Building multiple income streams is the first step in your journey to financial freedom. This additional source of income can help you pay off debt, invest more money, or pad your savings, all of which should be on your path to financial freedom. Creating additional income streams can be more simple than you think and not all of them require a large initial investment. In this post, we’ll explain 7 streams of income you can start building today and how to get started!
7 Streams of Income You Can Start Today
This is a guest post by my new friend, Forrest from donotworkanotherday.com! Forrest is a personal finance, entrepreneurship, and investing enthusiast dedicated to helping others obtain life long wealth. He owns several different blogs and is also passionate about health and fitness. This post contains affiliate links.
1) Dividend Income Investing
One of the easiest and quickest ways to start building a passive income stream is through income investing.
Passive income is defined as “earnings derived from a rental property, limited partnership, or other enterprises in which a person is not actively involved”. This effectively means that you will bring in a source of income without having to work a standard set of hours. This doesn’t mean you’ll become a millionaire overnight, however. You must give your investments time to compound in order to watch the earnings stack up.
The theory behind income investing is quite simple.
Income (or dividend) stocks will distribute their profits through dividends. You can use these dividends to then purchase more of the stock and in return, receive an even larger amount of dividend income.
It is common for these stocks to offer dividends that amount to roughly 2-5% of the stocks’ price annually. You will find that dividends are typically paid quarterly, giving your income stream a chance to compound 4 times annum.
2) Short Term Rentals
If you own a home or live in an apartment, there’s a good chance you might have an empty room that is hardly ever occupied. You can use this room to make money. You can rent out rooms on sites like Airbnb or VRBO to create an extra income stream earning anywhere from a few hundred to a few thousand dollars per month, making it worthwhile.
Want to make even more money?
If you have a place to stay locally, you could consider renting out your entire living space for even more money.
Be sure to check local laws and restrictions before listing your space to avoid any potential fines. Some states and regions have different laws than others. You should also consider the fees and cleaning costs that come with renting out your space when determining how much to charge.
If you own a vehicle and have some extra time, you could consider driving for ride-hailing apps like Uber or Lyft. You can expect to make anywhere from $8 to $15 per hour of driving after fees with some locations making even more.
Besides the commission you will receive for the ride, you can also earn tips for your service. Those who offer guests exceptional service can make much more than the normal driver. Even if it’s just a couple of nights per week, ride hauling can be a great income stream to boost your income.
It is common for these sites to have restrictions on the age of the vehicle and you must have a valid driver’s license to drive, so be sure to review all of the eligibility requirements to see if this is a realistic option for you.
Are you passionate about a topic and want to teach others all about it? Great, blogging could be in-store for you! While it’s difficult to become profitable quickly, the earlier you get started the longer you’ll have to start creating your next income stream. By distributing quality content consistently, you can build a following and begin to monetize your readers.
- You should start by determining the topic of your blog.
- Next, you’ll need to secure a domain and hosting package so that people can access your website.
- Then you can develop your website using either a theme or by using a custom web development agency.
- Finally, it’s time to start posting your articles for the world to see!
Affiliate links, display advertising, and selling digital products are all great ways to make money from your readers. Just be sure not to overwhelm them with advertisements.
TIP: The majority of blogs that are created end up failing! Our biggest advice for starting a blog… Know that it will take time and perseverance! You will have many long nights and working weekends ahead if you plan to build a successful blog.
Related: How and Why to Start Your Own Blog
5) Furniture Flipping
First things first, you don’t have to be an exceptional handyman or woodworker to flip furniture! It’s easier than you might think and can be extremely profitable. There are countless stories of people making thousands per month by flipping furniture and it’s the perfect hustle for your free nights and weekends.
There is a very simple process to follow when it comes to flipping furniture:
- Find the furniture you plan to flip
- Refurbish your furniture
- Sell the furniture for a profit
It’s common to pick up blemished furniture at a local thrift store, garage sale, or via social media. You can then refurbish it to give it a fresh look and sell it via social media or a garage sale of your own. Best of yet, this income stream costs very little to get started. Around $150 should do the trick!
6) Create an Online Store
Another great income stream you can build is an online store.
With today’s technology, it’s easier than ever to build an e-commerce site. Websites like Shopify, Etsy, and others have made e-commerce available to those who wouldn’t otherwise have the resources.
- Start by either finding (or creating) products that you believe have the potential to sell.
- Then purchase your domain and hosting, create your website, and list your products for sale.
You will need to develop a strategy to gain traffic for your website. After all, what good is an online store if no one is visiting it? Whether you chose to promote your store on social media, direct mail, or search engine optimization, you need to have a plan in place.
You will also need to nail down the operational side of an e-commerce store.
- How will payments be processed?
- How will items be shipped?
- Who will do your accounting?
All of these questions need to be answered before you start.
Do you have a digital camera (or a newer phone) capable of taking high-quality pictures? If so, you could use it to create another income stream.
There are many different kinds of photography that you can use to make money.
- Some people prefer wildlife or nature photography
- Others prefer snapping photos of people (portrait photography).
Decide which is your preferred method and start taking photos. Consider using more advanced software like Adobe Photoshop to edit your photos and charge even more for your services.
Another benefit of photography… There are several ways you can make money.
- You can charge clients for your services, or
- You can sell photos online as stock photography through websites like Adobe Stock or Shutterstock.
Both can provide you with a sound source of income and tremendous growth opportunities.
Steams of Income You Can Start Today – It’s Your Turn!!
Creating multiple income streams is critical on the path towards financial freedom and there is an abundance of ways to do it. Dividend investing or flipping furniture or photography, building your next income stream can be extremely simple and doesn’t always have to be costly to start. So, what are you waiting for?
Do you have multiple streams of income? Comment your favorites below.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.