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6 Keys to Building Multiple Streams of Income

6 Keys to Building Multiple Streams of Income

For most successful entrepreneurs, building multiple streams of income is the key to financial success and independence. You have to diversify your income to achieve a consistent cash flow throughout the years.

Let us take lessons from the story of Ramit Sethi and how he was able to build his massive income-generating streams.  According to him, before you start building your streams of income, you need to consider some key points.

1. Attitude –

Your attitude over money matters. To many, money is just a piece of paper, especially if it’s just a $1 bill. To the prosperous, a one dollar bill is a seed which they can plant and turn into a money tree. Imagine setting aside 1 dollar a day. That will be 7 dollars in a week and $365 in a year. Let’s say you have more dollars to spare. You put aside $5 a day. That will be $35 in a week and $1,825 in a year. You can speed up the process by saving more dollars each day.

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2. Consistency –

Saving and investing can be boring and difficult at times, but you can’t stop. You will reap what you sow in the future and you’ll be surprised at how far your dollar has gone.

3. Focus –

Start with a single stream of income first. Do not be distracted with new strategies or new business opportunities. Continue with what you started until you are able to generate a consistent income. Then you can add another stream of income.

4. Leverage –

Instead of adding a completely different stream of income, you can add a complimentary income stream by leveraging business that you already worked so hard for.

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5. Invest –

The stock market can be overwhelming, but you can focus on these three tasks to make it simple: filtering, timing in and timing out. Mutual funds are a great investment and they are everywhere. How do you choose? Select the one that has the longest track record. Furthermore, the longer you invest, the lower is the risk.

6. Educate yourself –

Before you engage in a business or investment, you must arm yourself with knowledge. Learning about the particular business market will help you make an informed decision and plan better.

It is great to have financial freedom, but it does not happen overnight. If you decide to create multiple streams of income, build your initial income stream first. When you are comfortable with it and know how to handle it well, then you can start building your next stream of income.

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You have to know your niche clearly. You have to know who to sell your product/service to, what solutions you can provide to your customers, what outcomes you can help your customers achieve and why they should work with you. You should have a signature strategy that you will apply on all your income streams to help your customers achieve results. Without a strategy, marketing your product will be hard and your time and energy will just go to waste due to frustration.

Once you have a clear marketing strategy, use it on your initial income stream and find ways to make it more effective. After finding the right formula, apply it to all your streams of income.

It is not true that building multiple streams of income can make you a millionaire overnight. You must have a clear focus and strategy that is consistent in all your streams of income. In addition, just because a new strategy is making a buzz in the business world does not mean your strategy no longer works. To ramp up your revenue stream, you should perfect your strategy and apply it on all your existing and future income streams.

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To sum it all up, you should have a clear mind and a clear focus when you want to build multiple streams of income. Start with one stream of income, apply your strategy and learn from it. Get all the positive points, eliminate the bad points and apply your perfected strategy to all your income-generating endeavors.

If you know of other ways on how to create multiple income, please share it on the comments section below. Share this article with your friends and start earning while enjoying the things you love most.

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Last Updated on April 3, 2019

How to Nix Your Credit Card Debt in Less Than 3 Years

How to Nix Your Credit Card Debt in Less Than 3 Years

Debt is never a fun thing to be in. But, there are many actions that you can take that will help you rid yourself of the burden of debt once and for all.

By coming up with a set plan, eliminating your debt can feel much easier than constantly thinking about it.

This post will provide some tips on how you can do this to help you nix your credit card debt in less than 3 years.

Hint: there are ways that are easier than you think.

1. Consider Consolidating Multiple Credit Cards If Possible

This may not be applicable to you, but if you have multiple cards – it is something to consider. Keeping up with multiple bills is time consuming.

It will depend on the balance you have on each. Consolidate ones you can but do not do it to the point that you get too close to the maximum limit. Also, it is ideal to pick the card with the lower interest rate.

Consider if there are any fees or alternatively, rewards, with transferring a balance to another card. Watch out for fees. Note that some cards offer rewards for transferring a balance to them. This is extra cash that can help go towards paying off your debt.

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Having one or two cards can make nixing your debt much simpler than keeping up with the balance of a bunch of cards. Keeping track of paying the minimum towards a bunch of cards is time consuming. Spend the time to consolidate instead to make the overall process simpler going forward.

