The internet has made it easier, faster, and more affordable to generate multiple income streams. Adding more income options to your existing business doesn’t have to be overwhelming, and the benefits of having several sources of income can make it worth the effort.

If you’ve recently lost your job, home or a family member, don’t forget that there are still things in life you can hold on to that no one can ever take away from you, like your experience, your expertise and your skills.

Your “added value” resources and are worth investing in right now. Use those skills to begin building multiple income streams to keep yourself afloat.

• What are the Pros and Cons of Multiple Revenue Streams?
• How to Create Multiple Revenue Streams
• What are the 7 types Streams of Income?
• How many Revenue Streams should a Business have?
• What Sources of Income do Millionaires have?
• What Are Multiple Streams of Income?
• Multiple Streams of Income Ideas
• How Can I Create Multiple Streams of Income in my 20s?
• How do You Get 7 Streams of Income?
• How to Create Multiple Sources of Income in India
• Multiple Sources of Income Quotes
• How I Built 7 Multiple Streams of Income
• How Can a Beginner Make Passive Income?
• Passive Income Stocks

What are the Pros and Cons of Multiple Revenue Streams?

Beyond making more money, there are several great reasons to consider building more than one source of income, including:

• It’s easier to create several small income-producing streams over one large one. For example, it’s easier to create three streams that earn $1,000 than one stream that earns $3,000.
• It reduces the risk of being left without any income. If one source of income drops, you have other sources to help you get by. Especially in home business, which has an ebb and flow, you can offset the dry spells by having another source of income.
• It helps you avoid boredom at work by giving you different things to do every day.
• You can create income streams based on your interests, talents, and passions.

Cons

Of course, there are also some challenges with having multiple income streams:

• It’s difficult to keep on top of all tasks that need to be done for every income stream. 
• It’s a balancing act to give enough attention to each income stream to keep them each growing and profitable. Barbara Winter likens it to plate spinning.
• The start-up process for each income stream can be time- and energy-consuming.

How to Create Multiple Revenue Streams

Even with the challenges, the benefits outweigh the potential problems, especially if you build additional income related to your existing home business. Here are some steps that will help you add more income streams to your home business.

Read Also: Analytical Insights on how to Maximize Website Revenue Stream

One way to start is by creating a mind map. Take out a piece of paper and write your main business product or service in the middle to start a mind map.

Next, create four spokes coming out of the middle, titled “products,” “services,” “advertising/affiliate,” and “other” off of your main product or service. These are categories of types of income you can potentially generate off of your existing business.

Create more spokes off of each of these categories with ideas on how you can make money at them. Earning sources include books, online courses, merchandise, coaching, freelancing, speaking, training, selling advertising, and affiliate marketing.

Not all businesses will be able to come up with ideas for each spoke, but every business should be able to develop extra income streams from their home business idea.

Focus first on passive income streams that you create once, but they continue to generate income. For example, writing a book is a passive income stream. You write it once and sell it over and over. The word passive is a little deceptive because you need to write and market the book.

Nevertheless, compared to non-passive sources of income, which you need to do over and over to make money, such as providing a service, passive income streams require less time once they’re created.

Other forms of passive income include other written works (i.e., courses), audio or video creations, affiliate marketing, licensing your idea, franchising, or continuity programs (i.e., memberships).

Next, focus on income streams that can expand your business. For example, public speaking or teaching can create additional income, as well as generate new clients. Another option is freelance writing, in which you’d get paid for an article that would also promote you and your business.

Below are additional steps to take

1. Create a Course or Membership

Got a knack for gardening, physical fitness or building sales funnels? Leverage your own skills and expertise around any niche skill with your own course or membership group on social media. Be sure that whatever you create stands out. Do something no one else does.

“Getting set up involves an initial small investment, but it can quickly pay for itself as people begin to pay you to learn what you know,” says Norris. “Once the course/membership is created and online, you can earn passive income off of it forever.

If ten people, for example, sign up for your $97 course every week, you’ll earn an extra $50k per year. This year, my husband and I created a membership group that offers year-round support to entrepreneurs and is on track to bringing in five figures of passive income for us every year.”

2. Teach Your Skills Live

Let’s say you’re talented when it comes to personal development or interior design, but that’s not your full-time pursuit. You can still teach that skill one-on-one or in a group setting online. Ultimately, this is a great way for people who have specialty knowledge to make passive income.

You create value for the audience that follows you, which builds trust, and then people will want to learn more from you—and will be willing to pay you for it. The goal here is to monetize your efforts, perhaps by including paid ads on your website or by selling offers to people in your Facebook group. 

“To get started, create your own website with a blog or vlog. Utilize Facebook groups and other social media to build a following, directing people to your site,” notes Norris. “Websites are easy to build and many companies offer cool templates and support. We created monetized websites that teach people the skills we have: ours are nutrition, fitness, health and wellness.”

3. Partner Up

From olive oil to cosmetics to travel, there are an endless array of companies that you can become an affiliate for. You’ll get paid for referring your friends to the products that you use—and you don’t have to have a high-traffic website to make this work. You do, however, should have an established following of at least 500 people on social media. 

“You’ll want to partner with and promote brands you truly trust and believe in. Remember, you’re creating value for your followers by providing them with vetted opportunities. As a bonus, you’ll receive income for very little effort. While these are usually one-off deals, they can pay long term passive income depending on the offer and the timing.

