Having multiple income streams is a wise financial strategy that can help you achieve financial security, independence, and freedom. It involves generating income from different sources such as your main job, side hustles, investments, and passive income streams.
To create multiple income streams, you can start by identifying your skills, interests, and passions and finding ways to monetize them. This article covers seven different income streams that you should consider to help make you money.
7 Streams of Income You ShouldConsider
Earned Income
Earned income refers to the money that you receive in exchange for work or services performed. This includes wages, salaries, bonuses, tips, and commissions. Earned income can come from a variety of sources, such as full-time or part-time employment, self-employment, freelance work, or consulting services.
Dividend Income
Dividend income is a popular way for people to generate passive income and is often preferred by those who are looking for more stable and predictable returns on their investments. Dividend income is money paid to shareholders by a corporation as a distribution of its profits. Dividends are typically paid in cash and are usually paid regularly, such as monthly or quarterly payments.
Rental Income
Rental income is the money you receive as payment from your tenants. This can include income from residential properties, commercial spaces, or even land that is leased for farming purposes. Income received through rental properties has to cover expenses related to maintaining and managing the property, but any excess income can be pocketed.
Income from Business Profits
Income from business profits refers to the income that you earn from business operations after all expenses have been deducted, such as salaries, rent, materials, and taxes. Starting your own business based on your unique skills, experience or passion can generate you significant income.
Interest Income
Interest income is the money you earn as a result of lending money to someone else, such as a bank. For example, when you deposit money in a savings account, a bank will often pay you interest as an incentive to keep your money on deposit at that bank. The amount of interest you earn depends on the interest rate offered by the bank and the length of time the money is kept in the account.
Capital Gains Income
Capital gains income is earned when you sell an asset for a price that is higher than what you originally paid for it. The asset could be anything from real estate to stocks and bonds. The difference between the sale price and the original purchase price is the capital gain.
Royalty Income
Royalty income is earned from things like copyrights, patents, and trademarks. When someone uses the property or rights owned by you, they pay a fee or percentage of their profits as a form of compensation.
Benefits of Having Multiple Streams ofIncome
Increased Financial Security
Having multiple streams of income can increase your financial security by reducing the risk of relying on a single source of income. This can mitigate the impact of unexpected events such as job loss or economic downturns.
Reach Your Financial Goals Faster
Another benefit of having multiple streams of income is that it can help you achieve your financial goals earlier. By diversifying your income streams, you can increase your overall earning potential, which can help you save more money, pay off debt faster, and invest in your future.
Freedom in Your Daily Life
Additionally, having multiple income streams can provide greater flexibility and freedom in terms of work-life balance, allowing you more time for activities you love, volunteer work you wish to pursue, or early retirement. For example, you may be able to work part-time in one field while pursuing your passions or an entrepreneurial venture on the side. This can also lead to increased job satisfaction and a sense of fulfillment.
Generate Dividend Income withBloom
At Bloom Investment Counsel, we provide actively managed, customized Canadian and U.S. dividend-paying portfolios for wealthy individuals, family offices, foundations, corporations, institutions, and trusts. For over 25 years, we have in investing in income-generating investments, specifically dividend-paying stocks, which can help you generate income, if needed, and growth from investing in the stock market.
If you are looking for a personal investment management service that can help you generate an additional stream of income, contact us today. Call us at +1–416–861–9941 or email us at info@bloominvestmentcounsel.com
This content is provided for general informational purposes only and does not constitute financial, investment, tax, legal or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities referred to. Individual circ*mstances and current events are critical to sound investment planning; anyone wishing to act on this content should consult with his or her financial partner or advisor.
