If you’re like most people, you only have one source of income: your job. What if you had many sources of income? How would you feel if you had money coming in from investments and freelance work besides your full-time salary?
By having a variety of income streams, you can smooth out financial bumps in the road. Let’s say you lose your job. If that’s the only way you make money, you’re in trouble. However, if you have other sources of income, you’ll be much better off.
You can also achieve your financial goals more quickly by diversifying your revenue. Having many income streams can be immensely beneficial if you’re saving for a down payment on a house or retiring early.
There are endless ways to create a variety of sources of income. Here are some examples.
Create Multiple Investments
If you’re already a high earner and you spend all your time working on one business model, focus on building a portfolio of investments.
There are a few things you should keep in mind if you choose this route:
First, high-net-worth wealth management advisors typically recommend balancing your portfolio across a variety of asset classes. Make sure you diversify your earnings by investing in stocks, bonds, and other assets.
Second, diversify the length of your investments. Although short-term investments may be more volatile, they can also provide high returns. In comparison, a long-term investment may be more stable, but its returns may not be as high.
Third, remember purchasing multiple stocks or other asset classes to sell at a higher price in the future isn’t a sprint–it’s a marathon. It takes time and patience to build a diversified portfolio that will provide you with income. However, the rewards can be well worth the effort if you persist.
Build Multiple Businesses
Having more than one business has many benefits. If you work full-time, your best option is to build an online business during your free time. It is essential, however, to learn how to improve your productivity while working from home. If you need some extra cash to get a business up and running, then you can get an installment loan from a company like Western Shamrock. This can give you the short-term cash you need to invest in a new business.
You can start a blog and use it to sell products or services. It is also possible to start an online course or write an eBook. Some people prefer to buy a franchise or other out of the box business. Regardless of your choice, make sure to pick something you’re enthusiastic about, so you’ll be motivated to stick with it. It takes time and effort to build several streams of revenue, but it’s well worth it.
Set SMART Goals for Prosperity
How do you set goals to generate a variety of income sources, whether from investments or business ventures?
Identifying your current sources of income is the first step. By doing this, you will have a baseline to work from as you develop new revenue opportunities.
Setting SMART goals is the next step. A SMART goal is Specific, Measurable, Achievable, Realistic, and Timely.
By using this acronym, you can develop clear and actionable goals. For instance, a specific goal might be to earn $500 more per month from freelance writing within six months. A measurable goal would be to track the number of hours spent writing and earnings each month. An achievable goal would be realistic given your current employment and commitments. Lastly, setting a time-bound goal will keep you motivated and prevent procrastination.
Start Creating Your Diverse Sources of Income Today
By building several businesses and diversifying your portfolio, you can improve your financial stability and quality of life. For instance, if you have a full-time job and earn paychecks from freelancing as well as renting out property and investing in dividend-paying stocks, you are less dependent on only one way of getting money. Having more than one source of revenue will keep you motivated and inspired because you can weather economic downturns. You’ll have many options to fall back on if one income model dries up.