To get started, come up with a list of products that you use every day and are passionate about. Then go to their websites and search for affiliate opportunities,” suggests Norris.

4. Spend Smarter

Now is the time to invest any money you can because a downward tick in the market means stocks are essentially on sale. By putting some savings into investments, you’ll create a new stream of revenue that you didn’t have before.

If you don’t have extra money laying around, take a look at your expenses and see where you can find, say, an extra $50 a month by refinancing your car or an extra $100 a month by lowering your insurance. After working with a money coach, I was able to cut $500 a month from our normal spending that we could then channel into investing.

5.  Try Relationship Marketing

“Relationship marketing companies provide many of the benefits of owning your own business for a fraction of the cost. It’s your business. you own and run it – but they supply the product along with training on business building, best practices, and websites (sometimes for a nominal cost.)

What’s more, many companies are offering free memberships right now so that your start-up costs will be low,” says Norris. “In a typical business, you trade time for dollars. You get paid for what you do, and if you don’t work, you don’t get paid.

In relationship marketing, once you build your business, you get paid passively by sharing your experience with the product or service others are seeking. You’ll want to choose a company that you trust and believe in, so you can honestly recommend it.” 

No matter your current situation, you can build one or more of these income streams now. The sooner you start, the easier it will be for you to weather any future financial storms.

Choose and set up one income stream at a time. The planning and launching of a new stream is the most time-consuming. Avoid the temptation of jumping into several ideas at one time, as putting your focus into many areas at once will dilute your efforts and slow you down. 

Work to have systems, schedules, and tools in place to help you manage existing income streams, so you don’t become overwhelmed.

You want to give your additional income streams the time and effort needed to get them running, but if they don’t start generating income, or if you hate it, then drop them. 

Although adding income streams takes time, creating them within your current business is faster and easier than starting completely new ones from scratch. This method of generating extra sources of income works well for any size business in any industry.

For example, Amazon.com started by selling books. Today, it sells millions of other products, including its own products, is a print and digital publisher, offers media streaming services, offers business services, and more. 

Many service-based business owners add coaching and books to their income streams. Bloggers who start with affiliate marketing often create their own books and courses to add to their income stream. You can create additional sources of income for your business, as well.

What are the 7 types Streams of Income?

here are some of the most common types of streams:

• Earned Income – This is your day job and most people’s primary source of income. this one’s easy to understand and most people’s primary source of income. You trade your time for money.
• Business Income –You own a business. You either make and sell something, or you provide a service.
• Interest Income – This is income you make from lending your money out. This might mean a CD, P2P lending, real estate crowdfunding, funding fix-and-flip debt deals, or simply money in a savings account.
• Dividend Income – This is money that’s distributed as a result of owning shares of a company.
• Rental Income – You own something and you rent it out. Probably the most common is owning a rental property, such as a multifamily apartment building (renting apartments in exchange for monthly payments).
• Capital Gains – This is money earned when you sell an investment, like stocks.
• Royalties / Licensing – You create a product, idea, or process, and you let someone use it. They pay you a small fee every time they do.

They are better explained below

1. Build a blog

A blog helps you build passive income that can you can grow over time. For instance, you can generate income from ad sales and affiliate marketing. That’s how food blogger Meeta Aurora generated over $5,000 monthly even while working at a full-time job.

You can learn and apply a new skill, such as ad sales or affiliate marketing, to scale your blog using platforms such as Ad Thrive and Amazon Associates, so you can leverage various income sources within your blog.

For example, you can incorporate affiliate links within your blog posts to earn a commission from the sales of products you promote. You can also scale your blog by offering other products you’ve produced, such as an ebook, templates or guides.

2. Earn income from freelancing

Freelancing is also a great way to hone your skills or develop new skills while earning income. For instance, you can freelance as a content strategist or social media manager and apply the skills you are learning to the real world.

You can work as a seasoned developer or specialist and charge higher rates for your services and even scale your business by hiring additional contractors to take care of small tasks to help your business grow.

3. Reel in royalties

Licensing a product or invention you own can bring in income via licensing fees and royalties that can last for years. It’s also a quick way for your product to reach your intended market. For example, you can license the use of a consumer product you created for an average 3 percent to 5 percent royalty rate based on your industry.

You can license an app or create an app with the goal to bring in royalties as your app’s audience grows. Royalty rates can be even higher in technology-based industries with 80 percent profit margins, according to research from The Journal of Biolaw and Business.

4. Keep up with capital gains

Capital gains provide a way to earn income from assets, including stocks, real estate and even cryptocurrency. That’s because this type of income increases over time, and it’s how some of the top 1 percent of the wealthiest people in America made income in 2017.

For instance, you can earn income from selling a home you own, since real estate typically appreciates in value over time. You get to control when you sell your home so that you can take advantage of capital gains tax rates that are in your favor.

5. Pull in profit from your business

A business offers profit potential that you can grow over time, and you can start doing this as a side hustle even while you work as an employee. A Bankrate study noted that over 44 million people in the United States had a side hustle.

The study also revealed that earnings from the side hustle bring in at least $500 or more for 36 percent of 86 percent of the study’s participants.

The term also covers side businesses for marketplace platforms, such as eBay or Etsy, where you can sell merchandise or digital products. For instance, if you create clothing or shoe patterns, you can sell technical design packs, templates and the end product on Etsy.

