Multiple Income Streams: 7 Ways to Earn Extra Income
It’s just never enough. Have you ever noticed that regardless of how much you are earning, is still not enough? In all honestly, we are insatiable. Nothing is adequate for us human beings. And so, we always want more.
Consider this: when we were earning less, making more money, or getting a raise is the solution we see to end our struggles. However, the more you earn, the more your needs seem to increase.
Reasons such as Low Salary, Expensive cost of living, accumulated debts, or lack of budgeting can cause this financial strain. In this day and time, many people don’t earn enough to cover their expenses and leave some room for savings. To cope, a lot of us have turned our attention to adding income streams.
Cambridge Dictionary defines an Income stream as the amount of money that keeps coming in or produced from an investment, or by selling products or services. Or a flow of money that comes from business, investment, or employment.
Today, I’d like to share with you the 7 most common income streams that can help you generate extra cash flow. Why? Because I was also in a position where I don’t have enough. While I searched for solutions, I read that the most important thing to remember when handling multiple income streams is diversifying your income.
Yes, you can earn more by juggling 2 or 3 jobs. But, you won’t be living life by working non-stop. If you continue to push without managing it right, you’ll tire yourself. Furthermore, it’s not smart or healthy, and you will lose valuable time– for yourself, your family, and for leisure and fun.
To sum it up working more than one job is already tiring and time-consuming. You’re not actually thinking smart or diversifying your income. Adding more of this isn’t efficient. As a popular proverb goes, “Do not put all your eggs in one basket.”
In order to earn extra, you need to have multiple income streams. If done right it will work out to your advantage. But before we discuss the 7 common income streams, let’s first talk about the 2 types of Income streams: Active and Passive.
2 Types of Income Streams
Defined by Investopedia.com as an income stream where you are earning from performing a task related to your job or career. It mostly takes up your time as your involvement is an integral part of it.
According to corporatefinanceinstitute.com it is any money earned in a manner that does not require too much effort. Basically, it is when you are earning even if you are not working full time for it. A type of extra income that you earn while pursuing your primary job, and does not require your direct involvement.
Now, let’s talk about the seven ways to earn extra through multiple income streams.
This is your main source of income or your primary job. Where you trade your time and skills for money. This is where the majority of us started. However, many did not go past earned income.
Solely depending on earned income is constricting as it is mostly enough to survive. Everything, of course, has an exception as there are jobs that actually pay exceptionally well.
Under the category of earned income are the following: Salaries, Bonuses, Commissions, and Tips.
This type of income is also called Business income. In profit, income-you either provide service or make and sell a product more than they actually cost to earn a profit.
For instance, opening a retail store and selling products, offering professional services, and charging for your time.
Another source of income that comes from investing in stocks and owning a share in a company is dividend income.
It’s often a long-term investment to companies that offer higher dividends and stock sharing.
So, how does it work?
A dividend is an amount of money paid to you annually. How much you will receive will be based on the number of stocks you own in a company and the dividend rate the company is giving. The more stocks you own, the more dividends you will receive.
Rental income is a source of income that comes from owning property or something that you rent out.
If you buy a house, condominium unit, or a commercial building and lease them out, the money you earn from them is called rental income. Of course, such acquisition requires a substantial initial investment but is still a great source of additional income.
Capital Gain Income
This is the money you earn when you sell a capital asset. It can be in a form of stocks, a piece of art, or real estate property such as a parcel of Land.
One example I can site for capital gain income is memorial lots. This type of real estate investment is easy and hassle-free with Low Capital Requirement, Low Risk, and High Return.
Moreover, it is affordable and offers a lucrative return. This type of investment has become recently popular among young professionals, millennials, and even Overseas Filipino Workers who are starting up in investing and multiplying their income.
This income comes from lending out your money at an Interest. This could mean a CD, P2P lending, real estate crowdfunding, funding fix-and-flip debt deals, or simply money in a savings account.
An example of this is Time Deposit Savings where you deposit a certain amount of money, keep it in the bank, and withdraw it after a certain period at a higher interest rate than your standard savings account.
Finally, we have royalty income or licensing. It’s where you create a product, idea, or process, let someone use it and in return, you make a small fee.
An example is Burger Joints or Fast Food Companies that franchise their store. They, as the franchisor, earn royalty income from their franchise.
I hope this article has been helpful to you. You may have also realized that we are giving focus on our earned income and have not explored other income streams that can also help you earn extra and build your net worth.
I suggest you spend time and learn more on how you can earn capital gains by investing in memorials lots, as I have found this passive income stream beneficial to me not just in the present but in the years to come.
Similar to all other real estate investments, a memorial investment appreciates in value over time. One I found particularly reliable is Golden Haven Memorial lots. Compared to other memorial companies in my region and the country they offer the highest appreciation rate at 15-20% annually. Making it a value money Investment.
Golden Haven (Golden MV Holdings, Inc) develops the Most Beautiful themed memorial parks in the Philippines. Is considered the Largest Chain of Memorial Parks in the country, with over 33 locations nationwide.
READ MORE: Golden Haven Memorial Park News and Update