How to Create Multiple Sources of Income
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I’m sure you have heard the seemingly ageless saying “Don’t put all of your eggs in one basket.”
We pretty much all have.
Which is actually quite odd to me, because I have gathered actual eggs on a farm before and I put all of the eggs in one basket… I mean why would I carry multiple baskets?
That seems sort of silly if you ask me.
But regardless of this, what people really mean when they say “Don’t put all of your eggs in one basket” is that it isn’t a good idea to let everything ride on one thing.
And honestly, I agree.
This applies to many many things in life, and your income should be no different. For the longest time I just had one income, my day job.
This meant if I got sick, or if I hurt myself doing something crazy (which is pretty likely if we are being honest), then I wouldn’t get the same paycheck I normally get from missing work.
This is what made me realize that I needed to begin building multiple sources of income.
So that in the case something happened and I were injured or laid off, or the building I worked in burned down… (not that I want to burn it down or anything…) I would still have a good chunk of money rolling in every month.
So after following my budgeting method I began using a couple of years ago, I saved up enough money to pay of all my debt and had some extra cash saved up.
This is when I began the process of incorporating multiple streams of cash flow into my total income. And… since I really like all of my readers so much… (like seriously, words can’t explain how grateful I am that you guys read my articles every week.)
I’m going to share exactly how you can do the same!
Why is it so important to build multiple streams of income?
It is commonly said that the average millionaire has SEVEN sources of income.
This means that the average millionaire has money coming in frequently from multiple sources.
This is such a big deal because it protects you and your family financially, and it allows you to build a sense of financial security that you won’t find from just having ONE job.
So how can you do the same? What income streams could you begin to incorporate?
Honestly, in 2020 the possibilities are more endless than they have ever been. You can make income doing so many things, some you may not even know exist.
So I have compiled a list of 7 possible ways you can make extra income and help to diversify your money, and have multiple streams of income.
1) Get a second job.
Of course this one is typically the first go to for people.This one is honestly the least ideal, because typically most second jobs still require you to trade your hours for money, when ideally you should be saving more time and making more money.
If you work a day job already, picking up a night job or a job that has available shifts on your days off can really be draining. It can really destroy your work life balance and keep you from enjoying the things you’d like to. Regardless, it is still an option.
2) Start a blog.
This one is still the most surprising to me, until I began looking at income reports of other bloggers, I didn’t realize how much a blog could truly make.
It may take some serious work, but blogging is really rewarding, and if done the right way can begin bringing in income almost immediately. My blog started bringing in income it’s second month. And if you really put the effort into it, you can grow a blog relatively fast when compared to a traditional business, and with little upfront cost.
You can start a website with Bluehost for as little as 3.95 a month! This is the exact company I use for my blog and I couldn’t recommend them enough.
3) Start a YouTube channel.
This one is becoming increasingly popular in the last couple years, and is something that is really big in my generation.
Youtubers are like these new emerging celebrities that have developed a cult following that allows them to bring in ad revenue or provide a platform for them to sell their products.
Youtube is a tough platform to gain traction on, but when you do, it can be extremely rewarding!
4) Invest in real estate.
This one is such a popular way to build wealth.
Many people like the idea of investing in real estate as they physically own a property and they can potentially increase the amount of revenue it brings in every month by renovating and improving their property.
You can also invest in REIT’s and eREIT’s through the stock market or crowdfunding sites to eliminate the work involved in owning a property by yourself.
5) Invest in the stock market.
While this one is a touchy subject for some as the stock market has had some serious downturns in the past and lost a lot of people money. It never fails to rebound, it even continues climbing and growing even after suffering huge losses.
The stock market is a particularly passive income and it is one of my favorite ways of increasing my income every year. Many stocks and ETF’s pay dividends and this can potentially offer you monthly, quarterly, or even yearly payments without having to sell any of your assets.
6) Create an online course.
While a lot of people tend to offer this alongside a blog they have created, it is actually a completely separate revenue stream.
Courses can be created and sold with or without a blog, and they can potentially grow your income passively for years to come. I have seen someone publish a course, and after four years, it still pulls in over $1,000,000 in revenue each year.
And all they have to do is update the content regularly. Not a bad gig if you ask me. Do you have something you are good at that others may want to learn? Maybe you should try your hand at building a course around that.
7) Offer freelancing services.
This can come in many forms, but most often is found in the form of a VA. Otherwise known as a virtual assistant.
This is someone that offers a service to a company in the form of completing tasks they need done such as checking emails, handling customer service, or even moderating Facebook groups or even running their Pinterest. This can be rewarding work, and often carries a pretty nice premium.
I began my journey as a VA at $25 an hour and this is considered pretty standard for the industry.
So, how did I build multiple sources of income?
There are many many ways of creating multiple income streams, even outside of these ways I listed here and there are more and more opportunities created everyday.
There is no reason why you cannot begin diversifying and increasing your income today.
I took my income from one stream to 5 in a matter of two years and it has been the best decision I have ever made.
Well, honestly, there isn’t much to it… I just worked my butt off… and by working hard I was able to establish these different sources of income every month.
1) My day job
The good old fashioned day job, this makes up 30% of my entire income and it is the same every month, and with the position I have there is little to no room to grow. So I’m pretty much maxed out there.
2) My blog
I bet you didn’t know this nice little blog your reading now makes some cold hard cash every month, but it does. It makes up about 20% of my income. It makes a nice consistent income every single month (since my second month of starting it),and it continues to grow by almost 30% every month! It should be my highest source of income by the end of the year! Which is insane, I never would have guessed that in a million years.
3) My Stock investments
I receive around 2% of my yearly income every year in the form of dividends, paid out throughout the year.
It may not seem like much but this amount continues to grow every year and as I reinvest my income into more stocks it continues to grow my dividend income. The best part about this income is it is COMPLETELY passive. I make it while I’m sleeping.
4) My real estate investments
While I don’t currently own any real estate in its entirety, I do have money invested via crowdfunding, and this pays out dividends monthly.
Making up about 1% of my income every year, this number also continues to grow but slower then any of my other revenue streams as it takes longer to accumulate higher amounts of real estate. This income is also passive just like my stocks.
My final source of income is freelancing. Making up about 42% of my income, freelancing has been extremely rewarding work, financially and emotionally.
Being a part of a team that works for a $1,000,000+ a year company is not only challenging, but it teaches me SO MUCH every day. It has helped me to grow my own business and I’m so grateful I began my freelancing journey this year.
I have worked very hard to diversify my income but, I still have a long way to go.
As I continue growing my income from my non passive sources, I will continue to invest the money needed to grow my passive income sources. This allows me to have a better work life balance and eliminates the need to continue putting in long hours everyday.
I encourage you to take the time to brainstorm and think of how YOU could diversify your income with the next six months and increase your financial security for not only yourself, but your current and future family.
Are there some other forms of income you use? Or some ideas you have? Leave me a comment and let me know, I’d love to hear from you.
To all my readers, stay busy living better, and continue making the best financial decisions. You’ll thank me later.
Until the next one,
Hey! I'm Noah Riggs.
Noah is the founder of Busy Living Better and has built a life he loves, despite growing up poor. He shares exactly how he started his six-figure business, became financially stable, and lives his best life so that he can help you do the same. You can read more about how he did all of this before the age of 23!