6. Reap rewards from rental income

Rental income makes a great option for those who have a second home, a vacant property or extra space in their current homes. For instance, you can earn income from short-term rentals, such as renting out a room or your entire home via Airbnb, HomeAway and other vacation rental property platforms.

You may even earn income tax-free if you rent out a room for less than 14 days while you live in your home. Consider also renting out a spare room or your home for long-term property rentals to solidify passive income for at least one year.

You can also earn real income from renting out commercial property or land spaces that you own, such as a beachfront lot or parking lot.

7. Leverage your earnings by lending money

When you lend money, you can earn passive income from the interest you charge borrowers. Consider using peer-to-peer lending platforms, such as Lending Tree, to earn money from interest on money you lend to qualified borrowers.

These platforms vet the borrowers for you so you can reduce your risk of default while you earn income from the interest the borrowers pay.

With a real estate Investment Trust or REIT, you can finance real estate that produces income and own a part of it, too. This includes commercial properties, such as shopping malls, factories and hotels.

You get to leverage the benefit of earning returns via appreciation and dividends that are typically steady and pay out in higher amounts than equity stocks, sans the need to manage the property. However, you must follow important rules, such as the one in which the REIT requires at least 100 shareholders and is taxed as a corporation.

How many Revenue Streams should a Business have?

The quickest route to becoming an entrepreneurial millionaire is not necessarily by making one product with a high-profit margin that flies off the shelves. You ideally should have multiple revenue streams in order to truly accumulate wealth. 

In addition to making sure ancillary costs in your life or in your business expenses are covered, multiple revenue streams also work together to grow your bank account — once you start to build them out. Here are four ways to build multiple revenue streams for your business.

1. Take stock of how much you can monetize

Creating multiple revenue streams doesn’t necessarily mean you’re going to start several more mini-businesses. A good first step is to simply consider how much of what you do on a daily basis or how much you have can be monetized.

Jamie King, otherwise known as The Slay Coach, recommends going through your day’s activities with brainstorming questions such as, “How can this serve others?” or, “How can I repurpose?” 

“You could open yourself up to a ton of ideas on how to bring in an income,” King shares. “Got an extra room in your house? List it on Airbnb. Got old tutorial videos lying around? Bundle them and sell them as a course.” Take stock of each resource you have to offer, consider how a consumer may benefit, and build a business plan around it.

2. Aim to create at least seven streams

While you’re in the building process, think bigger. It’s great to have more than one revenue stream, but it’s better to have, well, seven. Jenna Kutcher, influencer and the founder of the Goal Digger podcast, shared that she once read that the average millionaire has seven revenue streams. “So, I spend a year building eight,” she remarks.

As you’re continuing to aim for seven (or meet Kutcher on her level and build eight), she recommends building resources and blueprints that can really help your customers. In other words, continue to diversify product offerings. 

You know more than you think you do, so think through how you can share your expertise within courses or informational packets that can be purchased and downloaded online.

3. Remember that passive or residual income is also a revenue stream

Not all of your revenue streams have to be products or services that you’re continuing to churn out. There are many passive or residual revenue streams that can continue to accumulate money on the side while you’re building or focusing on your main business. Roland Frasier, the founder of the WarRoom Mastermind, recommends building these passive streams by adding in different categories of income. 

“There are plenty of examples, but consider adding income streams such as from royalty income, in which you own intellectual property for books and music,” he recommends. “Or dividend income, in which you own stocks or interests in businesses that pay you a percentage of their excess profits.

Most of the work on these income streams is done upfront, and then they’ll work for you in the background.

4. Make sure at least one income source is fully in your control. 

As you continue to diversify, Chris Harder, the creator of the For the Love of Money podcast, urges you to keep at least one income source fully within your own control. “In other words, make sure you’re not relying on someone else’s performance of products in order to thrive,” he shares.

It’s easy to build up residual streams, but making sure that there’s one source that’s your real money maker and dependent on your own resources and talents will keep you in control of your own wealth.

Employing these strategies can at least help you think through the ways in which your revenue streams can multiple within the year. And, the more revenue streams, the more revenue.

What Sources of Income do Millionaires have?

Which and how many streams do the wealthy millionaires apply? Which is the best stream for you? There is much more to earning money than what you are probably aware of.

Here are 7 Income streams for millionaires. 

1. Earned Income

Earned Income is the money that you earn by doing something or by spending your time e.g. the money that you make in your job, the salary you get by working for someone else.

Now, this is where your quality of life will suffer the most because you will be trading your time for money. In most cases, jobs will pay you just enough to stay over broke.

Quite obviously JOB means Just Over Broke. Now, the reason why most people are not able to think beyond earning money through a job is that Job will provide you with a ‘relatively’ comfortable zone.

Unfortunately, this comfort zone will become your biggest enemy and will keep you away from leading an extraordinary life. You will spend the maximum time of your life in this income stream and still will never have enough money to lead a truly wealthy life.

2. Profit Income

Money that you earn by selling something for more than it costs you to make. e.g. Businesses selling their goods at a profit, whether at the retail or wholesale level, as distributors or manufacturers. You need to be an entrepreneur for earning profits. 

You might need huge investments or you could start a small business for profit with small investments too. But this will also take away a lot of your time, at least in the initial stages – until you learn to manage it really well and be able to make it churn of its own. Entrepreneurship is a different kind of mindset and risk-taking capability. 

