Published 18 July 2018 Category: Compass Tips

Getting Started with Earning Multiple Income Streams

In hard economic times, we all need more than one income source. But there are only so many hours in a day you can put in for work. Unless you’re in the kind of job that pays by hour worked its hard to earn more just by working longer hours. Most of us who work 9 to 5 jobs feel that it doesn’t offer us enough freedom which is why the idea of earning a passive income sounds so appealing. Generating multiple streams of income can have a major positive impact on your finances.

Beyond making more money, multiple streams of income reduces the risk of being left without any income in case of getting laid off from an active income source. No one has 100% job security, and in case of any uncertainty, passive income offers you the financial security you need. Even though your income might drop as a result of losing an active income stream but your side hustles will at least allow you to get by until you find another steady source of active income. Multiple streams of income will also help in avoiding boredom which is bound to creep in if you do the same kind of job every single day.

Diversify your Income Streams with Easy Side Hustles

Passive income is the money you earn without doing too much work. Passive income ideas require an upfront investment and a lot of nurturing initially until they start to bring in consistent revenue. Choosing the right low effort passive income ideas will enable you to have a steady flow of extra income from several side gigs.

Here are some passive income ideas to get you started:

1. Peer to Peer Lending

Investing in a Lending Club is one of the more accessible and ultimate form of passive income ideas. Peer to peer lending enables you to offer other people funds for loans on an interest ratio of up to 10% per year. Although unlike banks, Lending Clubs have major risk factors attached to them, however potential losses can be minimized by consulting with a Lending Club advisor and making a few small initial investments.

2. Invest in REITs

Did you know that there is a way real estate can help you earn a passive income as well? Invest in the Real Estate Investment Trust (REIT) which is something like a mutual fund but with various real estate projects. The good part is that you don’t have to get directly involved as the fund is managed by professionals from the industry and you get higher dividends than bank investments, savings accounts or bonds.

3. Rent for Airbnb

Airbnb and similar accommodation sharing companies have been enabling people around the world to easily find accommodation for rent when they travel. Because it costs a lot less than expensive hotels, more people prefer these spaces. By participating in Airbnb, you can rent out a residence or even a room in your apartment to accommodate guests and earn extra money.

4. Try Affiliate Marketing

Out of a long list of passive income ideas, this is by far the most popular. Specifically for all those who have an active blog or website. Depending on your niche or industry, you can promote certain products/services on your website and get paid for it once the sale is complete. Before venturing into this arena, do make sure you perform a thorough research on the various affiliate marketing platforms and understand its several forms to pick the ones that will suit your needs.

5. Earn from your Craft

If you are a creative person with a hobby or a passion, then you can easily start a side business and earn a passive income. The possibilities are endless. Whether you paint, craft, write, make videos or take photographs – whatever creative side gig you have going on – you can promote it on your website or blog or dedicated a social media page to it and start selling right away.

6. Start a Savings Account

This is possibly the most boring investment ever but it is also the safest. Even though the interest earned is fairly low, but there are some banks that will help you open a high-yield savings account. A savings account will not make you rich, but it is good enough to stow your hard-earned cash in and earn a little passive income from.

There are hundreds of passive income ideas which can help you start multiple streams of income. The choice is yours. Explore your passion, conduct research on the passive income ideas that interest you and start earning from your multiple streams of income, so you don’t have to stay dependent on a single active source only.