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How To Create Multiple Streams Of Income To Make Extra Money

How To Create Multiple Streams Of Income To Make Extra Money

Having multiple streams of income is becoming more and more common as freelancers, work-from-home entrepreneurs, writers, and other types of flexible jobs are out there. With the laptop becoming more widely available, internet-only companies cropping up left and right, and internet access becoming available at almost every coffee and food show, it’s no surprise. Having multiple streams of income (some of which are even totally passive, meaning zero work involved) allows you to retire early.

Here’s how to make extra money:

1. Become a Freelancer

Over 15 million people are self-employed in the U.S. as of May 2015. Being self-employed is becoming less of a dream and more envied than ever, and people are doing it. You can find freelance work in these areas:

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  • Writing
  • Web design
  • Graphic Design
  • Programming
  • App development
  • Customer service
  • Consulting

This list isn’t nearly extensive. There are tons of other ways you could freelance. To find work, check out:

Yup, even Craigslist. Poke around these sites and see if any of the work catches your fancy. You might like being a freelancer!

2. Become an Uber Driver

Uber is a taxi service ran entirely by “freelance” drivers – ordinary people with no formal taxi experience who have a car and are willing to drive people around for a fair rate. If you’re wondering how to make extra money, using your car, helping others get around could be the answer.

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3. Rent Your House or Spare Room with AirBNB

AirBNB, if you haven’t heard of it, is a way for travelers to stay in people’s homes. If you have a spare bedroom or guest house, you can rent it out to people traveling in your area who can’t find a vacant hotel room or want something a little more homey. For bonus points, show them around the area, tell them about local cuisine and the best “secret” spots to go. They might give you a better tip!

4. Invest in a Rental Property

This strategy takes more time and money to commit to than the others, but it can be very rewarding if you do it well. Befriend a local real estate agent and get them to show you the ropes of purchasing a property. Once you have it set up well, renting can be passive income other than looking for tenants and fixing up the place every so often.

5. Rent Your Car on Turo

Turo is similar to AirBNB in that you’ll be renting to travelers. However, instead of renting a space to sleep, you’ll be renting them your vehicle. If you’re not using it, you may as well make extra money off of it – just be sure to have great insurance coverage and read the rules thoroughly.

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6. Start an eCommerce Store

Opening an online shop is actually a lot easier than you might think. You can have one up-and-running in less than an hour using a tool like Shopify or BigCommerce. And, once you get it set up and running, it has the potential of being another passive stream to make money.

Don’t worry if you don’ have any experience, there are plenty of free resources to help you get started with your online store and marketing “hacks” to help you make your first sale.

7. Write a Blog

If eCommerce isn’t your cup of tea, you can still make money with your own website. Creating a blog has never been easier – you can even get started for free with tools like WordPress or Blogger. What are you passionate about? Cats? Computers? Backyard chicken coops?

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Start writing about your passion in your blog. Writing high-quality content consistently on the same days every week will get you going in the right direction. There are other things to worry about, like SEO (Search Engine Optimization), but you don’t need to know about that to get started.

Once you acquire a steady following, there are tons of ways to make money off your blog, like:

8. Teach Something

The final idea I have for you on how to make money is teaching. You don’t have to be a professional teacher or coach. Do you know a lot about basketball? Can you play the piano really well? How about math, English, science, or even video games? You can get paid to teach almost anything. To get started, sign up for a site like eCoaches, Udemy, or Cogno.

I hope this article has taught you how to make extra money with multiple income streams. Good luck – and let me know if you find success in any of these methods, I love success stories!

Featured photo credit: http://getrefe.tumblr.com/ via 66.media.tumblr.com

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Bill Widmer

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Last Updated on June 6, 2019

The Average Retirement Savings and How to Save Wisely

The Average Retirement Savings and How to Save Wisely

Are you on track for retirement?

If not, don’t worry, I’m not sure either. I save each month and hope for the best.

Fortunately, I’m at an age where most people don’t save so I’m ahead of the curve.

But, what if you aren’t in your 20s? What if you’re near retirement and are looking to gauge where you stand?

If so, keep reading. Here’s how to prepare for retirement and save wisely during the process.

What Does the Average American Have Saved for Retirement?

Saving for retirement is tricky.

Tell someone straight out of college to save $10k a year for retirement and it’ll be next to impossible.

Make the same request to someone decades older and they’d be more likely to be able to save this amount. But, a 20-year old college student can be “financially ahead” of someone saving more than them. Why?

Age matters in your financial journey. The younger you are, the more time you have to save and put compound interest to work. As you get older and have more saving power, you’d have less time to put compound interest to work.

Here are the average savings Americans hold by age bracket:

20’s – $16,000

During this stage, most people are paying loans and moving up the corporate ladder. Your best bet during this stage is to focus on eliminating debt and increasing your income. Don’t focus only on getting a high-paying job neither.

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Instead, focus on learning via Podcasts, reading books, and taking specialized courses. Doing this will make you more valuable and give you more career options.

30’s – $45,000

At this stage, you’ve hopefully escaped your entry-level salary and work at a career you enjoy. Your earning power has increased but you now have more obligations. For example, marriage, kids, and a mortgage.