Most of the people who are in job and are used to the ‘Earned Income’ want to move to this category at some stage of their career or life, but find it difficult to make the move –  primarily because of lack of guts to take additional risks. Most often, this lack of courage is justified because of the family constraints and needs.

To be an entrepreneur and start earning profits, you will need to identify a product or a service that you want to sell, and then sell and manage it well, and manage your clients equally well.

For most people, ‘Earned Income’ and ‘Profit Income’ are the only viable means to earn serious money but they often tend to forget that there are 5 other ‘equally’ viable and serious streams of wealth generation.

3. Interest Income

‘Interest Income’ money is the money you get as a result of lending your money to someone else to use, e.g. putting it in the bank, lending it to the government in the form of buying Treasury Bills etc. 

This is a great source of passive income where your active involvement is not needed once the investment is done. Many doubt on the seriousness of wealth ‘Interest Income’ can generate, but when combined with the power of compounding, and the fact that this is a true passive income with the least amount of risk, this can beat any of the first 2 sources of income generation hands down. 

An INR 3 Crores lump sum can generate enough interest to feed you with a passive ‘inflation adjusted’ income of INR 1.5 Lacs per month and last for 40-50 years with average family expenses in a metropolis city.

4. Dividend Income

This income gets even better than Interest Income. It is equally passive and not only that, it also makes you a shareholder of a company. This is the money that you get as a return on shares of a company you own.

For e.g. the dividend that most companies announce at the year-end. The better this stream of income sounds, the more ignored and neglected is this source of income. 

If you invest smartly on ex-dividend dates of good blue chip companies, you can far exceed the returns from Dividend Income than what you get from the Interest Income, since you are also a party to the Capital Gains that the share price goes through.

This is one of the key instruments that we recommend for generating adequate Cash Flow and still get very good income.

5. Rental Income

This is the money that you get as a result of renting out an asset that you have, like a house, or a building. Now, this income is even better but there are inherent drawbacks of this kind of income over the above 4 types of incomes. 

One of the biggest drawbacks is the amount of money required to create such an asset which can generate regular rental income. Since the money required is huge, you may not be able to create many such assets in your life time, unless you have other sources of income.

Read Also: How Best to Optimize your Website

e.g. You can easily start earning ‘Interest Income’ or ‘Dividend Income’ with an investment as small as INR 1,000 but you can forget about earning a Rental Income with such meager investment.

The other big drawback of this asset is the (il)liquidity of the asset. It is difficult to liquefy this asset quickly in times of need or when you move / re balance your portfolio mix.

6. Capital Gains

This is the money that you get as a result of an increase in the value of an asset that you own. For e.g. when you buy shares at $10 and sell them at $11 – the $1 is capital gains, or if you buy your house for $200,000 and sell it for $220,000 the $20,000 is your capital gain. There are different tax laws in different countries on capital gains. However, there are ways to come around taxes as well. 

7. Royalty Income

This is the money you get as a result of letting someone use your products, ideas, or processes. They make all the revenues, they do all the hard work and you get a small percentage of whatever they earn. 

e.g. if you have a Subway Franchise – the royalty you send to Subway for using their processes, their logo, and marketing etc. is royalty income for them. If you are a writer, you get paid for every copy of the book sold. 

The biggest challenge here is to create something unique and then make it repeatable. This will need special skills to create such an asset but once created, there is virtually no limit to the amount of money you can earn.

What Are Multiple Streams of Income?

Having multiple streams of income means that a person is receiving income from several residual or passive income streams at once. Residual or passive income is income that a person earns without directly putting in work. This could be by opening an e-business to make money online, or it could be from property that they own and collect rent payments on.

While they may have to put in some up-front work, they do not need to put in direct work in order to make an income. In other words, they could go on vacation and that rental property or online products can continue to make money for them.

Most people who have passive income streams have found that once they have one income source up and running, it is easier for them to create multiple income sources. These are often referred to as multiple streams of income.

You could have multiple streams of income from having multiple jobs at the same time. This might mean you have a 9-to-5 office job and then you drive for Uber in the evenings. But when most people are looking for multiple income stream ideas, they are focusing on residual or passive income streams.

Multiple Streams of Income Ideas

Here are some of the best multiple streams of income ideas.

Online Presence and Affiliate Marketing are Great Income Streams

With online and affiliate marketing, your main goal is to create an online property that receives a lot of traffic. When most people think of creating an online presence and online income streams, they think about creating a blog.

This is one of the best ways to create an online property that receives a lot of traffic. But there are plenty of other options as well. An active social media page or YouTube channel also can be a great online property.

You want to pick a platform that focuses on your skillset. If you’re great writer, then you probably want to go with a blog. If you’re photogenic or good with video, then perhaps a YouTube or Instagram account is the best way to go. And Facebook is a great way to combine both visual and written content.

Once you have a large enough following, you can start to monetize that traffic and use your platform as a passive income stream. You can do this by selling your own products, or by selling other people’s products through affiliate marketing.

As an affiliate, you receive a small percentage of every sale on someone else’s website that is generated from the traffic that started on your website or platform. You also can make money by allowing ads to display on your content. This is how most YouTubers make money.

Property Rental as an Income Stream

Property rental is a great way to collect multiple streams of income. With property rental, you put down either your own money or a loan to buy the property. You’ll then decide if you need to invest anything more in the property to increase its worth. Then you’ll start renting it out and your rental will become a passive income stream.

