MULTIPLE SOURCES OF INCOME WHY & HOW?

In this current scenario, no job provides you with the best financial security. You have to earn more to pay for expenses. You always find yourself living hand to mouth. No money is left to save for the future or to invest it. Many entrepreneurs, including the general public, are focusing on creating multiple sources of income or doing two part-time jobs at a time. They increase purchasing power and provide greater economic security and stability. Multiple sources of income are the key factor in generating wealth and achieving financial success.

Why multiple sources of income are needed?

You must work hard with little sleep and search for ways to increase your income with personal finance and investing habits. Once you start receiving a consistence flow of profit, you will feel at ease. The more income you get from multiple sources, your chances of becoming a millionaire one day will be high with a better net worth.

Why multiple sources of income are needed?

In this current scenario, no job provides you with the best financial security. You have to earn more to pay for expenses. You always find yourself living head to mouth. No money is left to save for the future or to invest it. Many entrepreneurs, including the general public, are focusing on creating multiple sources of income or doing two part-time jobs at a time. They increase purchasing power and provide greater economic security and stability.

Earning money from many sources is beneficial in the following ways and is discussed below. 

To gain financial security people are laid off unexpectedly and lose their job, not related to their performance. If your full-time source of income is lost, you will have different sources of income to rely on and avoid money stress. So, with these income flows, you feel protected and might have backup money available for your retirement.

The best advantage of having multiple sources of income is that you do not depend on a single source to carry out the cost of living. So, if you lose your job one day or one source isn’t generating enough money, you have other income as a backup to prevent financial problems.

Scaling faster to generate more money

MSI accelerate time for you to generate more money to achieve your financial goal in a short period. If you are smart and are able to handle many strategies to earn through different means, then you are close to the dream life you wanted. The more time and effort you put into creating multiple streams, the greater the chances of earning more. When you earn more, you invest more and likely scale faster.

Helps to clear debt and loans

If you have many debts like credit card due payment, have a mortgage on your asset or property, or have taken a car loan or various small loans, then paying off debt can be difficult to arrange each month. Multiple income streams allow you to pay off your debts faster by paying extra payments on existing debt. 

Working Smartly 

If you have a good income from multiple sources, that means you are working smartly. You can work less and make more money and don’t have to put in extra hours or stress yourself out.

Everyone can not earn an income of six figures in their lifetime, but having multiple income streams somewhat increases your saving and investing rate faster and compound quicker than you expected. 

How to generate multiple sources of income?

In this vast digital age, there are many ways to make a consistent flow of money every month, either in the form of active or passive income. I will recommend to read summary of Think & grow Rich. There are three types of ways to generate revenue from multiple sources. They are commonly known as:

• Active income
• Passive income
• Portfolio income

What is Active income?

Active income is the income you earn directly from doing specific duties or performing any service. The salary you earn as an employee from working in a part-time or full-time job is a form of active income. You trade your time and effort in exchange for the money you earn. Simply, it is a direct connection between work and payment. Examples of your active income are your salary (paychecks), commissions earned, bonuses or promotions. 

Finding multiple sources of income in Active income

It is hard and time-consuming to create multiple sources of income in an active income. There are several ways to search various sources of income in this type of income they are:

• If you switch to a better-paying job (increased salary), it will increase your active income.
• If you get multiple jobs or you get a part-time job while working on a full-time job, your active income increases.
• If you start a side hustle or operate your business, your income/profit becomes a way to increase your active income.
• If you increase the prices of your product or service in exchange for your time and effort, your increased profit also results in increased active income.

What is Passive income?

Passive income is that income in which you earn money without putting any effort directly at work or the income from any assets without trading your time or service. Passive income does not require your active participation. For example, if you rent out your property or a room, you receive rent (money) each month without making more effort.

 Finding multiple sources of income in Passive income

• If you have spare cash in your bank account, you can utilize it by investing in savings schemes or using compound interest to increase your passive income.
• Use an affiliate marketing strategy to become an affiliate for a product or service to increase your passive income.
• An excellent example of passive income is opening an online store, where you work in the beginning to build a website, upload your products for sale, and promote them. The income generates later when people purchase products from your online store. 
• You can use social media platforms like YouTube, Instagram, Facebook, and Tic Toc to earn passive income by making good clicks or videos.
• If you’re an expert in editing photos, then search suitable channel to offer your services and earn more passive income.
• If you’re a great writer, start blogging or freelancing in your favorite niche. You can also allow ads to display on your web page or blog.
• You can teach a course online, do workshops, write an e-book, sell photography online, create an app, give product reviews, write a digital guide, and also sponsored posts on social media. These all are means to increase your passive income.
• Try peer-to-peer lending as a side hustle and lend money to close people or small businesses by analyzing risk factors.  

 What is Portfolio income?

It is the type of income you earn from investing. Your investment grows over time and increases your portfolio income. You can increase portfolio income by  these following methods:

• Purchasing government bonds is a safe investment mode that will generate interest. 
• If you invest in a company that is going profitable and pay dividends to its shareholders, you can receive hundreds or thousands of dollars each month.
• You can also invest in mutual and exchange-traded funds (ETFs) to earn income slowly over time.
• Investment in debentures is unsecured and involves high risk, but they offer higher interest rates than bonds. 

 You can use a combination of these different methods to increase your income and show a nicely diversified portfolio. By doing so, you will have multiple sources to generate income side-by-side.  Firstly, you should search for which type is more convenient to you while considering an investment.

Or generating money from passive income is more appealing, then you consider those options instead. Good Luck!