Multiple income streams: great ways to earn extra money

September 10th, 2009 by admin Leave a reply »

Creating multiple streams of income will have a significant impact on your financial position. For instance, an extra income of $500 a month would help in paying down debt or increasing investments.

One often hears about the critical need of diversifying our investments , but diversifying our income streams is equally crucial, especially in tough economic times. Here’s how valuable even an extra $500 per month can be. Once you read this, you’ll see how to generate extra income, and finally 10 multiple-income-stream ideas below…

Why a second income

I was recently speaking with a friend about the income I earn online, which now is about $1,500 per month. He asked why this income is exciting, given that it is a lot less than I make from other sources. Here are a few different ways to look at an extra $1,500 per month:

  • Savings account. To earn $1,500 a month ($18,000 per year) in a savings account at 4%, you would need to save $450,000.
  • Investment account. To earn $18,000 from investments at 10%, you would need to invest $180,000.
  • Employment . For many, to get $18,000 in raises could take several years of dedicated service to your employer.
  • Financial freedom . Extra income of $1,500 per month could cover car payments, help pay down credit card debt, or cover some or even all of a mortgage payment.

So do you see how even relatively small amounts of extra income can go a long way?

Sources of extra income

A second job at Home Depot or Starbucks can bring in some extra income. But if you can generate multiple income streams, wouldn’t that be better? Consider these issues:

  • Flexible . The ideal source of extra income will allow you to call the shots when it comes to your time. Particularly if you have a full-time job, you don’t want to be tied down to working a set number of hours each week at a second job.
  • Scalable. Income streams that have at least the possibility of generating substantial amounts of income.
  • Sustainable . An ideal extra income source will continue to generate cash even when you’re not working at it. The idea is to build something that can eventually function without you.
  • Enjoyable . Initially, generating additional sources of income will be a lot of work… so you might as well enjoy what you’re doing.
  • Inexpensive . Income-generating ideas that require massive investment should be worth the returns.

A few extra-income ideas

In generating extra income first look at something that suits your interests and personality. You may have certain skills, training and education that will dictate what’s best for you. So while this is not one size fits all, here are some extra-income ideas to consider:

Affiliate-ships. This is easier than anything else and most often free to start. All you need is a good knowledge of web2.0 and internet marketing, which can be learned for about $500 over 30 days. Once you know how to use search engines and social media , you can market anything anywhere on the internet by picking up an affiliate account for it.

Web site design and art. Given the massive growth of the Internet, Web site design is growing by the day. Unless you already have the know-how, you’ll need to spend some time learning a few tools and developing some artistic sensibilities. But there is plenty of help on web site making available, and you can earn a regular income.

Education. Education on anything you know – from recipes to wealth creation strategies – is in high demand in this flat interconnected world. All you need do is package your offering and learn how to reach out.

Real estate alternatives . Though real estate investing requires some cash upfront, the potential is great. The slump in the housing market is an ideal time to buy property. However, getting advice from people who have been there, done that, is critical. Here’s a group of ex-investment bankers and real estate captains that have discovered how similar investments can yield returns that are equal of better.

Virtual assistants and writers. Virtual assistants today can do just about anything for you that doesn’t require their physical presence. Many virtual assistants from places like India are working full time for people in the U.S. The best VAs can earn $30 to $50 per hour. The starting place if you are interested is Elance .

Home business : Ideas and potential for home businesses are unlimited. My personal favorite is network marketing and coaching network marketers to profit online . One of the key benefits of operating a home business is that it gives you time with family and control of expenses and life choices.

Start a blog. To make money blogging calls for very little investment and can be done on your schedule from home. A blog is a almost-free means to ‘own’ your channel to reach various products / services / ideas you believe in to a subscribing audience. Naturally there are commissions you will receive, which is only fair for you have put in the effort of consistently developing the content and the list of subscribers.

As for me, I use all these means… which by definition are multiple sources of income! And when I recommend something – say a Success coaching program (since I am a success coach) – my subscribers get immense value out of it. Many of these income streams are subscription based so the income comes repetitively, making it residual income.

Should you like to explore extra income streams further, here are some other sites to visit:

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