How Millionaires Protect Their Ass… ets - Timothy Sykes

How Millionaires Protect Their Ass… ets

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Let’s get one thing straight…I absolutely love teaching. I’ve never felt so passionate about anything in my life, and I’m beyond happy that I’ve fallen into this career at this point in my life.

I didn’t set out to be a teacher.

All through school, trading penny stocks has really been the only thing that’s interested me. But as I’ve gotten further and further into the industry, I’ve been appalled at the way that traders with small accounts are treated. When I started teaching here on TimothySykes.com, there were virtually no other teachers helping students like you learn how to grow their accounts exponentially.

Download a bite sized cheat sheet to get to know how millionaires protect their ass.

That, to me, is a failure of epic proportions.

What else was I supposed to do? How could I not get into teaching, when there are so many people in the world who need to hear the things I’ve learned? Who need to know what I’ve learned about profiting 20-40% – not in a single year, but in a single trade? But just because I’m teaching now doesn’t mean that I’ve given up trading. As much as I love both trading and teaching, there’s an important lesson I’ve learned from other millionaires – and that’s how to protect your ass…ets.

See what I did there?

The thing about millionaires is that they know their money. They know it inside and out. And there’s a reason for that. According to Brian Tracy, “The average adult spends 2-3 hours each month studying and thinking about their money, usually at bill paying time. The average self-made millionaire, by contrast, spends 20-30 hours per month thinking, studying and planning his finances.” Spending all that time on their money means that these millionaires have learned a thing or two. One of the most important is that they know how to diversify their income.

What is Income Diversification?

I’m sure, if you look up “income diversification” online, you’ll find some fancy explanation of what the phrase means, but I’m going to put it simply here:

Income diversification means not putting all of your eggs in one basket.

Suppose I stuck with trading. Maybe I decided that I didn’t want to work 16-hour days, pouring my soul and my more than a decade’s worth of experience into videos, DVDs, chat sessions and the other resources I give my subscribers and Millionaire Challenge students. Maybe I figured that watching the markets for good penny stock plays would be an easier way to live my life (and believe me, even though being a good trader requires training and preparation, it’s true that juggling both can be tough).

But then, what would happen if the stock market completely, utterly crashed?

I know that’s a really unlikely scenario (despite all the doom and gloom people are predicting these days). But go with me here for a second. If I really couldn’t trade anymore, how would I make money? How would I earn a living? I’d have put all of my eggs (my income) in a single basket (trading penny stocks). And if that basket went away, my income would dry up entirely.

Or, let’s break things down even more. As a penny stock trader, I know how to buy into pump and dumps and other runups, as well as how to short sell stocks as they’re falling. Sure, I’m better at short selling than going long, but the point is is that, if I have to, I can do both. I’m not limited in my ability to make money based on what the market’s doing (those of you who are panicking about the “end” of this long-running bull market might want to take that wisdom to heart). Even within trading, my eggs aren’t all stuck in one risky basket.

Teaching helps me diversify my income, as does my recent launch of Wolf Millionaire. I know it might seem strange for me, someone who’s made his millions trading stocks and teaching others how to do it, to suddenly be involved in an instagram training course. But you know what? If you’ve had a chance to look through the course, you know that instagram has become a huge part of how I reach students and inspire them to get more out of life. And the knowledge I’ve built growing my account to more than 500,000 followers? That’s just another way for me to diversify my income.

Stock market falls apart? No problem. I’ve built up a teaching career and a social media training course. instagram shuts down tomorrow? Again, no worries. The community I’ve built here will take care of me.

How Millionaires Diversify Their Income Streams

So sure, my example is pretty straightforward. I learned to trade penny stocks. I started teaching others what I learned. And then I started teaching a new group of followers something cool I learned in the process.

If you’re reading along with me – struggling to make your finances and your work/life balance work on your one income – the idea of building up multiple income streams might sound totally overwhelming. But according to Tom Corley of Rich Habits, it’s a common practice for millionaires. In fact, his research states that, among self-made millionaires:

  • 65% had three streams of income
  • 45% had four streams of income and
  • 29% had five or more streams of income.

Take Grant Cardone, for instance. Grant is the author of The 10X Rule, and he’s diversified the income he generated from his first business by building on his success and launching a real estate investment portfolio and a software company. Here’s what he had to say about diversifying his income:

“My first business had been generating a seven-figure income for years when I started investing cash in multifamily real estate. Once my real estate and my consulting business were churning, I went into a third business developing software to help retailers improve the customer experience.”

So say you want to be like me and Grant. You want to go to bed at night knowing that, if the worst should happen and your primary source of income disappears, you’ll be covered. Can you imagine what kind of weight that would take off your shoulders? How much better you’d sleep at night without feeling the stress of getting by day-to-day on a single income?

It might seem like a lot, but it’s possible. If I can do it, and if Grant can do it, so can you. You just have to be willing to work hard and take a few well-defined steps.

Step #1 – Identify your opportunities

Obviously, the first step in diversifying your income streams is to figure out what your second (and your third, and your fourth) stream of income is going to be. If you’re rich like Grant, you can go out and buy a bunch of commercial real estate properties. Rent them out, get tenants to pay you, and you’ve got a second paycheck coming your way (well, besides the maintenance requests, the vacancies and the evictions – which are just a few of the reasons I don’t like real estate investing personally).

But what if you don’t have millions of dollars lying around? In that case, you’ve got to do a quick inventory of what you’re working with. What are your skills? What do you like doing? How much time and money can you commit to building your second stream of income? As you’ve probably guessed, I’m a big fan of penny stock trading as a second income stream. My strategies are something that anybody can learn, and if you’re willing to trade premarket/afterhours, you can fit it into pretty much any schedule. But if you really aren’t interested in ways to grow a portfolio exponentially and build generational wealth, I guess you could always get a paper route or something…

Step #2 – Invest in yourself

Building a second stream of income isn’t going to be easy. If it was, we wouldn’t have half of all Americans with less than $10,000 in total savings. So step #2 in this process is to buckle down and do the hard work of investing in yourself.

Diversifying your income streams might mean that you don’t go out for pizza and beers with the guys. Or that, rather than watching the big game, you check out the highlights the next morning and spend that time studying your penny stock videos and reading past charts instead. Is it going to be fun? Not at first. But get back to me when you’re putting that second paycheck in the bank and try to tell me that it isn’t fun then!

Step #3 – Don’t blow it

You’ve got extra money coming in for what feels like the first time in ages. Your first instinct is going to be to go out and blow it on a nice vacation, expensive gifts or a new car. Don’t do it.

Guess what happens to a second income if you spend it all the moment it hits your wallet? It’s not really a second income anymore! It’s fun money to spend, but it won’t be there for you if you really need it in the future.

Be better than that.

Don’t let investing in yourself stop with your education. Truly invest in yourself by reinvesting the money in your portfolio or putting it somewhere safe until you need it. It’s not nearly as fun as blowing your new cash on expensive purchases, but if you want to live like a millionaire, you’ve got to act like one.

And if you don’t know what it means to think and live like a millionaire, join my Millionaire Challenge students and start protecting your financial future now.

 

Posted in Millionaire Habits

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7 comments

Timothy Sykes

Hey Everyone,

As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!

Which is why I've launched my millionaire challenge. I’m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.

So when you get a chance make sure you check it out.

PS: Don't forget to check out my free Penny Stock Guide, it will teach you everything you need to know about trading. :)

  1. jason

    stockstotrade – has it been launched?
    I have left my name/email much earlier but no update since then … ?

  2. Pingback: 8 Ways To Become A Better Trader - Timothy Sykes

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