My tip: Have one main credit card. Have a second one that you use for necessities – such as groceries or gas – that offers rewards for those purchases (a lot of cards do) and set the second one on auto-pay. You should be able to pay off a smaller amount on auto-pay if it is a necessity. If you think you cannot, then you may need to cut down a lot on expenses.

Why do I suggest doing this? Having one thing set to auto-pay is one less thing to think about. One less thing to waste time on. Same idea with consolidating to one main card. Tracking down too many is a hassle.

2. Try to Pay the Full Balance You Spent Each Month at the Very Least

You need to pay off the amount you are spending each month when that bill comes in. This is the amount you spent THAT month.

Do not let the debt keep accruing while you work on paying any unpaid debt that has accrued. It will become a never-ending battle. Try as best as you can to be current on paying for each month’s expenses when that month’s bill comes out.

If this is a strain, consider why. You may need to cut expenses. Or you may need to consider other cards. Or look at where this money is going.

3. Pay Extra When You Can – Every Small Amount Counts

This cannot be emphasized enough. If you are looking at a lot of credit card debt, it can look daunting, but each extra amount that you can put towards the debt will really add up – no matter how small it is.

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It does not just reduce the principal amount that you have left to pay off, but it reduces the amount that is collecting interest. You will always save money with that reduced interest.

4. Create a Plan on How to Pay Extra

Back to the main point, having this plan is giving you one less thing to think about.

This plan should be a plan that works for you. If it does not work for you, your spending habits, and your views on debt, then it will not be an effective plan.

For instance, if a set plan of an extra $50 (or another amount that you know you can afford) works for you, then do that. Set that aside every month and pay that extra amount. Treat it like a bill. Choose an amount that works for you and pay it like clockwork as though it was a bill you had to pay each month.

Little amounts will not nix it entirely, but they will help tackle it and having a set plan can make it less of a chore. Creating a new plan of how much to put towards it each month is an unnecessary added stress.

5. Cut out Costs for Services You Do Not Use

If you are signed up for subscriptions that you do not use because of some free trial or for some other reason, cut it out. Your overall financial position will look better.

In turn, that will make cutting your credit card debt easier. Look at your statements to find these expenses. If you do not use them, you may forget you are paying some unnecessary amount each month. Cutting it out can really add up in savings that you can put towards other needed expenses.

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6. Get Aggressive About It

Consider these points:

Depending on the interest and the level of debt, you may need to give up a few indulgences. For example, instead of ordering delivery or going out to eat, cook at home. Everything adds up.

Other things may be more of a sacrifice. It may be a trip you wanted to go on, or a daily latte habit you’ve picked up. In these instances, consider how important it is to you and if it’s worth the sacrifice. And if it is a costly expense, think whether you can wait to indulge.

Cutting an extravagant expense can really help make a dent in your overall debt. Try not to add to debt when you are trying to pay it off. It will be a never-ending battle. Make it less of a battle with these tips and it will feel easier.

Bottom line: Do what you can to make this process easier for you. Implement steps that do this. It takes time now, but will help overall. Also, keep track of your spending and paying down of your debts. Which is the next point.

7. Reevaluate Your Progress at Set Intervals

Doing a regular check-in can help you see your efforts pay off or maybe indicate that you need to give this a bit more effort. If you check every 3-6 months, it will not feel so much like a chore or feel so daunting.

By doing this, you will be able to better understand your progress and perhaps readjust your plan. Bonus: if you see it pay off, it will feel great to do this check-in. You will get there.

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Finally (and most importantly)…

8. Keep Trying

Do not get discouraged. Pushing it off will make it worse. Just keep trying.

Once your debt becomes lower, each monthly payment will reduce the balance more. Why? You are paying less towards interest. It will be a snowball effect eventually and it will become much easier to manage. Just get to that point. And know once you do, it will feel easier and motivating.

Start Knocking out Your Debt Today

The best way to eliminate debt is to get started right away. Begin by implementing the above steps and watch your debt just melt away. Try out some of the above strategies and see what works best for you. Soon you’ll be on your way to a debt free life.

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Featured photo credit: Pexels via pexels.com

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