Why should you have multiple sources of income?

Having multiple streams of income is a strategy for building wealth. When you have different incomes, you’re sure of an income, always. Besides, the more the income streams, the more the financial independence and security.

So, how can you build multiple streams of income? 

Let’s dive in.

Step # 1: Diversify Your Investments

Diversification can pretty much be summed as, “don’t put all your eggs in one basket.” To be diversified, however, does not always imply quantity. It also means variety. Have different kinds of investments to supplement your income, such as:

  • Opening a brokerage account, and invest or trade in ETFs and mutual funds
  • Invest in index funds
  • Invest in peer to peer lending companies such as Lending Club.
  • Buy blue-chip stocks: These are sold by powerful companies such as Coca-Cola enterprise, Visa and Intel. The companies pay additional income to their investors.

Step #2: Invest in Real Estate

There are different ways to make extra income through investing in real estate. 

The first one is by owning a brick and mortar property. You can become a landlord and have a steady cash flow from rental income. In this case, there’s a lot involved, such as managing the property and shuffling money around. However, if you’re not available to do the work, you can hire a professional property manager.

Another way is by renting out your property as AirBnB. With this you need to ensure that the property is in a tourist-friendly environment.

If you don’t want to deal with the hustle of buying and selling off property, you can consider investing in Real Estate Investment Trust (REITS) or consider crowdfunding.

You can also make money through wholesaling real estate. Here’s a step by step course guide on how you can achieve that with absolutely no cash or credit.

The real estate world is crazy, with a million different things to figure out. However, you don’t have to figure things out on your own. You can choose to get trained by some of the best trainers in the real estate world. They’ll give you a world-class experience and help you succeed, so that you can get actual results. 

As someone once said, scared money don’t make no money.

Step #3: Provide Services or Sell Products

You can increase your income by providing a service or selling products.

How can you do this?

  1. Freelancing: You can diversify your income by offering similar services to what you do as your main job. Say you’re an accountant; you can open a tax business or a financial consultancy firm. 

There are sites that provide the platform to access freelancing jobs from all over the world such as Upwork, and Fiverr. In these sites, you can apply for jobs such as data entry, virtual assistant, graphic design, freelance writing, bookkeeping, and so much more. This all boils down to your skills set.

  1. Drive for Uber or Lyft: You can earn income quickly through driving for Uber or Lyft. All you need is a car and a clean driving record. The Icing on the cake? You get to do this on your schedule. You just need to download the drivers’ app and sign up.
  2. Answer paid surveys online: websites such as ProOpinion, Survey Junkie, and Outpost will pay you for providing them with your opinion. Of course, this cannot make you rich, but you can sign up in as many sites as possible, to increase your income with those few hundred dollars.
  3. Sell stuff online: selling stuff has come a long way since eBay. Currently, there are numerous sites to sell stuff online for free. Amazon is the most popular. There you can sell books and other used items. Others include Craigslist, Decluttr, OLX, Poshmark for selling clothing and accessories, and many others.

Step #4: Figure Out Your Passion

Maybe you have a passion/talent in creating stuff. You can make your passion make money for you. It could be making jewelry, creating art, writing a book, build an app, making videos for YouTube, photography, or anything else. All these can earn you money if you know where to sell them.

There are plenty of ideas you can consider to start generating extra income. What are you waiting?

Take advantage of them and make some extra money.

Caroline Wanjiru

May 25, 2020