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A simple way to understand the importance of having more than one way to make money:
Once there was a young farmer named Ramón who had a cow, Única. In just two years, Única became his main source of income. She gave Ramón enough milk every day to sell and cover his costs. Life was uncomplicated and fulfilling.
As time went by, Ramón grew used to relying on the milk from his cow for money. He didn’t notice that Única was aging. Eventually, she produced less milk and sadly passed away when Ramón turned 40. This left Ramón in shock. With Única gone, he lost not only a friend but also his sole income.
Unable to afford another mature cow, Ramón bought a young calf instead. While waiting for the calf to grow, he had to sell his valuable possessions to survive. These were his hardest times.
Being resourceful and determined, Ramón eventually overcame these challenges. His calf grew up and started producing milk, which he sold. Determined not to repeat his past mistake, Ramón planned to buy two more calves. This way, as one cow aged, the others would start producing milk.
The lesson here is that having various income sources is like owning a herd of dairy cows. Each cow symbolizes a different way to earn money. The goal is to have new sources ready to replace the ones that are no longer viable.
To grasp the concept of having multiple ways to earn money, let’s use the cow analogy. Your current income sources are like your “cash cows.” The most typical example of a cash cow is a job, which often is the only source of income for many. Other cash cows can include a business you run, or investments that yield dividends. Renting out a property or earning royalties from a book sold on Amazon are also examples of cash cows.
The “calves” represent potential income sources that aren’t yet profitable, but you nurture them in hopes they’ll become productive in the future. These could be new skills you’re acquiring, which might lead to a higher paying job, or a startup you’re developing, hoping it’ll be profitable later.
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