How To Create Multiple Streams Of Income

Thursday, 7 April 2022, 6:37 am
Press Release: Hugh Grant

If your goal is to build wealth and enjoy some of the accouterments of financial stability, there’s one thing you can do to accelerate your success: Move beyond a single source of income. You need multiple streams of income. This isn’t negotiable or optional – it’s a universal requirement. The question is, how do you do it?

4 Tips for Creating Multiple Streams of Income

In his study of 361 millionaires, including 233 self-made millionaires, author Tom Corley discovered that 65 percent of self-made millionaires have at least three streams of income, 45 percent have at least four streams of income, and 29 percent have at least five streams of income. In other words, they aren’t working 9-to-5 jobs, saving every last penny in the hopes of one day building enough wealth to retire. They’re actively (and aggressively) pursuing income in as many different places as possible.

While it’s not necessarily easy, generating multiple streams of income is certainly possible. It’s all about being smart, strategic, and intentional. Here are several of our favorite tips:

1. Invest in Real Estate

Real estate provides one of the best options for adding new streams of income. And while there are plenty of different ways to invest in real estate, there’s one option that stands out for being most accessible to everyday people: investing in residential rental properties.

Rental property investments are beneficial on multiple levels. While they obviously provide immediate cash flow – i.e. an additional stream of income – they also offer a multitude of other financial benefits like tax savings, depreciation, and property value growth over time.

The key to successfully generating income with rental properties is to be smart with your time. Don’t try to do everything on your own. Hire a property management company to do the heavy lifting so you can use your time elsewhere.

2. Own Information Products

Want to know one of the best ways to generate income without having to start a business with lots of overhead or inventory requirements? Launch your own information product.

Information products like courses, ebooks, and membership sites allow you to generate income with very minimal expenses. Once the course (or book) is created, you can sell it as many times as you want and the only additional expenses are advertising, hosting, etc.

Owning and selling information products does require some skill, but it’s not as difficult as you might think. You basically need a product, a landing page, and a good ad funnel to drive traffic to this page.

3. Turn a Hobby Into a Side Gig

Do you have a hobby that you absolutely love? It may be possible to turn it into a cash-flowing side gig that provides you with additional monthly income. Here are some examples:

Guitar: Turn your passion of playing guitar into an income stream by offering lessons to students two or three times per week.

Woodworking: Use your woodworking skills to create furniture, wood ornaments, or home decor for local customers.

Gardening: Take your passion of gardening to the next level and sell some of your produce at local farmer’s markets.

Hobbies make good side gigs for one simple reason: you’re passionate about them! When you have a hobby, you enjoy doing it. You also know a lot about it. This gives you a better chance of being successful when it comes to monetizing the gig.

4. Invest in the Right Places

Once your income reaches a certain level, you can start investing that money to make money on your money. One good (and stable) option is to invest in dividend paying stocks. These are stocks that pay you each quarter for the shares you own. In most cases, it’s just a few cents per share (but it all adds up).

Adding it All Up

Generating wealth with multiple streams of income is often a slow build. It could take years for you to find a viable second stream of income. And then it could take several months to create a third. But income has a way of increasing exponentially.

As you acquire more streams, it becomes easier to put that money to work to build additional ones. Before you know it, your money is making money (which is the ultimate form of passive income creation).

You don’t have to add three streams of income overnight. Start slow and let the momentum build into something bigger and better!

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