How to Create Multiple Streams of Income?

JC Project Freedom Journey Towards Financial Freedom

With recession looming and there is headcount risk when companies are reducing their cost. It is not fun losing a job without other sources of income. I have friends in technology companies, they are been let go. I have friends working for companies with high debt levels, the banks come in and instruct them to sell assets, and they are been let go. All these are not within their control. Do you know why employment is risky? You only have 1 customer which is your employer. You lose your only customer, you lose all your income. That’s a key customer risk. That’s why we need to create multiple streams of income so that we can diversify or lower some of the earlier-mentioned risks.

Investing in rental properties

Owning rental properties can provide a steady stream of rental income. The challenge is to have a large sum of money to set aside as a down payment for a rental property in Singapore. There are other restrictions in Singapore for additional buyer’s stamp duties or taxes for additional units. There are other challenges such as managing tenants.

Starting a side hustle or small business

Starting a small business or side hustle can help you generate additional income while still keeping your day job. We need to evaluate the side hustle whether it is another trade time for money deal or it can build into something. You are in the business or on the business. It makes a difference. Hence, structure your business such that you can sell it one day.

Investing in the stock market

Investing in the stock market can help you earn money through dividends and capital appreciation. Period. Most people lose money because they sell out at the worst moment and realize their losses. Sometimes not selling is a loss as well, you lose out on opportunities that bring back your capital faster than praying for a dead investment to revive.

Creating and selling online courses or e-books

If you have expertise in a particular area, you can create and sell online courses or e-books to share your knowledge with others. I cannot elaborate on this as I know ChatGPT and AI animation tools can help to write children’s ebooks and sell them on Amazon publisher but I am seating on this opportunity. It is not what you know but what action you have taken.

Selling products or services online

You can sell products or services online, such as through e-commerce platforms or your own website. You can sell your crafts on Etsy and eBay. You can set up e-commerce shops on Shopee, Lazada, Shopify, and Wix.

Building and monetizing a website or blog

Building a website or blog can help you generate income through advertising, affiliate marketing, or sponsored content. Blogging is slowing down as more people’s attention spans are getting shorter. There is the rise of reels.

Freelancing

Offer your skills as a freelancer, such as writing, graphic design, or programming, to clients online. You can sell your skill set through multiple platforms such as freelancer, Upwork, and Fiverr.

Owning an app

There’s a reason why the app market is flooded. Once the app is created, it takes little effort to maintain and you can generate an income through advertising. We need to ask whether this app adds value to someone’s life? The true challenge is trying to come up with an app that actually has value for people. App’s popularity is short-lived, you need to know about global privacy law.

Rent your space

In other countries except for Singapore, you can earn more money by renting a spare room or property on a short-term or long-term basis.

P2P Lending

You could consider person-to-person lending through a third-party intermediary such as Funding Society. You earn interest on the money you loan. Lending is risky. It takes a while to master this, it is not considered fully passive. It is also not entirely secure. If you are interested to diversify your portfolio, feel free to try Funding Societies Singapore, you can try to sign up here through my referral link.

Use your car to advertise

Some specialized advertising agencies will help you to advertise on your car so you are being paid while you drive around. Usually, the agency will find the appropriate client to “wrap” the car with its advertisement.

Rent your car out

If you don’t have a car that you don’t care much about, renting it out could be a good option.

Monetize your photos or music

A great way to earn extra bucks without doing any work is licensing the music and photos you already have so people can pay to use them.

Vending machines

Vending machines are by nature a typical source of passive income. Stock them and they do the rest.

Participating in affiliate marketing

Partnering with companies to promote their products or services in exchange for a commission.

Your main income

We should not neglect our main source of income while building others. Continue to invest in yourself. Invest in your know-how, and become so good that they cannot ignore you. Always deliver more value than what you ask for. If you deliver 1m worth of value, you are worth 100k each year. If you deliver 10m worth of value, you are worth 1m each year. This is the way to increase your income.

Conclusion

It is important to remember that generating multiple streams of income takes time and effort. Start small, focus on one or two streams at a time and as they start to generate income, you can expand and diversify. It’s also important to consider the legal and tax implications of any new income streams, and seek advice from a financial professional if necessary. Knowing there are venues out there is just one aspect, the more important aspect is to take massive action to create income. Don’t wait for perfection. Use the lean startup approach, launch and fail fast, refine your process and try again.

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