Maximizing your income with additional sources of income than your primary one can help you build wealth faster. There are many other reasons for finding additional income streams such as paying off debt faster, saving for a big purchase, or providing a sense of security when one income stream is reduced.
Whatever the reason might be, below are some additional income streams that I thought were viable.
1) Dividends
Investing in the stock market to receive dividends is one way to generate passive income. For example, if you want to generate a passive income of $12,000 a year ($1000/month), you could invest $400K to generate 3% in dividends. This alone would not be enough to pay for your entire living expenses, but it can substantially subsidize your costs, especially when combined with other things like rental income (read: Stocks That I Own in My Portfolio, as of 1/30/23).
2) Rental Properties
Rental income is another common passive income stream. It requires a lot of work initially to bring your property in good shape, but once it's ready, the maintenance of the property can be easy with consistent cash flow deposited into your bank account even when you forget (read: How to Buy an Investment Property every 3 Years).
However, not all rental properties are equal as some can generate
more income than others. Consideration should be made such as what type of property you want to own (high rise with less maintenance vs. single home with better profit), the demographics of your area, and the size of your investment (read: How to Pick an Investment Property).
3) Buy a local Business
When you buy a local small business with a track record of positive cash flow, you can hire a manager to run it for you while you make the primary decisions. It can be risky for many reasons such as contracting the market or declining business without an active owner. But if well managed, the potential profit can propel your income stream and wealth greatly.
4) Work additional jobs (Part-Time)
Simply trading your extra time in the evenings or the weekends working at local retail or at a restaurant for example can provide you with a consistent, additional income stream. When you're young and not caring for a family, having a second job can quickly help you build wealth. Check out my other article on additional benefits of working an additional part-time job such as getting an employer discount (read: Discounts on Employer Products)
5) Side Hustle
As opposed to working a part-time job and receiving a steady paycheck, a side hustle is building something for yourself and earning income once you have established yourself. This can include building blogs like this or starting a small business.
6) Help Provide Service
If you have a skill set in something, you can work as an independent contractor for a company or provide services yourself. These can include tax services, real estate agents, mortgage brokers, security services, or an instructor in your skill. Or for the creative type, you can provide your service as a photographer or a videographer.
7) Sharing Economy / Renting Out
In the age of sharing economy peer-to-peer consumption or renting out your goods has been popular. Sites like Facebook Marketplace or eBay can provide you a stream of income for things you want to get rid of. Renting your empty room or an apartment through Airbnb can also be a lucrative business.
8) Influencer
With the rise of social media like Instagram and YouTube, your expertise in any subject or industry to sway a target audience has been a monetizable service. By using certain products or advertising for companies, you can earn money by promoting for them. Through audience engagement in your videos, you can earn advertising revenue through companies like YouTube.
9) Affiliate Marketing
Similar to promoting products through social media, you can refer to a product or service by sharing it on your blog, podcasts, and websites. The affiliate earns a commission each time someone makes a purchase through the unique affiliate link.
10) Drop shipping (eBay, Amazon)
Dropshipping is an order fulfillment method where a business doesn't keep the product it sells in stock but instead the seller purchases inventory as needed from a third party. Sites like Amazon and Shopify have provided platforms for businesses to brand and sell products they believe in.
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