A well-paying job or a successful business will help you live a comfortable life, but if you depend on only one source of income, you will not live the life of financial freedom you aspire for. The more income streams you have, the more financial security you gain.
This doesn’t mean that you should be a jack of all trades or work yourself to the bone doing multiple jobs. There are many ways you can make money without stressing yourself too much, and you can have multiple income streams without working around the clock. If you’re interested in discovering how to do this, then continue reading.
1. Understand the various ways you can make money
Depending on the amount of work you put in, there are three distinct methods to generate money: active income, passive income, and portfolio income. To make the most of income streams, you will need to diversify your methods of generating income, but let’s first understand how each of them works.
- Active income
Anything that requires you to put in time and energy to make money is considered an active income stream, including working as an employee, having a business, freelancing, etc.
Naturally, generating numerous streams of income requires more time in the case of active income, so it’s not advisable to have more than two active income streams lest you wear yourself down. Still, you should have at least one as it is usually a highly dependable means of earning money and for most, it is their major or only source of income.
Tip amounts, commissions, bonuses, and your salary are a few specific instances of active revenue.
The following strategies may help you boost your earned revenue from active income streams:
- Get a job that pays more
- Consider working remotely
- Raise the price that you charge as a freelancer
- Passive income
Income that your assets generate for you without requiring you to trade your time or skills for it is known as passive income. You can have as many passive income streams as you want since, after the initial time and money investment, you then earn doing practically nothing. There are several profitable passive income streams including selling books on Amazon, having a blog, having a YouTube channel, affiliate marketing, investing in real estate, peer-to-peer lending, etc.
- Portfolio income
Portfolio income includes, for example, the proceeds you get when you sell equities in your stock portfolio at a profit. Interest, capital gains, and dividend income are a few more particular types of portfolio income.
By making investments in corporate stocks, bonds, and other kinds of stock market funds, you may expand the revenue streams from your investment portfolio. By doing this, you should be able to increase the value of your assets over time and generate income from your portfolio.
2. Clearly outline your goals
You should decide on the amount of money you want to make in a year. It should go without saying that you don’t have to strive for billions of naira; instead, choose an amount that would allow you to live a more comfortable life than you already do.
After you’ve calculated that amount, divide it into monthly objectives. This is due to the feeling of urgency that comes with short-term objectives, which will encourage you to stay concentrated and productive.
Your ability to dedicate yourself to your work and generate revenue will increase even if you don’t meet your monthly targets. And if you’ve managed to reach your targeted yearly revenue, you’ll have the know-how and self-assurance to aim even higher.
3. Conduct thorough research
There are many different ways to make money, but before taking on any job or making any kind of investment, you should always do your homework.
Before beginning any revenue stream, be sure you understand it and have the time to dedicate to it. Additionally, be aware of the expenses and the anticipated time of profit. Knowing this will enable you to determine if creating an income stream requires patience or whether it is something you should completely avoid doing.
It will also ensure that you are appropriately distributing your time and revenue. For instance, you may want to consider portfolio income streams, which need more money than time, if you work a full-time job in addition to your side business.
4. Begin with a source of income that has the lowest entrance barrier
First things first, compile a list of all the abilities and expertise you have that you may use to earn money from, either via service or product creation. Next, look for income streams that you can rapidly profit from.
Your first business endeavours should be low-risk and should require a low time investment to start. Determining the amount of money you can afford to spend on a particular project is helpful.
Steer clear of those that demand knowledge you lack or have an expensive “pay to play” requirement. After your brainstorming session, you need to be well aware of the lucrative endeavours you feel confident taking on.
5. Create one revenue stream at a time
Simultaneously attempting to develop many revenue sources will lead to dispersing your efforts and exceeding your financial means. Because you have limited time and attention, concentrate on one task at a time and do it effectively.
Every source of income must adhere to a precise, organized plan that produces revenue regularly. It’s important to keep in mind that getting practical experience is more valuable than spending excessive amounts of time watching videos or reading books.
Take action even if you don’t feel fully prepared after gaining some foundational information, and you’ll learn as you go.
6. Take your time and let each stream develop
Building up your revenue sources might take some time. However, if you continue to put in constant work, you will ultimately notice significant improvement.
Money is necessary for certain revenue sources to expand, like investment. Others need time, such as blogging or part-time work. Just keep in mind that your efforts will be rewarded since you are moving toward financial independence.
7. Consider your work-life balance
You eventually want to be able to work fewer hours and make at least as much money as before. Successful individuals place a great value on their time in addition to their financial success. As a result, you should always search for methods to cut down on the amount of time you spend working so you may enjoy life and give your full attention to the things that are important to you.
You probably don’t want to work long hours every day in your ideal life; instead, you could want to have a family, pursue your hobbies, or travel the globe.
8. Assign and automate tasks that take time
There are only so many hours in a day, and maintaining the labor required to earn money will become more difficult the more sources of income you have. You know it’s time to assign part of your work to someone else when you are earning a fair living but yet feel overworked and stressed.
Of course, whatever you are doing has to be lucrative enough to cover your costs and leave you with a healthy profit margin. To locate competent workers, you may quickly visit freelancing markets like Fiverr and Upwork or join forums (like Facebook groups).
As long as you can choose the best among them, there is no shortage of internet marketers, virtual assistants, content writers, SEO experts, and other freelancers willing to assist you in achieving your objectives.
A company model must be broken down into several jobs to identify which ones may be outsourced, along with clear instructions and expectations. Successful job delegation requires thoughtful selection and good communication, but the time and energy you save in the process are well worth it.
Conclusion
It’s a great idea to have multiple streams of income, but you’ll only overexert yourself and give up half-way if you don’t go about it properly. Thankfully, I have highly the most important points you need to know in this article, so you can start making more money than you did in the past.
