Generating multiple income streams

[EconDiva]

Do you have multiple income streams? I imagine many people that do use real estate as one of their income producing streams....

I hear this phrase thrown around alot and wonder to myself...what are some of the best ways to generate multiple income streams?

Do you attribute your financial success/security to having established multiple income producing vehicles over time?

[bjl584]

Yes.

I have my primary job as my main income stream. But, I also have a part time job that generates nice cash flow. Then, most of the stocks and funds that I own pay dividends. Right now, if you add them all up they pay around $300 a month give or take, but they are currently all being reinvested.

I've looked into real estate, but at this point in my life it would be more of a pain than anything. I've also kicked around the idea of doing personal training at my gym. I would need to get certified of course, but I could make some nice side money if I did so.

[jpg7n16]

Do you have multiple income streams? I imagine many people that do use real estate as one of their income producing streams....

I hear this phrase thrown around alot and wonder to myself...what are some of the best ways to generate multiple income streams?

I don't necessarily think that the traditional "multiple income stream" mindset is the way to go. Sure people talk about real estate providing income, but those same people don't talk about real estate value fluctuation (aka 2008), foreclosure, damage to properties done by tenants, vacancies.

Real estate is just another investment made outside of an IRA. If you choose to live off the income, rather than reinvest it then it's creating another income stream.

You could also buy a bond and provide additional income. Bond fund. Dividend stock fund. Annuity. There are all sorts of sources for income, each of which has their own set of risks.

So does that mean you have all your assets in a bond fund? No. All your assets in a dividend stock fund? No. All your assets in an annuity? No. All your assets in real estate? No.

I'd focus on having a good EF in place, and saving a good amount for your retirement.

Do you attribute your financial success/security to having established multiple income producing vehicles over time?

No. Not at all.

[Gailete]

We have multiple income streams because we are self-employed, or at least hubby is. I'm on disability. But each different way that we have to earn money helps. We do have a rental property that will be paid off in about 5-6 years, so the income from that will increase the amount of the mortgage that we currently have. Big or little they all add up. None of our ways to bring in money could support us completely.

[tinktink]

I believe not puting all your eggs in one basket is key in this economy because you never know whats going to happen next. I work a regular 9-5 but I also do some internet marketing and sell some SEO services.

[Gailete]

To me hearing 'multiple insomce streams, doesn't mean real estate, and other infomercial late night talk show theories on how to make big bucks. I read a book one that said it is easier to make $1000 with it coming from ten sources than if you try to make that from just one source.

Most people would count their day job as one income stream, their investments as another, rental property as another (if they have that), and income producing hobby, a second job, and with on line abilities-selling on line, writing that helps bring cash through things like Adsense and other affliate marketing, offering your services for pay on line.

My son has struggled over the last couple of years to support hemself and finally bit the bullet to quit his job, three months later he is making twice what he did in his paycheck/timeclock job by his own business, selling on line, sourcing patterns for our sewing business, etc. So with his ingenuity he has found the income streams he needs and knowing him, he will keep finding more!

[SMSF101]

Well working in a company as a regular employee is not enough in today's need to survive in living. It is a must that you have a part time job that will generate your cash.

[Gailete]

Well working in a company as a regular employee is not enough in today's need to survive in living. It is a must that you have a part time job that will generate your cash

I think that all depends on what you are paid and what you NEED to live on from your main job. What you said is the same as those who say that a mother/wife needs to work out as well as the husband to make ends meet. Again it comes down to the incoming pay and the NEEDS of the family. To keep mom home there are many families that are still willing to make the sacrifice to doing without some WANTS. Having the wife/mom stay at home can reap other benefits that help boost hubbies productivity. Before my son took the plunge to work completely on his own, they had made a decision that my DIL would stay home. She had some health issues and was exhausted with trying to keep up with work, school and a house. Suddenly she was just in charge of the house and helping my son with the paperwork of side line businesses. Suddenly he had a nourishing meal everyday, a clean house, clean clothes, etc. all those 'intangibles' that he no longer had to deal with boosted his ability to work. He had been married before, had three jobs and came home and either had to cook dinner or buy restaurant food, do the grocery shopping, cleaning the house, etc. since he had the laziest (and craziest) wife going. She didn't work and did nothing around the house either. Too many forget that having the right kind of home support is an income stream in and of itself. Having someone at home keeping food costs down is a big money saver which means that much less money you need to earn. And the list can go on about the savings that having a person at home can accomplish. Assuming they are willing to think of it as their job.

[surveyspencer]

With job security what it is today (or should I say, what it isn't!), you need to have multiple income streams.

Would you only invest your money in one stock? Of course not. It's the same with your income.

Even if you have a job, you should work to reduce the % of your income that comes from your job. Try freelance writing, dabble in internet marketing or start taking paid surveys.

[Gailete]

With job security what it is today (or should I say, what it isn't!), you need to have multiple income streams.

