Financial security is something everyone is working towards. Whether you know it or not, the mere fact that you have a job means that you’re interested in being able to put food on the table and keep that roof over your head. But what would happen if you lost your job and weren’t able to find another fairly quickly? How long would it take before there was no cash to pay the bills and you’d have to start drastically changing your lifestyle. For those that have multiple income streams, the threat of losing a job isn’t as terrible as those who rely on one source of income. Yes, they may have to make some adjustments in their spending habits, but they could easily rely on the other income streams to cover the bills while they look for another job. That sounds a lot more pleasant than frantically looking to find a job so you can keep a roof over your head.
If juggling multiple jobs seems over the top to you, don’t worry. Having more than one job isn’t the only way to create multiple income streams. Multiple income streams aren’t just for the hustlers, the online biz guys, or those that don’t like working for the man (big business or the typical 9-5 job). Multiple income streams are becoming more and more popular and are a great way to provide financial stability for anyone.
Ideas for Passive Income Streams
- Interest from the bank ( look for high interest savings accounts, i.e. if you’re not getting at least 1% interest from your savings account, it’s time to start shopping around)
- rental income on an investment properties
- freelance income
- extra shifts at a local store during the holidays
- a side business
- services you render to neighbors ( dog sitting, house sitting, yard services, etc)
- dividends from stocks
- something related to a hobby or passion – umpire for city league games, or teaching a pottery or gardening class at the rec center
- marketing your skills – fixing computers, bikes, cars or massage therapy, hair cuts, etc.
- participate in surveys and paid studies
- flea markets (sell your stuff, or collect other’s people stuff and sell that)
How to get started
It really depends on what type of income stream you’re lookin to add to your setup, but these general rules ought to get you thinking on how to add a side business or even get you started investing.
- Don’t quit your full time job or whatever you’re currently doing…just yet. You may want to cut back on your hours at your current job if you’re starting a side hustle or taking on ana additional part time job. You may even want to cut back the amount you’re investing in yoru current stock choices or funds, but whatever you do, the first step requires that you don’t move all your eggs to one basket (especially the new one).
- Take advantage of your hobbies and skills. This is incredibly important if you’re looking to start a small business, sell online, or offer some type of service to friends, family, and potential customers. We recommend making al list of all the skills you have that might be of use to others. Do a little research online to see if there are licenses or advanced training you need to be able to offer these skills legally. Check out the going rates and pricing structures that others offering these services are using. If you’ve already got a side hustle, consider what products or additional services you could offer to increase your income. You might also want to consider what locations, events, or places you could market and sell your products and promote your business.
- Set a plan on how you’ll start and grow your income stream. It seems simple enough, but we find that all too many people start something and don’t ever get far enough into the process to really see the fruits of their labor. Once you know how you want to get a income stream going, outline a plan for growing your income stream. Plans for growing your own business are vital to your success, but they also come in handy as you set out to start investing in rental properties or even the stock market. Knowing how much you’re going to invest, or how you’re going to build your customer base are necessary to make sure your additional income stream will be a success.
What type of income streams do you currently have or are considering? We’d love to hear about them in the comments.
Ben Sutton is the founder of Mazuma USA, an accounting firm providing tax, bookkeeping and payroll services to small businesses. Since founding Mazuma, Ben has established himself as an expert in the small business world. He’s still driven by that same desire to provide accounting help to all small businesses – from photographers, bloggers and creatives to lawyers, doctors, and dentists, everyone needs affordable accounting help. Ben is a Certified Public Accountant, and a member of the American Institute of Certified Public Accountants. But Ben considers his greatest achievement and credential to be his happy wife and four children.