Here’s an example of how this income stream might work. You buy a rental property for $100,000 with a bank loan. Your monthly payment on the loan is $1,000. Your costs to maintain the property are $200 a month. You charge $1,800 a month to rent the property. This means that you’ll make $600 a month in profit on the property.

You don’t need to be a handyman, either. You can hire companies to handle the maintenance and repairs on the property.

There are a few downsides to this type of passive income stream. You need a lot of money for the initial investment. It’s also possible that the property value could diminish in the area and you won’t be able to get the amount of rent you need. It’s also possible that there may be some downtime where nobody is renting the property.

Dividends as Passive Income Streams

When most people think of investing in the stock market, they think of the traditional buy low/sell high methodology. That can be a good attitude for day traders or retirement funds. But, if you’re looking to collect passive income streams, then you should focus on stocks that pay dividends.

In a nutshell, when a company becomes profitable, it will have a few options as to what it can do with its money. One of these options is to give money back to stockholders. This is called a dividend. Not all companies pay dividends to stockholders.

But if you invest in the right companies that pay out dividends, you could find yourself receiving a check for a couple of hundred dollars or even a couple thousand dollars every month.

How Can I Create Multiple Streams of Income in my 20s?

There’s no foolproof fast pass to becoming rich. But instead of daydreaming about that six-figure (or, even better, seven-figure) income, here’s information you can put to good use. Put these 15 steps into action now, and you’ll be laying the groundwork in your 20s for an overflowing bank account in your 30s.

1. Have a plan of action.

If you want to become wealthy, you’re going to need a plan. You’re going to need a budget that you can stick with for the long haul. The key to any budget is that it’s a plan to help you live below your means and spend mindfully — which is crucial to accruing wealth.

Sticking with your budget also ensures you’re paying down and eliminating your “bad debt,” especially on high-interest credit cards. Your budget should set aside money for your cash reserve to cover monthly expenses and help you build an emergency fund to cover the unexpected.

2. Maximize your earning potential.

If you want to become wealthy, you’re going to need to focus on making career decisions that will help you earn more money. Finding ways to increase your earnings and bring in more income is fundamental to becoming rich. Is it time you asked for a raise? Are there better-paying career opportunities you should be looking at?

Ask yourself if you would be able to earn more with a degree or credential in your field. What can you do to maximize your earning potential? Also, make sure you’re working hard and giving your all to whatever job you’re doing.

3. Have multiple streams of income.

You’ll never become wealthy on one income. Anyone who is serious about getting rich needs to build multiple income streams. This can include a side hustle or a second or part-time job. Can you offer a service or sell something?

What about starting a home-based business, perhaps in an area you’re already interested in? Do you have an idea for a product you can create, or something you’re passionate about that you can monetize, like selling items on Etsy or another online store? Be creative and think outside of the box.

4. Create passive income.

Residual passive income involves assets that pay you monthly for little to no work, or from work you did once but no longer do. This income is key to automatically generating wealth over time. Some examples include collecting royalties from books you wrote, selling advertising on your blog or website, or selling digital products like e-books, online courses, online workshops or videos.

Dividend-paying stocks can be another form of passive income. Other options include renting a room out of your house, creating an online store or signing up for cash-back shopping apps that offer bonuses for buying things you already buy.

5. Whittle down your living expenses.

To build wealth, you’ll need to live frugally. Most wealthy people don’t drive expensive cars or live in mansions. They keep their living expenses as low as possible so they can use their surplus income to continue investing in wealth-building opportunities.

The more money you have to reinvest, the faster you can accumulate wealth. Ruthlessly cut your expenses on things that don’t serve you. Look for ways to reduce your bills, including your energy bills and your credit card rates. You may even consider getting rid of your vehicle and using carpool options or public transportation.

6. Own your own enterprise.

If you want to become rich by your 30s, you should be looking at wealth-building opportunities that pay off quicker than traditional long-term investments. One of the best ways to do this is to get into the entrepreneurial game and own your own business. Once you own a business, you have unlimited potential to earn, although you also assume more risk.

Owning your own business comes with tax benefits that you don’t get when you’re someone else’s employee. Consider what areas you know best or are interested in learning more about, and look into business opportunities.

7. Plan for the long term.

Starting in your 20s, you should be investing in a retirement plan. If your employer has a matching program for a 401(k) plan, don’t miss out on their generosity by not contributing. If that’s not an option, look into starting a Roth IRA.

It’s crucial to begin saving for retirement early on, so you can take advantage of the magic of compound interest. And you should also be socking some money away into an emergency fund to protect you and prevent you from going into massive debt if the worst happens. By saving for the long term, you’ll ensure you’re building a nest egg to see you beyond your 30s.

8. Take risks.

If you’re serious about becoming rich, you’re going to need to step out of your comfort zone and recognize that the path to success is through uncertainty. Traditional paths, like having a steady job and a fixed check, are safer, but wealth often comes through taking calculated risks. Don’t let fear hold you back. If you dream of something more, learn to embrace different possibilities.

9. Put your financial plan on autopilot.

The easiest way to grow your wealth is to make sure you don’t have to constantly think about your money. To keep things simple, automate your finances. Here’s how it works: when your paycheck comes in, you’ll direct a portion to be automatically transferred into your emergency fund and retirement savings accounts.

You’ll set up recurring payments for all your bills, including credit cards, utilities, tuition and car payments. Then you’ll set up automatic payments into your investment accounts. Make sure you review your automated plan at least once a year, and try to increase your transfers over time.

