Inflation has caused almost everything to cost more over the past couple of years. If you’re feeling the pressure to bring in some extra income, you’re not alone. No matter what your income goals might be, creating multiple streams of income can help you achieve them.
However, figuring out where to start and how to actually create multiple streams of income can be a little confusing. In this article, we share exactly how to different income streams. Let’s dive in!
How to Create Multiple Streams of Income
Investing
A great way to create an additional income stream is through your investment portfolio. Maybe you’re investing in stocks, or you have a portfolio of diversified ETFs. Maybe you’re investing in real estate through a REIT fund. No matter what your portfolio consists of, the goal is to make money.
While you can theoretically earn income when the price of a stock or ETF goes up, it would require selling shares to realize the profit. Instead, there’s a better option. Building a portfolio of dividend-paying stocks and ETFs can help you create a consistent income stream that pays out each quarter.
To get started, use Ziggma’s stock screener to find the best dividend stocks. Once you’ve built your portfolio, use the wealth tracker to keep track of your portfolio and make changes when necessary.
Just remember that building a portfolio of dividend stocks could take some time if you want it to create a meaningful income stream. The average dividend yield for the S&P 500 is 2.91%. While some companies pay more, others will pay less. Based on the average yield, a $1 million portfolio would earn $29,100 per year in passive income.
Also Read: 9 Income Producing Assets to Add to Your Portfolio
Rental Properties
One tried-and-true way to make money is to invest in rental properties. Maybe you purchase a single-family home and plan to rent it out, or you choose to buy a multifamily home, live in one unit, and rent out the rest. Either way, rental properties can provide a steady stream of passive income each month. Of course, it’s important to note that buying rental properties will require cash upfront, but it can be a long-term investment that pays off in the future. Plus, they can also be a big part of building generational wealth for your family.
If you don’t know where to start, it might be worthwhile to connect with a local real estate agent. They will help you find properties, negotiate price, and connect you with a property management company.
Offer Client Consulting
Another great way to create an additional income stream is to share what you already know through consulting services. Whether you work in finance or marketing, you can make additional money by sharing your knowledge and helping companies fill gaps they may have in their workforce.
For example, if you have a background in branding, you can offer branding services to businesses. Often, it is more cost-efficient for businesses to hire a consultant than a full-time employee.
To get started, you’ll want to take the following steps:
- Create Your Packages: Before reaching out to potential clients, you’ll want to create your consulting packages first. What do you plan to offer? Will there be different tiers based on what they specifically need, or will you customize each package to fit your clients? You’ll also want to have an idea of what you’ll want to charge for your consulting – which means you should conduct research to see what other professionals in your industry tend to charge.
- Reach Out To Your Clients: Next, you’ll want to reach out to your potential clients and present consulting services to them. By simply letting them know you’re ready to help, you’ve opened the doors to attracting new clients.
- Create A Digital Presence: While you may be able to simply operate on word-of-mouth, it’s always a good idea to create a digital presence for your consulting services, including a website and social media. This way, businesses can find you who may not have known about your services previously.
Freelancing
Did you know that the average freelancing pay in the United States is $47.71 an hour? Freelancing is a great way to create an additional stream of income, whether you are skilled in web development, graphic design, writing, or any service that can be done remotely. If you have skills you’re not utilizing or selling, freelancing lets you use them on a project-by-project basis. This lets you choose what company you work for, what work you do, and how much you make.
Here are some steps to get started with freelancing:
- Narrow Down Your Skills: Before getting started, you’ll need to figure out what services you can offer as a freelancer. Take some time to sit down and make a list of things you’re good at. Are you a pro at writing, or do you have a background in financial planning? Whatever it is, write it down and narrow down your list to the skills that you can realistically make money from.
- Sign Up On Freelance Platforms: Once you’ve identified your skills, sign up on popular freelance platforms like Upwork, Fiverr, or Task Rabbit. These websites will allow you to create a profile highlighting your skills and services and connect with clients needing help.
- Market Yourself: Don’t just rely on freelance platforms; also market yourself through social media and word-of-mouth. Let people know about your services and ask current clients to spread the word. You can also join online communities or forums related to your niche to network and find potential clients.
Write a Book
Do you have something that you’re extremely knowledgeable about? Maybe it’s traveling with kids or building a successful business from scratch. You can use that expertise to land yourself a book deal with a publisher. If you don’t want to go the route of having a publisher, Amazon gives you a platform to self-publish. Once your book has been published, you’ll earn extra money through royalties and book sales.
Start a Blog
Another way to share your passions and expertise with others is through a blog. While most blogs don’t make much money immediately, they can grow over time and generate income streams by selling advertising to companies or affiliate marketing.
Many bloggers are even looking to expand their revenue streams further by using their blogs as a platform to promote their consulting services or creating online courses they can sell to others.
Affiliate Marketing
Speaking of affiliate marketing. Do you have brands or products that you love using and sharing with your friends? Did you know you could make money by sharing those products and attaching an affiliate link to them? By sharing a special link with your friends, you can earn a commission for every sale made through your link.
You can contact brands directly to see if they’d be interested in affiliate marketing or check to see if they already have an affiliate program. Alternatively, there are several affiliate platforms, like Amazon Associates or Commission Junction, which connect you with various brands and products that you can promote to your friends, on a blog, or with an audience on social media.
The Bottom Line
There are many ways to create multiple income streams, regardless of your skill level. If you’re ready to start making extra income, try out one of our suggestions above and see if you can make it work for you. Remember, with hard work and dedication, anything is possible! Keep exploring new opportunities and growing your income streams to achieve financial stability and success.