks. I ve not only made millions but lost millions and made them back again. I know from the school of hard knocks what works and what doesn t. More, my powerful systems are proven winners. My book, Nothing Down: A Proven Program That Shows You How to Buy Real Estate with Little or No Money Down, was a number one New York Times best-seller and, ultimately, became the all-time real estate investment classic used by beginning investors. Three other of my books were also major best-sellers: Creating Wealth, The Road to Wealth (the true story of how I selected

15 Introduction xi three people from the unemployment lines of St. Louis, Missouri, and taught them the secrets of financial success), and, most recently, The One- Minute Millionaire (cowritten with Mark Victor Hansen). The Road to Wealth is my favorite and, I think, my best book. I ll send you a free copy if you ll pay the shipping and handling. Call my office at The second edition of this book is the result of having worked with thousands of successful people for more than two decades. I have seen people go from living on the streets to living in mansions, from driving a taxi to being chauffeured in a limousine. In Multiple Streams of Income you will discover how to create wealth in many different ways and from multiple sources, which I call money mountains. These three wealthcreation mountains, distinct from each other yet with similar characteristics, are the investment mountain, the real estate mountain, and the marketing mountain. From this range of money mountains, at least 10 separate and distinct streams of income flow into your growing reservoir of wealth. I chose each stream carefully, using a formula I call the money tree formula (which you ll learn more about in Chapter 3). You will learn the nine characteristics of an ideal stream of income and exactly how to profit from each of these streams. The goal is for you to add at least one new stream of income to your life each year, so that, eventually, these streams will overflow your life with prosperity and freedom. The first question people usually ask at this point is, Why multiple streams? To answer that question, I ll ask another: How many streams of income did it take in the 1950s for most families to survive even prosper? One. Compare that to today, when very few families can survive on fewer than two streams of income. And even those won t be enough in the future. It s a volatile future, and you d be wise to have multiple streams of income flowing into your life. Prosperous people have always known this. If one stream dries up, they have many more to tap into for support. So-called ordinary people are much more vulnerable. If they lose one of their streams, it wipes them out. And it takes them years to recover. In the future, you will need a portfolio of income streams not one or two, but many streams from completely different and diversified sources so that if one stream empties, you ll barely notice. You ll be stable. You will have time to adjust. You will be safe. If you don t have multiple streams of income flowing into your life at this time, maybe it s time to add them. That s what the second edition of this book is for, to detail the nitty-gritty strategies and techniques for developing 10 separate streams of income. Here s how, together, we ll go about mastering this all-important information: Chapter 1, Easy Money: Financial Freedom on a Dollar a Day, lays the groundwork by establishing some true and sound financial principles in particular, by addressing the concept of compounding. Chapter 2, The 10-Minute Millionaire, reveals the secrets really, skills essential to all prosperous people, namely, to value money, to control money, and to save money.