10. Find good mentors.

The path to success and wealth means navigating risk and challenges — a tall order for someone in their 20s. Having an experienced mentor on your side will be invaluable. A good mentor can give you advice and be a sounding board when you’re faced with dilemmas or suffering a setback. Most of all, a mentor knows what it’s like to be in your shoes, but can help you see beyond yourself.

11. Cultivate a money mindset.

Your beliefs and attitudes about money influence your ability to achieve and maintain wealth. What is your philosophy when it comes to money? What do you believe about saving money and paying your debts? What kind of lifestyle are you accustomed to?

If you want to become rich in your 30s, you’re going to need to cultivate a money mindset. You have to not only desire financial freedom and be willing to work toward financial success; you have to believe you can become rich and that you deserve it.

12. Invest in yourself.

You are your own best resource. In order to increase your options and discover your best opportunities, you must invest in yourself. That means taking a hard look at your talents, interests and skills, and considering the best ways to maximize your potential.

This may mean spending money and time on your education and working to increase and refine your skills. You’ll need to branch out, broaden your mind and connect with others. You should be gaining experience and looking for valuable opportunities that will help you build your financial foundation.

13. Think big.

Being young and seeing the world through your unique vision gives you an edge; you may be able to see possibilities that others look past. Tap into your creative mind and unleash your ingenuity. See things bigger than yourself.

Your mind is nimble and flexible. Find your own path to greatness and wealth. Know that you’ll likely have some failures along the way — accept that. Own your mistakes, but also own your successes. And always, always push yourself to keep dreaming.

14. Surround yourself with money-minded friends.

The relationships we build influence us in so many ways. Not only are friendships important to your personal and professional life; there is also a correlation between your friends and your level of wealth. If you want to become rich, you would be wise to befriend people who are wealthy and successful.

Hanging out with other successful people can help you hone a money mindset. And socializing and networking with wealthy, like-minded people has the potential to open doors and help propel you toward your own goals.

15. Give your mind a continual upgrade.

Rich and successful people are voracious readers, always challenging themselves to learn new things. They’re constantly giving their brains a mental upgrade by absorbing new information and gaining knowledge, experience and insight.

Growing wealth takes time, effort and dedication. But continuing to learn and grow will help you adapt to change and make wise long-term financial decisions that ensure you’ll meet your goal of being rich in your 30s.

How do You Get 7 Streams of Income?

Having 7 income streams usually mean that you have a mix of both active and passive sources of income. While some demand bulk of your time, effort, and attention (these are your active income streams), most of them are awesome ways in which your money works for you without you having to dwell on them.

Earned Income

• This one is easy enough to understand – this is your regular job and most people’s primary source of income. Whether you work as a barista in a café or you clock in and out of an office, this type of income requires a certain number of hours to be met or a standard of output to be produced.
• There is nothing wrong with having a full-time job, one where you trade your time for income. In fact, earned income is an important first step to building wealth. Your salary is the source of your initial savings, which you will later on use to invest in passive income streams. What you must simply be conscious about is the amount of time you spend at work vs. the amount of money you are earning.
• The more efficient thing to do is determine how you can be more valuable at your job. That way, you increase your value without having to increase the amount of time you have to work. For example, if you are a sales clerk at a department store, the goal is to get promoted to branch manager. What most people get wrong is that they think they earn more by clocking in more hours but the income should come from what skills you can bring to the table. If you stick to clocking in as much hours as you can, you are restricted by the limited amount of time you have in each day. At the rate you’re going, you’ll have earned your first million by 40 years old…where’s the fun in that?

Business Income

• Business income is when you earn money in exchange for a product or service. This provides a great mix to your multiple income streams because it builds your wealth faster and in larger increments. Ask the greatest businessmen of our time and they will say that a fool-proof way to succeeding in business is to identify a need or lack in a particular market and find a way to address that in the most innovative, creative way possible. Your vision in business should exceed far more than simply making profit. Trust us: create a valuable offering, make product quality and your customers a top priority, and the sales will follow.

Interest Income

• You earn this type of income when you lend your money out. Some common examples include certificates of deposit, real estate crowdfunding, interest from a bank savings account, or even peer-to-peer IOU arrangements. Whether monthly or annually, you earn income by collecting interest from where your money is deposited. It is an effective passive income stream which many millionaires swear by. It’s as easy as stowing away your money somewhere and simply watching it grow on its own as the months or years go by.

Dividend Income

• Considered as one of many income generating assets, dividend income is something you earn as a result of owning shares of a company. Investing in stocks is a very popular form of dividend income. The key is to buy stocks while prices are low and sell them once prices start to kick in. This is so that you earn more than what you originally paid for when you first bought the units of stock. If you feel that this is something you definitely need help with, it’s important to seek the help of a seasoned stock broker. For a minimal fee, they will invest your money for you and navigate through the stock market to get the best possible outcome financially.

Rental Income

• This is when you invest in forms of real estate and rent it out to someone else. It could either be an apartment complex which you rent out to tenants or a commercial real estate building which other business owners rent out for their own respective businesses.
• Out of the 7 income streams, rental income may be one of the most powerful. Many millionaires can attest to this fact. This is because the values of rental properties are very subjective and can be manipulated to produce the best possible financial outcome. If you own an apartment complex, adding valuable amenities, like parking spaces and laundry provisions, instantly upgrades your property and gives you the power to charge rental fees a little higher than usual. Another major bonus? There’s a long list of tax deductions and exemptions you can take advantage of when it comes to real estate investments.