Set a plan to pay off all your debt and focus on eliminating unnecessary expenses. Leverage financial tools like Personal Capital to ensure you’re on track for retirement.

40’s – $63,000

This is the stage where you’re at the prime of your career. Top financial institutions recommend you have at least 2 to 4 times your salary saved up. If you’re falling behind, start maxing out your 401K and Roth IRA accounts.

50’s – $115,000

During your fifties, you’re close to retirement but still, have time to save. You may be helping your kids pay college tuition and other expenses. Since you’re at the peak of your earning power, max out all your retirement accounts.

60’s – $172,000

By this point, you should have about eight times your salary saved up. If not, you’ll depend primarily on social security benefits averaging $1400 per month. Max out all your retirement options as much as possible before retiring.

Ways to Save Money on a Tight Budget

The sad reality is that most Americans aren’t saving enough for retirement.

Even high-earning power isn’t enough to secure one’s financial future. You need to have the discipline to save for retirement while time is in your favor. Don’t wait for you to have a high salary to save, start with having a small budget.

First, get a clear picture of where you stand. Write down a list of “needs” and “wants.” For example, Netflix and Amazon Prime are “wants” and a “cell-phone” is a need.

Use tools like Personal Capital to analyze your spending patterns. Personal Capital allows you to add all your financial data in one place–making it a powerful option to gauge where you stand.

Once you know all your expenses, organize them from highest to lowest expense. When you can’t cut more expenses, call your service providers to negotiate a lower price. If you’re not good at negotiating, use services like Trimm to lower your monthly expenses.

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How to Save Money Each Month

By this point, you know the average amount of money you should have saved for retirement based on your age.

But, breaking this down into monthly goals can be challenging. Here are some rule of thumbs to follow:

Aim to contribute 10%–15% of your salary each paycheck. Review your progress each week.

Why so often? The reality is that life gets in our way and you will have many financial setbacks. Your goal isn’t to be perfect but to get back on track instead.

Reviewing your finances weekly lets you know where you stand with your retirement. This doesn’t have to be a long process either. All it takes is login in Personal Capital to view your net worth and check how much you have saved for retirement.

Turn saving into a game and aim to save more each month. It will get challenging but you’ll get creative and find more ways to save.

Top Money Saving Challenge Tips

To prepare for your financial future and not be another statistic you need to be different.

How?

By adopting new habits that’ll help you become a saving machine. Here are some ways you can save more:

Automatically Contribute Towards Retirement

If you’re working for a company, you can automatically contribute towards your 401k. If you’re not currently contributing more than 10%, make this your goal. Contribute 1% more today and automatically increase this amount a year from now.

Odds are that you’re not going to be negatively affected by contributing 1% more. Many times we spend our money on things we don’t need. Contributing more towards retirement is a great way to secure your financial future.

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Use the Right Tools to Know Where You Stand

Once you’re contributing more towards your retirement accounts, gauge your progress. Make use of finance tracking apps to help you view the big picture of your retirement.

When I’d first signed up for the app Personal Capital, I didn’t know I had a negative net worth. Despite saving thousands of dollars, my debt brought my net worth to the negative. Knowing this motivated me to save more and spend less.

Now, I have a positive net worth. But, it was because I was able to view the big picture using the app. Find out what your net worth is using a finance tracking app and you may surprise yourself.

Bring in Experts to View Your Blind Spots

If you have too little or too much money saved, you should consider hiring financial experts.

Why?

You may need someone to hold you accountable to help you reach your financial goals. Or, you may need help managing your money as effective as possible.

Regardless of the reason, getting help may help improve your financial situation.

Before you hire an expert, find out which areas you need help the most. For example, if you’re constantly overspending, find a debt counselor. If you’re struggling with choosing the best investment options, hire a financial advisor.

Speed up Your Retirement Contribution

After learning how to manage your money well, the next best thing is to earn a higher income.

You’re capped at how much you can save but not much you can earn. Even if your employer isn’t giving you a promotion, you can still take charge of your financial future. How?

By starting a side-business.

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This will be something you’d work on after you’ve finished your day job. Once you start earning income from your side-business, you’ll be financially better off.

The best part is the more work you put into your side-business,[1] the more potential it has to earn more money.

So start a side-business in an area you’re familiar with. For example, if you enjoy writing, do freelance writing for small e-commerce businesses.

Once you’re earning a higher income, you can contribute more towards your retirement. Don’t wait for the right opportunity to secure your financial future, create one.

Reach Financial Freedom with Confidence

What if you were able to retire tomorrow with no problem, all because you’d have enough money saved up and little to no debt left to pay off? How would you feel?

My guess is that you’d feel happy and relieved.

Most Americans are falling behind their retirement goals for many reasons. They’re not prepared, they carry bad money-habits and are thinking short-term.

For you to retire successfully, you need to work backward and adopt better habits. Contribute more towards your 401K and focus on growing your income.

If you do, you’ll save money and pay debt faster.

Don’t beat yourself up if you’re behind your retirement goals. Take the first step today towards a brighter financial future. Isn’t retirement worth the hard work and sacrifice to be at peace?

Featured photo credit: Huy Phan via unsplash.com

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