Flickr / Joe ParksMake sure you can handle all your income streams.Logical thinking might lead you to the conclusion that the more sources of income you set up, the more money you'll have in the long term.
But before you run off to find a side job, consider this.
Roger James Hamilton, founder of the Entrepreneurs Institute and author of "The Millionaire Master Plan," argues that too many streams of income can lead to a loss of focus, which can eventually lead to a loss of money.
A income stream can come from something more active such as a side job, or something more passive, such as a rental property.
According to Hamilton, here's what can happen when you try to manage too many income streams:
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.
Hamilton says effective management is all about the people who are helping you to control your sources of income. He says that before deciding to invest in various assets - such as a second home - devote your energy to the people who will help you manage the flow of income those assets will provide you.
If everyone around you is unclear what your main focus is - what your position is and where you stand on the field - you will constantly chase the ball instead of having it kicked to you.
Your team will help ensure that you won't become overwhelmed trying to manage multiple income streams by yourself. If you're spread too thin over too many income sources, some sources are bound to suffer.
And that will only hurt your money flow in the long run.