Having multiple streams of income means that a person is receiving income from several residual or passive income streams at once. Residual or passive income is income that a person earns without directly putting in work. This could be from a product that they sell online and collect sales revenue from, or it could be from property that they own and collect rent payments on.
While they may have to put in some up-front work, they do not need to put in direct work in order to make an income. In other words, they could go on vacation and that rental property or online products can continue to make money for them.
Most people who have passive income streams have found that once they have one income source up and running, it is easier for them to create multiple income sources. These are often referred to as multiple streams of income. Check out additional small business finance information.
What are Some Multiple Streams of Ideas?
You could have multiple streams of income from having multiple jobs at the same time. This might mean you have a 9-to-5 office job and then you drive for Uber in the evenings. But when most people are looking for multiple income stream ideas, they are focusing on residual or passive income streams. Here are some of the best multiple streams of income ideas.
How to Create Multiple Streams of Income
Online Presence and Affiliate Marketing are Great Income Streams
With online and affiliate marketing, your main goal is to create an online property that receives a lot of traffic. When most people think of creating an online presence and online income streams, they think about creating a blog. This is one of the best ways to create an online property that receives a lot of traffic. But there are plenty of other options as well. An active social media page or YouTube channel also can be a great online property.
You want to pick a platform that focuses on your skillset. If you’re great writer, then you probably want to go with a blog. If you’re photogenic or good with video, then perhaps a YouTube or Instagram account is the best way to go. And Facebook is a great way to combine both visual and written content.
Once you have a large enough following, you can start to monetize that traffic and use your platform as a passive income stream. You can do this by selling your own products, or by selling other people’s products through affiliate marketing. As an affiliate, you receive a small percentage of every sale on someone else’s website that is generated from the traffic that started on your website or platform. You also can make money by allowing ads to display on your content. This is how most YouTubers make money.
Property Rental as an Income Stream
Property rental is a great way to collect multiple streams of income. With property rental, you put down either your own money or a loan to buy the property. You’ll then decide if you need to invest anything more in the property to increase its worth. Then you’ll start renting it out and your rental will become a passive income stream.
Here’s an example of how this income stream might work. You buy a rental property for $100,000 with a bank loan. Your monthly payment on the loan is $1,000. Your costs to maintain the property are $200 a month. You charge $1,800 a month to rent the property. This means that you’ll make $600 a month in profit on the property.
You don’t need to be a handyman, either. You can hire companies to handle the maintenance and repairs on the property.
There are a few downsides to this type of passive income stream. You need a lot of money for the initial investment. It’s also possible that the property value could diminish in the area and you won’t be able to get the amount of rent you need. It’s also possible that there may be some downtime where nobody is renting the property.
Dividends as Passive Income Streams
When most people think of investing in the stock market, they think of the traditional buy low/sell high methodology. That can be a good attitude for day traders or retirement funds. But, if you’re looking to collect passive income streams, then you should focus on stocks that pay dividends.
In a nutshell, when a company becomes profitable, it will have a few options as to what it can do with its money. One of these options is to give money back to stockholders. This is called a dividend. Not all companies pay dividends to stockholders. But if you invest in the right companies that pay out dividends, you could find yourself receiving a check for a couple of hundred dollars or even a couple thousand dollars every month.
Do Millionaires Have Multiple Streams of Income?
Yes, millionaires do have multiple streams of income, but not in the way that many people think. There’s a myth running around the internet that the average millionaire has seven passive income streams. This is often misconstrued, and people then think that millionaires have a vast array of different resources that provide them with multiple streams of income. This isn’t the case. Usually, when someone becomes proficient with one type of passive income stream, they typically reproduce income streams with slight variations.
How To Create Multiple Income Streams
If you’re looking to collect multiple streams of income, then you may be operating under the false idea that you need to have a diverse array of different income streams. As previously mentioned, there’s a myth that the average millionaire has seven streams of income. There’s no truth to this. But, if you’re looking to gain financial prosperity by having multiple streams of income, then you first need to start with one stream of successful residual or passive income.
What you want to do is choose a passive income stream that you can be successful in and make it profitable. Perhaps you’ll do best with buying rental properties. Once you get a successful rental property, you probably don’t want to go and start a blog. You want to buy another rental property. This is where people get confused. They think they need multiple income stream types. That’s not what you need. You just need to find a passive income stream that you can be successful with and then figure out ways to reproduce that stream over and over again.
Making residual or passive income with multiple streams of income is a very appealing prospect for many people. The idea of going on vacation and coming back to find your bank account replenished is something that most people think they could only dream of. But, thanks to the internet, creating multiple streams of income online through blogging or affiliate marketing, or learning the ins and outs of property rental and the stock market, is now easier than ever.