Would you like to know how to generate multiple streams of income? Many people have built a portfolio income which diversifies their income ‘trickles’. Rather than relying on a single job which takes all of your time and ties you to be totally reliant on a single company; many people also have a second income from one source or another. In fact this is becoming more common as jobs become less secure. Diversifying your income strategies is vital to achieving multiple steams of income.
How To Generate Multiple Streams Of Income – Build Financial Security
Having multiple steams of income is a great concept but only if you are also financially secure. It’s pointless if you are running at a loss continually and still drowning in debt. Ideally you should get a primary source of income to start with to build on. Otherwise you can easily fall into debt and spend money servicing that debt. All the income streams in the world won’t matter if they are outweighed by your building debt.
- Step 1 is therefore to get out and stay out of debt.
How To Generate Multiple Streams Of Income – Diversify Your Income
Having multiple sources of income will also protect you from any financial downturns in any particular industry. If your income or business is dependent on only one industry, if that industry takes a huge hit then so does your income. While you need a steady income source to give you stability, and also give you more opportunities for new businesses and opportunities, you don’t want it to completely take over your life. Then there would be no room for anything else. Start with one single new income stream and work on one at a time.
- Step 2 is therefore to hold down your current position while looking for new opportunities, or turning a hobby/interest into an income.
How To Generate Multiple Streams Of Income – Active versus Passive
An active income stream might be your job or a skill or hobby which you can turn into a part time or even full time business. If you have a skill which you could market, consider all the different possibilities which could come from this. For example if you play the guitar you could:
- Teach lessons from your home
- Create a blog or website and products to download
- Create a book to promote online or a free giveaway e-book to help promote your blog.
- Promote your blog with regular videos and content
Think of what interests you have which you would do anyway – regardless of whether it makes money. By focusing on your passions you can generate the necessary energy to keep focused on building a long term and sustainable income from it.
How To Generate A Passive Income Source
Ideally we would all have a passive income which requires no work on our behalf. However these kinds of income usually either come after a lot of work has been done previously, or by using money to create more money: by trading (e.g. stocks and shares), through interest of money in a bank, by buying property and adding to it’s value or holding until the value increases. You can also create passive income through the internet via affiliate marketing and with specific jobs like writing books, acting, or musical work being sold repeatedly (royalties). See best passive income opportunities and passive income ideas uk.
Multiple Streams Of Income – How You Spend Your Time
Consider how you spend your free time. Time is your greatest asset. Every day you have a certain number of hours most of which (for most people) is filled with work. After work what do you do? Could you spend an hour or two on a new income stream every day? You could build an internet based business around an existing job if you have a few hours to spare each day. Learn more here.
- Step 3 is to take stock of your spare time. How do you spend it? Could you spend it more wisely?
How To Generate Multiple Streams Of Income – How You Spend Your Money
Many people claim they have no spare money left for another part time business yet won’t give up their spending habits such as going on holidays, buying expensive clothes or going out for drinks regularly and socialising. How do you spend your money and which spending habits do you always justify to yourself? By giving up some of your spending habits you could free up some money to generate a new business which you can work on in your spare time.
- Step 4 is therefore to recognize your spending habits. Could this money be used elsewhere to generate another income source?
Money makes money and an income portfolio can be made up of investments and speculations. However, you can’t make money like this without having it in the first place. Consider using some of your ‘habit spending’ to buy shares, invest in an internet business or build your own hobby based business based around your passion.
Here’s another great book which will help you to recognize overspending habits, plan to pay off debts and mortgage more quickly and pay yourself first. By paying yourself first, that is to pay money directly from your income automatically (into a high interest investment account), before you have chance to spend it! By learning to live on less (below your means) you begin to develop a passive income through savings.
How To Generate Multiple Streams Of Income – An Internet Based Business
An internet based business is one of the best ways to generate multiple sources of income. It available to almost anyone who has the desire to do it, providing they are prepared to work hard and for a sustained period of time. With an internet business you can sell affiliate products which:
- Generate monthly residual income – for the right products
- Have a high ticket affiliate commission – make $1000 on a single sale
- Have multi -tier affiliate commissions – you can benefit from the sales your team members make.
- Benefit from a community based education platform taking you step by step through the process of building your own internet based business.