Are you wondering how to create multiple streams of income? Or, would a little extra money rolling in each month make your financial life a lot less stressful? I know where you’re coming from, and I applaud you for your desire to diversify your income.
Spreading your income across a variety of passive and active income streams is a great way to lower your financial risk, as well as increase your wealth-building potential. The problem is that building multiple streams of income requires focus and discipline, which, let’s be honest, is an unspoken deal-breaker for some people.
You know who I’m talking about. It’s that friend of yours that always has an idea of how they can make a gazillion dollars, but isn’t willing to put in the hours and hard work it takes in order to achieve it. They bounce from one shiny thing to the next, losing money on silly investments and far-fetched ideas. Well, this article isn’t for those kinds of people.
The income streams in this article are great options for those who are willing to work for them. Some of them may seem a little obvious, but that’s part of the point. These aren’t far-fetched, crazy ideas, they have been proven time and time again. On top of that, none of them require a large amount of money to get started; just hard work and consistency over time. And that’s what makes them worth your while.
You see, in my experience, the most difficult paths are the ones that lead to the greatest rewards.
So, if you are ready to put in the time, and the work it takes to create multiple streams of income, here are 7 proven ways to do it.
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#1 – Start A Blog (And Stick With It)
I am an unwavering optimist when it comes to starting your own business (especially an online business), so forgive me if I get a little over-excited when I talk about blogging.
If you’ve heard that starting a blog isn’t worth your time, then you were talking to the wrong person. Starting a blog is a great way to earn a part-time, or even a full-time living.
On the other hand, if you’ve heard that blogging is a great way to make passive income, then you may have wildly unrealistic expectations. So, let me tell you like it is. Blogging is anything but passive. It takes a lot of hard work, and in many cases, it can take years before a committed blogger begins to reap the rewards of his or her effort.
However, when you do start making money, it can come in massive quantities.
For example, I follow a number of bloggers that make over 7-figures a year. That’s right, they make more in a month than most people dream of making in a year.
The way I see it, when it comes to making an income, we are all going to end up somewhere 5 years from now. So, why not build a blog, stick with it, and do something that has the potential of generating an awesome amount of money by that time.
How Do You Start A Blog?
If you want to start a blog, you should head over to Bluehost and set up a self-hosted WordPress blog. Now, in the spirit of complete transparency, I am an affiliate of Bluehost, but it’s only because their hosting plans and customer service are nothing short of awesome.
You should also know that I am a professional web developer with a ton of experience building websites and blogs. And after all sorts of trial and error with a number of different hosting companies, I am confident that Bluehost is the absolute best option for beginners.
They have great customer service, an easy, intuitive dashboard, and a step-by-step walk-through that shows you exactly how to start your blog. Plus, if you ever run into issues, you can just call their customer service for help.
Also, if you’re looking for a beautiful WordPress theme for your new blog, I recommend checking out CSSIgniter.com. They have beautifully designed blog templates that can be set up in just a few minutes. (They are well-worth the money.)
#2 – Get A Second Job
If you are looking to add an additional stream of income to your financial life, and the idea of a blog isn’t your cup of tea, then you might just want to get a second job. This is by far the quickest way to make additional income. Though, like every option in this article, it requires hard work.
There’s nothing easy about adding an extra job to a full-time work schedule. But, it can be a great option in many situations.
For example, on this website, we talk a lot about getting out of debt. Though, often, one of the biggest restraints people have when they are trying to become debt-free, is the amount of time it takes to start. It can be frustrating trying to get out of debt when you can barely make the payments, let alone pay extra towards principal. That’s when the additional income stream of a second job can really pay off.
Sometimes you just need a temporary income boost to get you over the hump of some financial struggles. But honestly, once you increase your income, you may end up sticking with it.
#3 – Sell A Product
If you want to create another stream of income, you could always sell a product. Of all the different income streams in this article, I would say that this one comes with the most financial risk, because it often means carrying an inventory of products.
But, like I said earlier, I am an optimist, and I love it when people start small businesses. So, if you think selling a product would be up your alley, then don’t be afraid to give it a shot. Just be sure to take baby steps with this one.
For example, if you have a product you want to sell, don’t start out by purchasing an inventory of 1,000 units. Rather, buy 10, and sell all of them. Then, buy 50 and sell all of those. (You see where I’m going with this.) Inching your way forward will keep you from getting in over your head, and ensure there is a desire for your product in the market.
#4 – Become A Freelance Web Developer
I am a web developer, so naturally, this is one of my favorite ways to create an additional stream of income.
The best thing about web development, is that it isn’t going anywhere anytime soon. Yep, the internet is only growing, search engines are only getting smarter and more important in today’s marketing economy, and you should capitalize on that.
When I first got into web development, like so many other people, I had designs on app development. But after developing a few in-house web applications for my family’s marketing company, I realized that wasn’t my true love.
Rather, I loved WordPress development for bloggers. So, that’s the niche I started to pursue, and it has been a great source of income for me and my family.
My point is, with so many different avenues you can pursue in web development, you shouldn’t have too difficult a time getting an additional stream of income rolling in.
#5 – Become A Freelancer Writer
Through my blogging journey, I have gleaned one very powerful thing: writing is one of the most lucrative skills you can possess. So, if you have a way with words, and the time to do some writing, you should definitely pursue the life of a freelance writer.
I have heard of freelance writers making anywhere from $75 for a short, 300-word blog post, to $1,500 for a thorough, 1,500 word article. And honestly, I’m sure there are people that make way more than that per piece.
Also, if you want to become a freelance writer, I recommend you hone your skills on a blog of your own in addition to all the writing you will be doing for other people. You might as well kill two birds with one stone. I mean, not only are you building a portfolio for potential clients to read through, but you are simultaneously creating a platform that could generate tons of income for you down the line.
#6 – Create and Sell An Online Course
The money some people make by selling online courses is astonishing. Like the bloggers I mentioned earlier, there are many online course creators making 7-figures per year selling their online courses.
And the best part is, there is probably an audience for just about anything you are willing to teach. For example, you could create a course on everything from web development to gardening; painting to woodworking. If you have a skill that you think other people would want to learn, then go create an online course, and start getting the word out about it.
Who knows, a few years from now, you could be one of those course creators that makes millions every year.
#7 – Invest In Mutual Funds
No matter how you choose to create multiple streams of income, you should also invest in mutual funds. Why? Because over time, none of the income streams in this article comes with the same money-generating potential you can achieve through compound interest.
So, no matter where your income comes from, be sure to take a portion of it and throw it into some mutual funds. Then, let it sit there for as long as you possibly can. I’m talking decades.
The whole point of generating multiple streams of income is to build a strong financial future, and investing in mutual funds is one of the best, time-proven, ways to do that. Think of it like this, if you were to invest $1,000 per month — for the next 40 years — into a mutual fund that earns an average of 10% per year, your money would grow to over $11 Million. At that point, if you make 10% in interest, you would be earning $1.1 million per year. Cha-ching!
Final Thoughts
If you want to create multiple streams of income, you should start now. In this article I discussed 7 different ways you can do so, but I’m sure there are plenty of other ways.
The key is to start, be smart, and put in the work. Don’t get in over your head. If you work hard and stay consistent with any of the options in this article, over time, you will start to see some serious income rolling in.
