Building Wealth with Multiple Income Streams
Here are just a few ideas for alternative streams of income. These ideas assume that you’re also working – or, if you’re married, that at least one partner in the marriage is working – full time.
Start a side business. Most of the time when you think about entrepreneurship, you think of people who are starting full-time businesses. Although this can be a great option if you want to work for yourself and if you have some great ideas for a business, it’s certainly not the only option. You can also start a side business that you work at part time. Some options include selling for larger companies like Mary Kay and Pampered Chef, which are popular options with working and stay-at-home moms. You could also start a business that operated on the weekends, or even just mow a few lawns in the summer. It may seem a little silly now, but the extra money you can gain is immense over time.
Invest in a rental property. This is best done if you can actually buy the property straight out, or at least if you only need to go on credit for 50% or less of the mortgage. Otherwise, you risk losing serious amounts of money on a property that you can’t rent but still have to maintain. Also, you’ll want to invest in property close to where you live so you can stay on top of the property and eventual tenants. Although this is a great time for investing in rentals, keep in mind that being a landlord is tough work, and make sure you’re prepared with your time and money to do this.
Rent out some of your own rooms or space. If you can’t afford a rental property but live in an area of town that will allow you to do so, you can often rent out space in your own home. Another option is to renovate the garage attic to put in another apartment space. Many homeowners make enough to pay their mortgage just by renting to one person at the going rate. Just think how much money this would free up in your budget so that you could put more toward building wealth!
Make your own website or blog. Not everyone who is on the web these days is making a fortune, but many people with interests in specific niche areas are making money by building websites and blogs. There are lots of web companies and books to teach you how to do it. This can take a lot of work on the front end, but once you get it rolling, it can almost be a passive income stream.
Sell your hobby. If you already have a hobby you enjoy and are passionate about, why not consider making money with it? There are plenty of websites these days that specialize in selling handmade goods, and if you’re excellent at your craft, you may be able to get some of your items featured in local shops. By keeping good records to ensure you’re making a profit instead of just covering expenses, you could turn this into a fun, relaxing second business for a little extra income.
Invest so that you can create a passive income. A passive income is one that’s coming in even when you’re not working. The main way to create such an income these days is by investing. Talk with an investment counselor to ensure that you’re investing in conservative, but high performing areas so that you can get the most for your money. Eventually as you build wealth, you’ll be able to draw on your investments for some of your monthly expenses, which could mean that you can take an early retirement or partial retirement!
Keep in mind that one of the keys to building wealth with multiple streams of income is to actually leverage those income streams so they’re helping you as much as possible. This means using credit wisely, checking out all your credit card contracts for potential fees, and paying your bills on time so that your credit score stays high. When you get these things under control, the money you make will serve to build your wealth higher and higher.
Abigail Hall contributes at CreditDonkey with her personal finance insights and tips. Abigail also runs a freelance home business in Indiana with the help of her family.