Capital Gains

• This is a form of income you earn when you sell investments. These investments can range from high-ticket items such as luxury goods, real estate properties, to sole proprietorships. This doesn’t mean you should spend left and right, knowing you have the excuse of being able to earn capital gains from these investments in the future. Remember, your income generating assets should be carefully assessed and be premised upon a ton of research. That applies to all 7 income streams.

Royalties or Licensing Income

• Many millionaires make money off of being creators of a product, idea or process. These ideas are considered your private property and other people cannot use them without your consent. Each time another individual or entity makes use of an idea which you have licensed, you get to charge them a royalty.

How to Create Multiple Sources of Income in India

Let us look at two such approaches.

Focusing On High Dividend Stocks By Creating A Corpus

Let us start by creating a corpus to invest your money. Let us say you are 25 years of age and earning Rs.75,000 per month after completing your MBA.

You can save Rs.10,000 per month in an equity fund as you have other commitments with the rest of the money. But starting off with Rs.10,000 per month in an equity fund SIP is not bad enough. Here is why.

Monthly SIP	Tenure of SIP	Average Yield	Extent of risk
Rs.10,000	20 years	14.50%	Medium to high risk
Amount Invested	Value at age of 45	Wealth Ratio
Rs.24 lakhs	Rs.1.41 crore	5.88 times

As the table above suggests, you have created wealth to the tune of 5.88 times your original principal invested. But more importantly, you have a ready corpus of Rs.1.41 crore available with you at the age of 45. What happens if you invest this money in high dividend yield stocks? Let us look at some possibilities

High DY Stock	Dividend Yield (%)	Indicative Annual Return	Equivalent monthly earnings
SJVN	8.16%	Rs.11,50,560	Rs.95,880 pm
Coal  India	7.85%	Rs.11,06,850	Rs.92,238 pm
NLC India	6.75%	Rs.9,51,750	Rs.79,313 pm

As can be seen from the above table, from the age of 45 onwards you are able to create a big source of additional income by just planning and investing Rs10,000 per month in equity SIP today. That is how simple it is to create a regular stream income by planning early.

Of course, we do not know which stocks will give high dividend yields at that point in time so we have considered the quality high dividend stocks at this point in time. Above all, this approach is also tax efficient as you only have to pay 10% tax on dividends above Rs.1 million in a fiscal year.

Creating A SIP And Then Paying Yourself Through An SWP

This is another way of ensuring regular income for a period of time. Let us say, you are uncomfortable with the idea of investing in high dividend yield stocks as they generally do not give price appreciation. Also, there is no assurance on dividend yields as dividends may fall if the profits of the company fall.

Another way out is to invest the money into a debt fund and pay yourself through an SWP. Let us assume that you did the same SIP and ended up with Rs.1.41 crore at the age of 45. Now you want to pay yourself a regular income for a period of 15 years till your retirement. Here is how it will work.

Year	Opening Balance	Yield on Debt Fund @ 9.75%	Value of Fund	Annual Withdrawal	Closing Balance
1	141,00,000	13,74,750	154,74,750	18,27,000	136,47,750
2	136,47,750	13,30,656	149,78,406	18,27,000	131,51,406
3	131,51,406	12,82,262	144,33,668	18,27,000	126,06,668
4	126,06,668	12,29,150	138,35,818	18,27,000	120,08,818
5	120,08,818	11,70,860	131,79,678	18,27,000	113,52,678
6	113,52,678	11,06,886	124,59,564	18,27,000	106,32,564
7	106,32,564	10,36,675	116,69,239	18,27,000	98,42,239
8	98,42,239	9,59,618	108,01,857	18,27,000	89,74,857
9	89,74,857	8,75,049	98,49,905	18,27,000	80,22,905
10	80,22,905	7,82,233	88,05,139	18,27,000	69,78,139
11	69,78,139	6,80,369	76,58,507	18,27,000	58,31,507
12	58,31,507	5,68,572	64,00,079	18,27,000	45,73,079
13	45,73,079	4,45,875	50,18,954	18,27,000	31,91,954
14	31,91,954	3,11,216	35,03,170	18,27,000	16,76,170
15	16,76,170	1,63,427	18,39,596	18,27,000	12,596

As can be seen from the above table, the corpus of Rs1.41 crore has been invested in a debt fund that conservatively yields around 9.75% per annum. So the idle money earns debt fund yields while a portion of the corpus is withdrawn each month for a period of 15 years till the age of 60.

For simplicity, we have considered annual periods but the annual SWP of Rs.18,27,000 will translate into monthly income of around Rs1,52,250. Additionally, since the withdrawal is structured as an SWP, the capital gains tax will only apply on the return portion and not on the principal portion which makes this method a lot more popular and tax efficient.

The moral of the story is that to create regular income, you do not need to look too far. Your own monthly SIP can be used to create multiple streams of income for yourself. Of course, the earlier you start, the better off you will be.

Multiple Sources of Income Quotes

Beginners and other passive income entrepreneurs face challenging situations that can be quite demotivating. It is important to remain motivated, persistent, and patient and reading a few quotes regularly can be a good starting point.

