How To Create Multiple Sources Of Income – 7 Ways
Learn how to earn extra income by using your existing skills, or invest in yourself to develop new ones.
Multiple Sources of Income:If you have read numerous articles about entrepreneurship, you might have observed that the majority of entrepreneurs have various streams of revenue.
Most of the time, on purpose, business owners do everything they can to ensure that money comes from all directions – or, as some might say, ‘make sure their eggs are not all in one basket’.
Entrepreneurship is not easy, and income sources dry up all the time.
By having income streams from multiple sources, entrepreneurs can ensure that money never stops coming in.
Income coming from everywhere, sounds great, doesn’t it? Unfortunately, some people already find it difficult to figure out how to create a single source of income, let alone multiple.
I experienced a similar feeling when I commenced my study of money, quite some time ago. The memory of my initial reading of Rich Dad Poor Dad remains vivid in my mind, and I entertained the idea of becoming wealthy at some point in the future.
Although the author of this book is often criticized nowadays (for good reasons), he still helped me a lot. Not only was Rich Dad Poor Dad an excellent read, but it opened my eyes to how I could make money work for me, not against me.
Why it’s essential to have multiple sources of income
If you’re like most people, you probably have a single main source of income. And while there’s nothing wrong with that, relying on a single source of income can be risky.
For example, what would happen if you lost your job or if your main source of income dried up? Many have experienced this situation during the pandemic, with job losses and layoffs.
It is crucial to have several revenue streams to count on. In the event that one stream runs dry, you can still depend on the other sources.
Richard Corley analyzed IRS data and found that 75% of millionaires have more than one source of income.
Many millionaires adopt a strategy of having multiple sources of income, with an average of 7 streams of income.
We will examine in more detail the 7 most frequently encountered sources of income among millionaires.
The 7 sources of income of millionaires
Here are the 7 most common sources of income among millionaires.
1.Dividend income – Income generated from stocks, mutual funds, and ETFs held in a brokerage account.
How do dividends work? When a company earns profits, it can choose to reinvest that money in the company or pay a portion of the profits to shareholders in the form of dividends.
Dividends are typically paid quarterly and are taxable at your marginal tax rate.
The more you invest in dividend-paying investments, the more money you can potentially earn.
reinvesting dividends is a great way to compound your returns over time and generate passive income. It allows you to earn more dividends on the additional shares you acquire, which can lead to even more growth in your portfolio.
Bux Zero and DEGIRO are indeed reputable brokers for investing in dividend-paying stocks, among other types of investments. However, it’s important to do your own research and choose a broker that best fits your investment goals and risk tolerance.
2.Rental income – Money earned from renting properties, whether it’s houses, apartments, commercial real estate, or storage units.
Rent income is passive because all you have to do is collect the rent checks!
Of course, you’ll have to put in some work upfront to find tenants and manage the property, but once those tasks are accomplished, the money will flow in.
Rental income is a great way to build wealth because it’s relatively easy to acquire and maintain properties, and the returns can be very high.
If you’re not comfortable with managing rental houses or investing in apartments for rent, you can always invest in a REIT (Real Estate Investment Trust).
REITs are publicly traded companies that own and operate income-producing real estate such as shopping centers, office buildings, and apartments.
It’s a great way to get exposure to the real estate market without having to deal with the downsides of being a landlord.
Another option is Raizers, a crowdfunding real estate platform that allows you to invest in high-quality and high-potential real estate projects.
3.Earned income – Income from a job or a supplementary activity.
Earned income is the money you earn by working.
It is the most prevalent and familiar form of income, but it requires the most active effort. If you desire to increase your earnings, you need to put in more working hours.
There are no alternative options, but there are methods to leverage your earned income to your advantage.
One of them is to invest in a business.
Owning your own business allows you to earn much more money than you could ever earn by working for someone else.
Of course, it takes a lot of work, dedication, and time to create a successful business, but it can be very rewarding both financially and personally.
Another way to make your earned income work for you is to invest it in assets that generate passive income.
As an instance, you can use your earned income to acquire rental properties or invest in a selection of stocks that offer dividends.
4.Royalties – Royalties on books, inventions, etc.
Royalties are payments that are made to you for the use of your intellectual property, such as patents, copyrights, and trademarks.
One example is creating a novel gadget, whereby you can sell the patent to a corporation and receive royalties for every instance of its use.
And if you create something valuable that people want to use, royalties can be an excellent way to generate passive income because you can earn money without having to work!
5.Business income – Income derived from business profits.
Business income is the money you earn from running a business.
This can be earned income (if you are self-employed) or passive income (if you have invested in a business).
Either way, it’s all about the money you earn from your business.
The income from a business can be very high, especially if you run it.
Types of businesses you can create:
- A service business: This is a business where you provide a service to customers. Landscaping, pet sitting, and home cleaning are examples of service businesses.
- A product business: This is a business where you sell products to customers. Examples of product-based businesses include online stores, brick-and-mortar stores, and food trucks.
- A franchise: This is a business based on an existing business model. Franchises are popular because they offer a proven business model and support from the franchisor.
- Online Business: This is a business that can be operated entirely online. Examples of online businesses include blogging, dropshipping, and affiliate marketing.
6. Interest income – Income from savings accounts, bonds, etc.
Interest income is money you earn by lending your money to someone else.
For example, if you have a high-yield savings account (like Revolut ‘s), the bank will pay you interest on the money in your account.
