May years ago, I attended a multiple streams of income seminar by Robert Allen. What I happened to learn there has changed my life for the better over these last few years, but especially since the economy took a nose dive.

I have to say that at the time, I learned the information presented, and being a busy college student promptly put away his theories for "later when I had more time." I was in school, and totally tied up in the working class mentality that you get your education, get a good job, get a high wage, invest your money and save for retirement and with those actions, true wealth would be mine. Oh, yes, I would work hard, harder than most and that my friends is the way to financial security. Well, almost anyway. Until my company folded and there was not another job to be had in my industry. Welcome to my eye opener, a good education guarantees you absolutely nothing, especially not in a bad economy. Nobody bothered to clue me in on this concept before I went off to school.

While I can not argue that the above is a good foundation to building financial security and wealth, it surely is the slower way to achieve it. Do not get me wrong, I would be nowhere today without my education and the savings I had accrued from working for a paycheck. In fact both of those, coupled with a strong work ethic have allowed me to go off on my own and know I have the skills necessary to succeed at creating a passive income online. I'm working my tail end off every day, building my passive income portfolio, and every day I see my money tree get a little bit fuller of ripening fruit.

When will my money tree bear fruit? It already has, I get paid every single month more than the month before and with no investment whatsoever, except my time. If I would quit today, I would still get paid for a very long time. I am currently enjoying knowing that my money tree will grow and become stronger with every day I choose to work to make it so. I am successfully staring down my working class mentality everyday and making the choice to know I will be successful at building multiple streams of income into a raging river, or two, or as many as I choose to build from now on. If I ever choose to take another job, my passive income will simply bolster my income earning potential working for someone else.

As I embarked upon the creation of passive income revenue streams, I started to realize one thing, I really can do this. Robert Allen was totally and completely right in his reasoning. He is a strong advocate of both independence and diversification as you focus on the creation of wealth via passive and residual income. Independence allows you to not be reliant on the economy, or any person or business entity. You purposefully position yourself to be able to withstand job layoffs, bad economies, bad luck, bad health or whatever. Creating multiple streams of income will do that for you in a big way. Your streams of passive income are there to protect you from dealing with not having enough financial resources and will make you self sufficient even if the worst ever happens.

So why is multiple important? Well, multiple is the most important part of the theory in my opinion. When you create income in lieu of a paycheck, you will need to protect yourself from the possibility that most of you income could one day disappear at the drop of a hat. Fail to diversify and this nightmare could become your hellish reality. I have known personally people who work online who have had to go through this. Never, ever, ever, put all your income earning potential in one place. If you do, you are being exceptionally risky. The more diversified your network of passive revenue earning projects, the safer your income will be. Plain and simple this is the way it works, just like investing with money.

What was the truest golden nugget of information in the passive streams of income philosophy? Other than diversification, which I can not stress enough, it is the concept of passive income versus working for a paycheck. Truly, if you read any of the financial gurus out there, they all know and do one thing without fail, create wealth through passive income rather than work.

The reality is that we have a finite number of minutes, hours, days, weeks, months and years in our working lives. At some point, you simply can not work anymore. If you happen to earn your living by working and making a paycheck, you will eventually max out on your earnings potential. However, generation of passive income is by definition income from which the work is done once, and the earning continues on for considerably longer.

There are two ways to create passive or residual income that I know of, through investment with money, or through the use of your time. Passive income with investment is the type we are more familiar within everyday life through investment, although the generation of passive income with time is much more common online. I like to think of time equity as either a creative process or intellectual process. We use our time and skills to create content or services which ultimately pay us for either months or years. What can you do to make passive income with just your time, smarts and effort? Read 5 Legitimate Passive Income Opportunities to Make Residual Income for more information on how to get started.

In my humble opinion, Robert Allen's multiple streams of income wealth building theories are both valid and sound money making strategies. I do not agree with all of them, but the foundations of his theories are absolutely true and correct. You do need more than a paycheck to acquire substantial wealth. I'm not saying you can not do well with a good education and a high income job, you can. However, to really take your money making abilities to the next level you do need a leg up from the rest of the working world. Multiple streams of income will do that for you, and after my own experiences with what can happen to one primary stream of income in the form of employment, I could not agree more that diversity is the key to protecting your wealth and securing your financial future.