Hey this is Sasha Evdakov and thanks for joining me here at Backstageincome.com where I share with you how money is made behind the scenes in your business and also your life. In this week’s video what I’d like to do is share with you how to Create a Strong Solid Foundation to your financial state, to your finances.
How to have that foundation so that you can go out and do the things you enjoy so that you cannot worry about the stresses of money and not constantly think where am I going to get more money and if anything happens you have other areas to support you.
Building a foundation, a solid foundation is where everything else gets supported. If you have a weak foundation then everything else collapses.
Think about it when you’re building a sky scraper or a house, everything sits at rest on that foundation, if that foundation is weak, the roof, the walls and everything else collapses. Think about it when you’re standing if you’re training in the martial arts, if you’re playing tennis, if you’re playing basketball.
All those things are all about having that foundation to either execute the swing, to execute the jump shot. It’s all about the foundation and your finances and your financial stability is the same way, you need a solid foundation to have that luxury, time freedom and to be able to continue doing the things that you want to do in the future.
To get this started and to illustrate this example, what I want you to do is first pretend that here we’re looking at a diving board. This is our diving board concept and this is our foundation, so this is our key foundation of our support.
This is holding up our diving board, in here this is our diving board, that what we do is use this diving board to come here, spring off of it and continue every single time that we visit the diving board to make money.
Whether that’s a financial job that you go to and if you go to job every day, you go to the diving board, the job right here is your support so that is your job and you’re using it as your support and foundation. This is really one stream of income.
If you look at it, this is the one thing that’s holding you up and if this piece right here, in this diving board, that foundation, that support is gone then everything collapses, that diving board would not be operational.
This is how most people structure their life in finances, is they have this one stream of income. So when you have one stream of income it’s like a diving board, it has one support and if it crashes, everything else falls down with it.
Multiple sources of income
Now the second approach to having a financial foundation, is really thinking about it in terms of pillars. If I start structuring things, let me pretend that this right here is one pillar, right there that’s one pillar and everything in here is again this could be one source of income.
This could be your job if you wish to treat it that way then create another pillar. Now once you have a second pillar it gives you another stream of income, this could be part time jobs or a secondary job that you do somewhere else.
This could be like a weekend job or a part-time job. Now if any one of this collapses, you still have the other one, at least it cushions you. It’s kind of like diversification and it cushions you and balances you out.
So, if you have a table top right here, what happens is, is it supports it right there. You have this table top that’s being supported by two cushions, it has two legs. Now what’s better than two legs? Well, you continue to expand this process.
You continue and now you evolve the next pillar. This pillar could be something that you get residual income from. Let’s say you wrote a book, five or ten years ago and now that book is constantly generating revenue.
Again these extend your table further and let’s say you continue this process so you add a fourth pillar. Now what does this do? It creates another stream of income. This could be again from something else that you’ve done and created.
This could be such as a video course, it could be something completely different, anything that you’re getting another stream of income from would be another pillar to help sustain you and build a foundation and that way if any one of these things collapses, if anyone of these things go down you still have the other thing.
For many businesses this is the way that you really structure a business, is that you have multiple pillars when you start looking at a business because if your business relies on just one product then this becomes very dangerous.
Instead what you want to do is have multiple foundations to your business. If you have let’s just say this one would be your key product. The second one would be a service that maybe you offer, consultation service (If you do offer this service, we really like Calendly for scheduling).
The third one could be another differentiating product or it could be affiliate sales if you’re in the internet marketing space and here’s one from advertising revenue. So you’re creating these income streams from all these different parts and making money from all these different areas.
From products, services, affiliates, and advertising and now you create this solid foundational table to where you’re making money, to where your business is sustainable and that’s what holds it up, that’s what sustains it.
The same thing here, if you’re in your personal life, if you have your job or your business, you have your weekend job, if you have a weekend job or part-time job you have books or video courses.
Whatever it is that you’re doing, it doesn’t matter, you can continue to create more and more pillars and income streams to where now you create a solid foundation where if anyone of this or even half of this go down you personally don’t suffer that much.
This is what’s great about having multiple income streams, is that when you have multiple streams of income now everything has a much better foundation for your personal life and the sky of course is the limit with these pillars.
You can continue to stack them, you can continue to add more pillars, more little support beams, all these little things continue to help support your building, little streams, little income streams, little mechanisms that continue to build that support because if you have a weak support right here something that’s very weak if this one thing collapses, this becomes very dangerous.
So if you’re relying on your job and that’s 100 percent of your income, if that’s one hundred percent of your income I mean in technicality terms back in the day, the job was always very stable and that’s how our parents and grandparents will always say.
They say “Hey, get a job because then you’re 100 percent secure and they give you benefits”, but if anything happens then you’re done, that income stream is done. They may give you a package and they give you benefits, now probably in all kinds of anything.
However, if anything happens to that you don’t have those additional income streams to support and without that, that’s where the danger lies.
The more income streams whether that’s in your business or your personal life even if you do have a job, if you can create or write a book this just all of a sudden adds to the cushion. (Side note- Dragon Naturally Speaking is fantastic software for quickly and easily writing a book)
If you can create a video course or have some other residual income that’s coming in from affiliates, advertising, or from a website, whatever it is then it just continues to build that foundation.
Points to focus at
Focus on building your foundation and making that foundation as solid as possible and continue to grow it, continue to add pillars and the way I look at it is adding and building these pillars really is just never ending, you’re constantly adding pillars.
You’re constantly adding support beams to where you’re just increasing your table top, you’re increasing that stability and just constantly growing it.
You’re constantly setting it up to make it better and better, making it more and more stable to the point where it has that critical foundation, where if anything happens to any of those legs, you have so many legs that you can stand on that it’s really not going to be a problem.
Wouldn’t that be great if anything happened to your job, that you just don’t have to worry about your finances or the way that you’re going to live because you have so many other things in place moving you forward bringing you that income and continue to live your life.
Thanks for joining me in this week’s lesson and if you want to see other lessons like this one go ahead and click this button right here and when you get there enter your name and email address and I’ll be sure to send you my newsletter as new training videos are released.
If you want to see some of the products and courses I have available the hit the button right below this video and you’ll be taken to that products page.
In the end remember that there’s more to life than just financial gains, go out do what you love, contribute to others but most importantly live life abundantly.
I’ll see you next time!
Resources & Helpful Tools
[thirstylink linkid=”5951″ linktext=”” class=”afflink” title=”Calendly”]
[thirstylink linkid=”5544″ linktext=”” class=”afflink” title=”Dragon Naturally Speaking”]
[thirstylink linkid=”5545″ linktext=”” class=”afflink” title=”Business Launch Pad Book”]