“If you do not find a way to make money while you sleep, you will work until you die.”Warren Buffet

“You can only be financially free when your passive income exceeds your expenses.” T. Harv Eker

“The key to financial freedom and great wealth is a person’s ability or skill to convert earned income into passive income and/or portfolio income.” Robert Kiyosaki

“The key is to work extremely hard for a short period of time (1-5 years), create abundant wealth, and then make money work hard for you through wise investments that yield a passive income for life.” H.W. Charles

“Residual income is passive income that comes in every month whether you show up or not. It’s when you no longer get paid on your personal efforts alone, but you get paid on the efforts of hundreds or even thousands of others and on the efforts of your money! It’s one of the keys to financial freedom and time freedom.” Steve Fisher

“Some people want it to happen. Some wish it would happen. Others make it happen.” Michael Jordan

“The best time, to plant a tree was 20 years ago. The second best time is today.” Ancient Chinese Proverb

“I remember saying to my mentor, “If I had more money, I would have a better plan.”. He quickly responded, “I would suggest that if you had a better plan, you would have more money.”. You see, it’s not the amount that counts; it’s the plan that counts.” Jim Rohn

“To obtain financial freedom, one must be either a business owner, an investor, or both, generating passive income, particularly on a monthly basis.” Robert Kiyosaki

“He who makes $25,000 annually through passive income is more enviable than he who earns $100,000 annually through a salary.” Mokokoma Mokhonoana

“The greater the passive income you can build, the freer you will become.” Todd M. Fleming

“You cannot have a million-dollar dream with a minimum wage work ethic.” Stephan C. Hogan

“Don’t work your way up, work your way out!” Unknown

“Financial independence is all about having more choices.” Robert Kiyosaki

“The greater the passive income you can build, the freer you will become.” Todd M. Fleming

How I Built 7 Multiple Streams of Income

To summarise, a IRS’ study shows that wealthy people build up to 7 income streams:

• Investment income — Dividend income from stocks owned.
• Earned income — Paycheck income from contracted employment.
• Rental income — Rents from real estate they own.
• Royalty income — Payments for royalties from selling rights to use something they’ve written or invented.
• Capital gains from selling appreciated assets.
• Profits — Income after expenses from businesses they own.
• Interest income — Money from savings, CDs, bonds, or other lending activities.

Corley’s research shows that self-made millionaires have multiple income streams:

• 65% of self-made millionaires had three streams of income.
• 45% of self-made millionaires had four streams of income.
• 29% of self-made millionaires had five or more streams of income

Diversification of investment has been around for ages, but these findings show that this idea can be applied to income streams. Even though both these studies have been public for a while, people still hold misconceptions about what it is like being or becoming a millionaire, which might be the source of what is holding people back to applying the money-making practices of the wealthy in their lives.

How Can a Beginner Make Passive Income?

Here is how you can start today:

1. Don’t quit your job early — stay at it until you really have to leave, as it will fund your other investments, as well as increase your wealth.
2. Invest in stocks long-term, passively and consistently, as it will generate you compound interest.
3. Start collecting rent today through subletting a room in your property, or buying a share of a rental property, depending on what you can afford. Once you have enough saved up, you can buy a small rental property with good rental potential and use the rent to generate savings for other properties you buy in the future.
4. Create a digital product, based on your area of expertise and sell it to collect royalties each month. Use your imagination. This can be anything as complex as sewing, cooking, business or coding class for kids, high schoolers, or college students but also as effortless as photographs you have taken or music you have created if you have a gift in those areas.
5. Start a business and grow it on the side of your main employment through scheduling time in the week to work on it (e.g., 2–3 hours after work every weekday, or on the weekends). Consistently grow it to generate a consistent additional income.
6. Save a set percentage from your income in a savings account and forget it exists, to allow yourself to collect savings interest.
7. Sell appreciated assets as a result of research of highly in-demand niches, obtaining or creating products or services, and supplying them at a greater cost than their book value.

Passive Income Stocks

Dividend stocks appeal to many investors because they provide a stable and reliable recurrent source of income. One notable stock that is popular among dividend investors is Exxon Mobil Corporation (NYSE:XOM).

The petroleum company currently has a dividend yield of 5.76% and has the potential to raise its market value to as much as $2 trillion by 2040 given the completion of its $100 billion carbon capture plant.

Shares of Exxon Mobil Corporation (NYSE:XOM) soared 24% over the last twelve months. The 52-week price range of Exxon Mobil Corporation (NYSE:XOM) is $31.11-64.02. On May 5, DZ Bank upgraded Exxon Mobil Corporation to Hold and announced a price target of $58.

Another dependable passive income stock is Ohio-based consumer products conglomerate The Procter & Gamble Company (NYSE:PG). The company has been paying dividends for 49 years and currently has a dividend yield of 2.62%. The Procter & Gamble Company (NYSE:PG) owns distinguished brands such as Tide detergent, Pampers diapers, and Pantene, among others.

Shares of PG jumped 15% over the last twelve months. The 52-week price range of The Procter & Gamble Company (NYSE:PG) is $113.76-146.92. On April 21, Stephen Powers from Deutsche Bank maintained a Buy rating on Procter & Gamble Company (NYSE:PG) with a price target of $158.

Conclusion

The biggest risk to your financial life is being dependent on only one income stream where you are actively involved. Each of these streams are one step above the other. You just need to get into the details and understand them more. Try it out. It could well be life changing for you and your upcoming generations.