3 Income Streams in 3 Years.
Seems doable right?
If you’re anything like me then settling in for the nine to five (read: seven to seven) grind five, six or even seven days a week until the sweet release of retirement just doesn’t cut it for you. Of course not! Ok good, now that we’re on the same page, let’s start cranking out a game plan.
What’s the point? Well if you have to ask, maybe this post isn’t for you… but feel free to keep reading anyway. Typically those of us interested in additional sources of income are looking for financial security, and by extension, financial freedom.
In my eyes, financial security lies not in the type of job you have or position you hold or even who you work for. Instead, we should be seeking diversity of consistent positive returns. What the hell does that mean?
Diverse Income Sources
The concept is fairly straightforward. The more sources of income you have, the less affected you will be if one of them goes south. This strategy works well with respect to monetary investments too.
Consistency is Key
Any income-generating venture you pursue should be able to produce the same or roughly similar return every month. You’ll likely be better off consistently earning $50/day running AdSense on your personal tutoring website than, say, being paid $5,000 for a freelance job which you may or may not land again for another 3 months. And if you find yourself saying, “Great, this works. How do I scale up?” we’ll revisit this in subsequent posts. For the time being, slow and steady wins the race.
Doesn’t matter if they are “big” or “small” and come from selling greeting cards on Etsy, trading stock options, or mowing the lawn. They just need to make sense from the trade-off perspective. What’s your payoff for the time and capital you invested? Is the positive return worth the sacrificed time and energy (if not, this is where you may also learn that you side hustle is not worth pursuing and it’s time to pivot). Being paid $500 for a 5-hour graphic design gig certainly trumps the hourly rate of mowing the lawn or an $80k/year salaried job, but falls short when compared to the earlier example of AdSense revenue, which may only require a few hours to initially set up.
So as you too set out on this journey with me keep the following questions in your back pocket:
- Can I count on this to generate X amount (or close to it) over and over for the foreseeable future?
- Does the payoff justify the time/energy/capital I am investing?
- Will this venture still benefit me if all else fails or is this income stream contingent on the success of something else? If so, how can I mitigate that risk?
Pro tip: feel free to apply these questions to other life decisions – I wouldn’t be surprised if it boosts your productivity and likelihood of success.
What we’ve effectively done here is created a system for setting the gears in motion on our second (and perhaps even a third or fourth) revenue generator.
If you found this post thought-provoking or have personal tips on the topic, I’d love to get your feedback. Just throw it in the comments down below.