I remember the first time I lost my job. The recession was already knocking but hadn’t quite taken up residence within the economy. My boss had summoned me into his office and asked me to take a seat. “We won’t be able to keep you on,” he said.
“But I haven’t done anything wrong,” I thought. As he rambled on about the looming crisis, the words rang louder in my head and I wanted to scream them at him but I couldn’t open my mouth.
It didn’t matter that I didn’t do anything wrong. I wasn’t essential. I was disposable. I was a casualty in the coming recession, which dealt with me in several more ways before it was over.
When my life started to come together 2 tumultuous years later, one of the things I realised was I had to figure out a way to make myself invulnerable to job loss; to remove the power of whether or not I could pay my bills and feed myself from the hands of another human being and put my fate in my hands.
Why Is Multiple Streams of Income Important?
- Expect to achieve financial freedom in your lifetime
- Start making a real plan for early retirement if that’s what you want.
- Pay off your debt faster than you would with a single source of income.
- Save faster for a project down the line such as self-employment, education, etc.
- Take charge of your financial life. You’re not at the mercy of some guy in an office on the top floor.
- Insulate yourself from a sudden loss of income in the future. There’s always one source generating money even when another one slows down.
What Classifies as Multiple Streams of Income?
There are many options for multiple streams of income out there even within your specific skill sets. From my experience, here are the best 5 multiple streams of income:
Content creation, copywriting, copyediting, proofreading, sales letters, white papers, e-books, ghostwriting, etc. all fall into this category.
If you can find a way to attract people to a product that offers value, you will make a lot of money as an affiliate marketer.
3. Online Marketing
Blog management, site management, social media management, online reputation management, SEO, marketing strategy, PPC, etc.
4. Creating Courses
If there’s something you’re incredible at that you can teach and people want to learn, you can create simple courses out of it.
5. Creating Products
Depending on the industry, you can create a product for customers. One resource that’s very useful for learning how to do this is The 4-Hour Work Week by Tim Ferris.
I created and launched a beauty product through one of my sites without touching any inventory (more in future articles).
Do not stop at this list though. Whip out a flip chart and tap into your imagination. If you can find a way to deliver something affordable that makes people’s lives easier or better, you have a winning idea.
6 Best Tips for Setting Up Multiple Streams of Income
Don’t try to learn and do everything that catches your fancy. You will spend all your time learning and never set up anything. If you do manage to set up, it will be very difficult to keep track of everything and make it work.
2. Be Choosey
Pick 1 – 3 skills and develop them. What’s new out there? Update those skills. Be the best you can possibly be. Don’t have any skills? Find something you think is interesting and learn how to do it.
3. Follow Your Passion
Do what you’re passionate about. It takes a lot to set up multiple streams of income and keep going until it pays off. My first month of running one of my blogs, I made $5 but I loved the topic and stayed with it.
I’ve come a long way since those days. If it’s not something you’re passionate about, you’re likely to give up along the way.
4. Less is More
Choose streams of income that are as passive as possible meaning you set it up and it will continue to generate money for years with minimal input.
5. Create Value
Differentiate yourself. Don’t follow the herd. You cannot replicate someone else’s idea. You can only learn from it and use that knowledge to carve your own niche.
6. Multitasking & Time Management is Crucial
Become a boss at multitasking and time management. You’d be amazed how much time you can fritter away sitting in front of a computer thinking you’re working then realize at the end of the day you actually achieved nothing.
It’s easier to start setting up when you’re still employed. That way, you can test out your ideas and see if they’re viable without having to worry too much about where money is going to come from. I did this with three websites and eventually wrapped up two of them and focused all my efforts on one.
I am currently compiling all I’ve learned and some of the best methods for setting up multiple streams of income in The Passive Income Method: Make Money While You Sleep. You can learn more and sign up to be notified once the course is live HERE.