Or, if you invest in bonds , you will receive interest payments from the bond issuer.
Interest income is a great way to generate passive income because you can earn money without having to work!
The key is to invest your money in a safe and reliable investment that will earn you regular interest.
7.Gains en capital – Gains en capital resulting from the sale of highly appreciated assets.
Capital gains are profits that you make by selling an asset for a higher price than you paid for it.
For example, if you buy a Tesla stock for €200 and sell it for €300, you have made a capital gain of €100.
Capital gains are an excellent way to generate passive income, as you can earn money without having to work for it.
If you are ready to start creating multiple sources of income, check out the ideas below!
Looking for multiple sources of income? Check out these ideas.
If you’re feeling weary of depending on a single weekly paycheck, it’s a great opportunity to seek out additional revenue streams. It’s beneficial to have various sources of income, even if you don’t intend to become an entrepreneur.
You may need extra money to pay off your debts. Or perhaps you want to save up to buy a new house.
Are you ready for more income? Check out these ideas for additional streams of income that work:
No matter what your aspirations are, having greater financial resources can accelerate your progress towards achieving them. Additionally, there’s a possibility that your part-time endeavor could eventually turn into your main occupation.
Ready for more income? Check out these working ideas for extra income:
1: Starting a blog.
While I didn’t make any money with linkfre during the first 12 months, the time I invested was totally worth it. Although it takes time to make money blogging, the benefits can be enormous if you’re patient and hardworking.
My recommendation to anyone contemplating this course of action remains the same. If you wish to initiate a blog as a part-time endeavor, the most effective approach is to simply begin. Avoid over-analyzing the situation and don’t permit your uncertainties to hinder you.
2: Participate in paid surveys
Recently, I published an article about the many ways to make money through paid surveys. You see, various companies will pay you to sit in front of your computer and answer survey questions from the comfort of your home.
It’s easy to sign up, and you can answer these surveys at any time of day or night. Check out companies like:
It’s not a lot of money, but it’s something you can do while watching TV to earn some extra cash.
3: Become a freelance writer
If you enjoy writing, it’s not very difficult to start working as a freelancer from home. Thanks to websites like Textbroker, Upwork.com, Freelancer.com, and Fiverr, you can create an online profile and respond to job postings as soon as they are posted.
While most writers start at around €50 per article, it’s not hard to make more money over time if you put in the effort. However, like with all other activities on this list, the first step is to just get started.
4: Market your online skills on Fiverr
Utilizing your digital abilities and advertising them on Fiverr is an excellent way to initiate diversifying your sources of revenue.
If you’re able to design web pages, write copy, design mailers and customer products, or perform other tasks on the web, it’s easy to create a Fiverr profile and get started.
Although the work starts at €5 (hence the name), you can increase the value of your clients by offering more work or value-added services that cost more. Many people also use Fiverr to build their first client base and then create their own digital business from there.
5: Become a Virtual Assistant
Virtual assistants perform a wide range of tasks for online entrepreneurs who need help. Depending on the position, tasks can range from answering emails to managing social media, creating Word documents, or responding to online requests.
Although the pay varies widely, you can easily earn €20 per hour or more as a virtual assistant if you find the right type of client.
Websites such as Freelancer.com and Upwork.com are typically where you can discover employment opportunities for virtual assistants.
6: Start a Home-Based Business
In my article on easy-to-launch home business ideas, I highlighted a number of business opportunities with low start-up costs and lots of potential.
The type of business you should create depends on your current passions and skills. If you love baking, for example, you can consider starting a home-based cake or cookie business.
Do you enjoy sewing? Spend your free time creating perfect craft items, then sell them in your own Etsy shop. Do you love dogs? Consider pet-sitting at home and marketing your services on a website like Rover.com.
No matter what your abilities are, there are some concepts for home-based businesses that could be suitable for you.
7: Create an Online Course
Depending on your skills, you can also consider creating a course. With a platform like Udemy, you can create an online course on almost any topic and charge as much as you want.
Do you not think that your skill justifies a full course? Think about it. At present, Udemy provides courses covering diverse topics including music stardom, generating online cartoons, digital scrapbooking, painting, and mastering fundamental techniques of card magic.
Believe me, if you can do it, someone wants to learn it.
8: Driving for Uber
Driving for Uber may be the best way to earn extra money and create multiple streams of income. Not only can you work as much as you want, but you can also work whenever you want.
To get started, you need to pass a background check, have a valid driver’s license, and auto insurance. You also need to have a car in good condition and reasonably new.
9: Buying and Selling on eBay
If you have a knack for finding good deals, you may be able to turn them into profits. That’s what many people do, buying discounted items and reselling them for huge profits.
If you’re into antiques, for example, you could visit garage sales to find hidden gems and then use your knowledge to make profits.
Your interests may pertain to video games, specific apparel trademarks, or some other area of focus.
Regardless, it’s conceivable to convert your proficiency into revenue with an eBay store by conducting some investigation. The added benefit is that you can vend items from the convenience of your residence.
These are just a few ways you could start earning extra income over the next twelve months. Obviously, there are plenty of other possibilities depending on where you live, your skill level, and your income goals.
Just remember that, like anything else, increasing your income takes time. You won’t get rich overnight with any of these jobs, just as you won’t with a multi-level marketing business.
Money doesn’t grow on trees, but it tends to multiply when you work hard. And with multiple sources of income, your money will work hard for you.