How-To Get Multiple Streams of Income in 2023

The importance of multiple streams of income can not be overstated. Having multiple streams of income is an excellent way of safeguarding your life or business and making it stable. Having more than one way of cash inflow is essential if you want to expand your quality of life or the profitability of your business. To do that, you must first learn how many sources of income there are and how you can benefit from those. Only then will you become one with the multiple streams of income.

Types of Income streams

Income streams are classified into three major categories: active, passive, and portfolio. A salary earned from specific tasks or services provided in accordance with an agreed-upon task and within a specific time range is referred to as active income. Whereas passive income refers to the cash inflow, not “earned,” it is the revenue acquired from, for example, a self-sustained side business that requires minimal labor. And last but not least, we have portfolio income which refers to income generated from your investments. These three can be broken down into even more categories, which we do below.

The seven streams of income

The seven main streams of income that almost all millionaires have in common are,

• Earned Income

This is the main source of our income that comes from our primary job. This is usually the highest paying and the most time-consuming. For many, this is the only source of income.

• Profit Income

You use the premise of profit income when you sell a good or service for more than it costs. The transition from earned income to profit income is one of the most challenging tasks, but many employees strive to achieve it.

• Interest Income

You can earn interest income by utilizing the age-old concept of interest. This is a great way to generate a healthy income stream; however, you need some spare cash to earn passively like this. One example of interest income is a high-yield certificate of deposit, which gives you an income stream annually. The rate is determined by the amount of money you decide to invest.

• Dividend Income

Buying shares in a company can make you a part-owner or, more accurately, a company shareholder. This means that you are entitled to dividend payments from that company. Investments in businesses at the right time can produce good passive income streams.

• Rental Income

Another excellent source of passive income is to become a landlord. Investing in real estate is an excellent method to safeguard your funds and increase your rental income. There are two drawbacks to this source of income. First, unless it is a component of an investment program, it requires a sizable initial investment. Second, if you need the money immediately, this is not for you because releasing the money might be expensive and time-consuming.

• Capital Gains Income

Income earned by selling assets is known as capital gains income. Buying and selling stock shares is one of the best ways to profit, but remember to consult with an expert before dabbling in the stock market, as it can be overwhelming to beginners.

• Royalty Income

The income you gain by allowing people to use something unique you created and now own is called royalty income. One of the most well-known ways of making money through royalty income is making music. The musicians are compensated with royalties when an album is sold or played publicly. Many well-known musicians receive millions in royalties for performing their music.

How to Get Multiple Streams of Income  

Now that we are familiar with the different types of incomes, we must focus on how to generate them. The most popular thing that people want their multiple streams of income to be is passive. Here are three examples of what you can do to generate multiple income streams outside of your 9-to-5.

Start a podcast

Podcasts are audio blogs that can help you convey your message to many people. They are an easy way of creating content and helping you generate a steady income stream. They have tons of benefits other than helping you passively earn, including but not limited to,

• It gives you a platform to voice your opinions.
• It helps you market your side hustles.
• It allows you to help others.
• It allows you to connect with other people.

Podcasts are a great way for anyone to get into content creation. Check out some of our favorite resources to help you get started. Still want more information? Well, we go into more detail about the podcast game right here.

Writing a blog

If podcasts are not your thing, consider writing a blog. Blogs will not only help you earn money through ad spaces and sponsored posts but will also provide a great way to market your business and help other people through your content while you are at it. Although you won’t get much money at the start, you will still benefit in various ways. Get started with your blog today! Check out some of these resources to get you started.

Buying and renting real estate

Buying and renting real estate is by far the most common way people generate multiple income streams and for a good reason. What’s not to like? Your money is considered to be relatively safe, you have the ability to generate another income stream, and you own an asset that appreciates over time.  If you want to invest in real estate but don’t have the funds, you should look into Real Estate Investment Funds or Real Estate Investment Trusts. These can get you started on an objectively smaller scale, but do not yield the same benefits as owning tangible real estate. Check out some of our favorite real estate books to get you started!