Relying solely on earned income is risky. In layman’s terms; living solely off the money from your job can be dangerous. It is risky because one stream of income can dry up very quickly, especially in a recession or downturn.
During a recession, companies start to lose profits. Because of these losses, the companies will have to eliminate jobs. We should have all been able to figure this out. However, did you know this one? When a corporation or company makes these job cuts, it is seen as a good thing on Wall Street? Often, the corporation’s stock price will rise based on this news.
So how are we supposed to trust these big corporations when our interests don’t align with theirs? Their shareholders come first, and shareholders want profits. These are things we need to remember as we send our children out to join this society.
How can we protect ourselves from this conflict of interest? Saving and investing is one way. If we have a 1-year emergency fund saved up, we can use this in a pinch.
On top of this, we need to diversify our income. Having multiple streams of income accomplishes many things for us. It allows us to grow our investments, pay down debt, save up an emergency fund, and give us peace of mind. The last one being the most important. We can sleep easier knowing that one source of income isn’t controlling our entire life.
How to Retire on Dividends
Before I review our 13 income streams I need to convey one important idea. It doesn’t matter how much you make on your sources of income. It is not about the actual amount of money you are making per income source. The most important thing is that you identify an income source, understand how to monetize it, and take action. If we lose our main source of income, the other sources of income can be leveraged or increased as required. Learning how to make money when you do not have a job may not be the best time.
Now, let’s get into the best part. Here are our 13 multiple streams of income. After I present our streams of income I will identify some other potential streams of income I may utilize in the future. I learned about all these potential streams via books, news, articles, and YouTube.
1) Josh Marine Corps career. I joined the military in 1999. I now make a nice six-figure salary. After I retire, I will also receive a healthy retirement. The main reason I keep learning about business, investing, and real estate is because when I pass away my retirement does not go to my kids. They need to have assets, education, and cash flow.
Is Doing 20 Years in the Military Right for You?
2) Kris human resources job. My wife came to America from Turkmenistan in 2006. By 2008, she was eager to work and got a job as a cashier. Over the years she has done various jobs including supply manager, event coordinator, and ID center clerk. Now she makes good money working from home. A perfect life. One that she earned.
3) Josh adjunct teacher. After hours, I teach military personnel online. It is a sweet gig and I get paid $35/hr. When you see opportunities like this, jump all over them. Most people would rather drive Uber than learn how to teach other people.
4) Bond Interest. Bonds are a great, risk-free way to bring income in. Since they are so safe, they do not pay much in interest. However, they are great to have around when others are losing their shirts in the stock market.
5) Fundrise dividends. Fundrise is a crowd-funded real estate investment trust. The best part is that it does not trade on the stock market. You don’t have to worry about losing a ton of money when stocks drop randomly. For this safety, your money is locked down and may take 6 months to get returned, after you ask for it.
6) Dividend-paying stocks. These are the most addicting passive income source I have. It is amazing to watch your dividends increase after each payout. You do have to research what you are buying, however, this is a great way to get a return on your investments. Ensure you have an emergency fund before you start investing.
Stocks vs. Bonds
7) Single-family residence rental income (x2). You really won’t collect a ton of rental income from single-family homes for the first few years. But while you wait for the big bucks, your home will be appreciating nicely.
8) Rental rooms (x2). The king of printing money. If you want to become rich quickly, with minimal effort, then renting rooms is for you. I am a huge proponent of this.
9) Google Ads on Blog. Blogging is not for everyone, however, I find it highly enjoyable. When people come to your blog, they will see ads. You get paid if they click on them. Not bad. It is passive income, but you need to create amazing content for people to seek out your blog.
10) Amazon affiliate marketing. This is when you create a link to a product on Amazon. You then create content and if people like your content, they may buy that product via your link. You will get a cut of the sale.
7 Pre-Steps to Starting a Blog
11) YouTube royalties. If you create content on YouTube, you can get monetized. It takes a while, but it will be worth it in the long run. I haven’t got monetized, however, I know that if I invest any amount of time into this, I would get monetized rather quickly.
12) Amazon book royalties. There are multiple ways to earn income from Amazon books. You can sell your books outright, or put them into a revenue-sharing program.
13) Selling cakes. Kris tried this and it worked out strikingly well. She was able to sell her honey cakes for $30 each. Each cost her $5 to make. However, with more planning, she could reduce this amount. Due to time constraints, it is not something she does all the time, however, if times get rough, it is an amazing source of income. If she clears $25 a cake and sells one every day, that is upwards of $750 a month. Not too shabby.
There are a lot of different ways to create income. I am currently focusing on my blogs and books. However, now let’s take a look at other streams of income I am considering. If you are sitting around thinking of ways to make money, start reading books. Once you understand the concept of money, you will understand how to make money. It will come to you naturally. Do not worry if you are lost, we were not taught to “see money” while growing up. It is a learned habit.
Retirement income. Social security, 401k, thrift savings plan, retirement defined benefit plan, annuity, bonds, and Roth IRA.
Investments. Growth stocks, mutual funds, closed-end funds, bond funds, preferred stocks, and baby bonds.
Real Estate. Multi-family (2-4 units), apartment buildings, commercial real estate, billboards, real estate notes, mobile home notes, mobile home rentals, mobile home parks, self-storage, land-flipping, farmland, land harvesting, home flipping, turn-key investing, investing via a syndicate, hard-money lending, and whole-selling.
Business. Renting RVs, renting boats, renting cars, bed & breakfast, self-storage, Airbnb, t-shirt sells, coaching, mentoring, online courses, consulting, and military preparation.
As you can see, there is an unlimited amount of ways to make money. Start brainstorming and researching. The only thing that prevents us from making money is us. We are our own worst enemies.
I will soon write an article on limiting beliefs. Sometimes we feed ourselves information that prevents our good ideas from coming forth. We need to believe in ourselves. If you would have told me a year ago that I would be writing and reading in my free time, I would have laughed you out of the room. Then I grew up and realized how money is made. Then I wanted to create money from thin air. You can as well. You just have to want it bad enough.
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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