Essentially, having multiple streams of income means having more than one way to make money.
The multiple streams can be a combination of a full-time or part-time job plus a side gig that provides extra cash on occasion. The waitress who models or acts whenever she lands a gig is one example of this. So is the office worker who sells Avon, the teacher who tutors off-hours and the policeman who works as a private security guard for local concerts.
Investment ventures are also part of a potential “multiple streams of income” strategy. Someone who has a job or makes a full-time living from a particular gig might have a house they rent out for additional income or stock investments that provide dividends.
Multiple streams of income might also mean creating a full-time income from multiple different gigs. Someone who writes articles for sale, makes art to sell at local art galleries, teaches piano on weekday evenings to local school kids and plays in a band on weekends has four sources of income. Microwork is a popular way to develop multiple streams of income. While any single gig might not pay the bills, it’s not too hard to make a living spending part of your time on each one.
Why Would Someone Want to Have Multiple Streams of Income?
Managing multiple streams of income sounds like hard work- and it certainly can be. But there are advantages to arranging your moneymaking ventures this way. Here are some reasons to have multiple streams of income:
1- Having multiple streams of income can be temporary. Someone might want to build a new career without abandoning the security of a real job. If the secondary income stream grows big enough- if your company gets off the ground or you suddenly land the acting role that pays real money- then the “normal job” income stream might quickly be abandoned.
2- Building multiple streams of income protects you from downturns in any one venture. If you have a few different ways to make money, losing your job or losing a single gig isn’t quite as big of a deal. Layoffs aren’t as scary if you know you have something to fall back on for your basic needs.
3- Multiple streams of income is a way to increase your overall financial situation without having to find a new job. Adding on a few other income streams can help you afford things your regular job doesn’t quite support, and it can be an easy way to add to your savings without having to give up anything you enjoy doing.
Is It Hard to Develop Multiple Income Streams?
Not really. It’s not expensive to set up multiple streams of income, either. Many gigs require little to no investment to get started, and others can be financed using a small portion of your regular income.
How much you spend and how much time it takes to set up multiple income streams depends a lot on which side gigs you want to take on and what kind of effort you want to put into your side hustles. Essentially, time and money are mostly interchangeable when it comes to developing extra sources of income. The more you put in of one, the less you’ll have to put in of the other. Spending lots of money on a duplex you can rent out gets you a steady extra income stream quickly without too much time investment. Building a whole new business from scratch on a bootstrap budget can take a long time but can eventually provide you with about the same level of extra cash per month. One of the best things about developing multiple streams of income is that you can do it however works best for you and your lifestyle.
Who Actually Does This? Do People Really Make Money With Multiple Income Streams?
We’re glad you asked. No, really- Multiple income streams aren’t just a niche thing. They’re literally The Big Secret to Getting Rich that multimillionaires know and you don’t.
Most people with a million dollars or more in the bank LOVE the idea of multiple income streams. There’s some who estimate that the average multimillionaire has seven different streams of income. This might include investment income, various business ventures, rental income, passive income, or a host of other different streams.
Of course, there’s no guarantee that multiple streams of income will make you rich, but if you find new ways to increase your monthly income, you’ll certainly be better off than you are without any additional cash-generating ventures.