How To Create Multiple Streams Of Income

Whether you’re an employee or an entrepreneur, you don’t ever want to be limited to just one source of income. I’m sure you’ve heard the saying, “Don’t put all your eggs in one basket.”

When creating multiple streams of income, you want to include a combination of passive and active incomes. Having multiple income streams is extremely beneficial for protecting yourself during any crisis. Not only that, but diversifying your income streams will also allow you to earn more than someone who just has one stream of income.

Here are a few advantages of having multiple streams of income:

Advantages Of Multiple Streams Of Income

– When one part of the business hits a sales slump, the secondary revenue source can help make up for the loss.

– Creates a steadier income picture throughout the year and helps avoid borrowing for regularly occurring expenses.

– Can open up various types of opportunities and doors for you as an individual since your immersed in multiple revenue generating projects.

– Peace of mind when going to sleep every night knowing that if something were to happen to your primary source of income, you still have a backup plan.

Here’s how to create multiple streams of income:

1. Start A Mindmap

If you want to start a new stream of income, create a mind map. Indicate your primary business, product or service that you want to expand or branch off of to generate additional income.

2. Categorize Your Income

In starting a new stream of income, classify the types of income you can generate from your existing businesses. You can offer new products, services, or you can start affiliate marketing or advertising to generate new income sources. Also indicate other possible types, those that you think are less likely to generate income, but just a possible option.

3. Generate Ideas From Categories

Within the categories that you have created, you can come up with possible earning sources. You can start creating a book, coaching, offer courses, freelance services, training, advertising and affiliate marketing services. The possibilities are endless. Not all business will be able to develop ideas, but you as an individual can come up with multiple ideas even if they are outside of your existing business.

4. Focus On Creating A Passive Income Stream

Passive income type of businesses may take a while to generate income, but once created, the income generated will be continuous and your time involvement within the project will be minimal. There are a plethora of ways to create a passive income stream, it just depends on where your connections, expertise and passion lies.

5. Invest Rather Than Save

Many people make the mistake of giving the bank all their liquid cash so that they can earn pennies on the thousands of dollars they keep in their savings account. Don’t fall for that trap! What does the bank do with your money? They take your liquid cash, invest it and get strong returns while paying you pennies on the dollar. If you have cash available that you don’t need immediately, find ways to invest it!

6. Create One Stream At A Time

Don’t be hasty in creating a ton of income streams at once. Take one step at a time and create one at a time. Multiple income streams are often time consuming and confusing. Focus on creating one income stream so that your time and concentration is undivided. Avoid jumping into several ideas all at once.

7. Wait Before You Start Another Income Stream

When you have created an additional stream, wait until it’s up and running before starting another stream of income. You need to ensure that your first stream is systematized and fully running before you start working on your next one.

8. Drop What Isn’t Working

The toughest part of being successful with having numerous income streams is knowing what isn’t worth your time. If you’re spending too much time on an income stream and the return isn’t worth it, drop it. On the same token, if you’re spending a ton of time and you can’t get an income stream off the ground, that’s another reason to drop it. You do not need to keep around non-working income streams. You need your time and effort to be focused on the income streams that generate actual income.

Conclusion

Adding income streams may take time, but when you create them strategically, you can set yourself up for the rest of your life. In this post, I shared how to create multiple streams of income.