Would you only invest your money in one stock? Of course not. It's the same with your income.

Even if you have a job, you should work to reduce the % of your income that comes from your job. Try freelance writing, dabble in internet marketing or start taking paid surveys.

I certainly agree, but how many are working crazy schedules, overworking, etc. kids stashed in day care or latch key kids because mom and dad are struggling to maintain a style of living that is filled with WANTS not NEEDS. A family NEEDS time together. Children NEED to spend time with their parents. But is dad is working his tail feathers off to help provide phone contracts that allow all the family members stay in touch, it seems a little ridiculous, went not working those crazy hours would allow the family to stay in touch while being together.

As the years go by I am more and more appalled by what is considered to be NEEDS that wasn't even available 10-15 years ago. And most Americans jump on the latest gadget and soon everyone thinks they need one and those of us that are more frugal somehow get by and never even miss the newest gadget.

[annskilo]

I have started to set aside 1/10th of my income and I invest it regularly in the stock market! there are great informative sites and books out there. Real-estate can be a good investment when done right, with the right timing!! Also you should educate yourself before getting involved in that field!

[Gailete]

I have started to set aside 1/10th of my income and I invest it regularly in the stock market

An inexpensive place to purchase and maintain a stock account is through Sharebuilders.com a partner with ING. A stock purchase in any amount costs only $4 as long as you are willing to have your trdes executed on Tuesdays, otherwise for a more timely trade I think it is around $12. You can buy in any amount and I usually add on when I have scrounged up an additional $100. You can buy stocks and mutual funds. The nice thing is no snooty sales person pushing their flavor of the month, but it does mean you have to do your own research etc.

[surveyspencer]

I certainly agree, but how many are working crazy schedules, overworking, etc. kids stashed in day care or latch key kids because mom and dad are struggling to maintain a style of living that is filled with WANTS not NEEDS. A family NEEDS time together. Children NEED to spend time with their parents. But is dad is working his tail feathers off to help provide phone contracts that allow all the family members stay in touch, it seems a little ridiculous, went not working those crazy hours would allow the family to stay in touch while being together.

As the years go by I am more and more appalled by what is considered to be NEEDS that wasn't even available 10-15 years ago. And most Americans jump on the latest gadget and soon everyone thinks they need one and those of us that are more frugal somehow get by and never even miss the newest gadget.

I couldn't agree more!

If people really evaluated the different between WANTS and NEEDS they'd have a lot more $$$ in their bank account.

[Gailete]

Think about this. My son once told me of a statistic he had seen. On average Americans read ONE 1 ONE, I repeat, ONE book a year. How many of those Americans now own a Kindle, Nook or some other such electronic reader gadget, and then the big question, is why? If on average people are reading only one book then why do they have to buy an electronic gizmo to be able to read that one book? Granted others may read a couple of books a month, but still that is a lot of money to pay to be able to read a book a tad more efficiently. Now I read voraciously and I have severe arthritis which means holding those books is painful and akward with my sore hands. Since I read around 2-300 books a year, a book reader might, in my circumstances, almost becomes a need, but I still don't have one. I'm thinking about it, maybe in a year or two. I note that the cheapest Kindle is now down to $69, so it is getting my ballpark. Part of the 'need' for it is I do book reviews and lately authors have been sending me electronic books to read.

So there are quite a few sensible reasons for why I NEED one, but I know I'm making up reasons. I've been reading for around 50 years now and have survived very well without one. But this is what people do constantly to give them reasons for why they need all these gadgets. I'm just not talking about Kindles either. If it is bright and shiney and everyone else has one, we think we need one as well!

[surveyspencer]

Think about this. My son once told me of a statistic he had seen. On average Americans read ONE 1 ONE, I repeat, ONE book a year. How many of those Americans now own a Kindle, Nook or some other such electronic reader gadget, and then the big question, is why? If on average people are reading only one book then why do they have to buy an electronic gizmo to be able to read that one book? Granted others may read a couple of books a month, but still that is a lot of money to pay to be able to read a book a tad more efficiently. Now I read voraciously and I have severe arthritis which means holding those books is painful and akward with my sore hands. Since I read around 2-300 books a year, a book reader might, in my circumstances, almost becomes a need, but I still don't have one. I'm thinking about it, maybe in a year or two. I note that the cheapest Kindle is now down to $69, so it is getting my ballpark. Part of the 'need' for it is I do book reviews and lately authors have been sending me electronic books to read.

So there are quite a few sensible reasons for why I NEED one, but I know I'm making up reasons. I've been reading for around 50 years now and have survived very well without one. But this is what people do constantly to give them reasons for why they need all these gadgets. I'm just not talking about Kindles either. If it is bright and shiney and everyone else has one, we think we need one as well!

I literally laughed when I read that. 1 book and Kindle sales are through the roof!

And we really can't forget about the library...