Wednesday, December 17, 2014

Multiple Streams Of Income

If you've been following my goal update posts, you'll notice that I have some sort of additional income just about every month. This usually comes from various side projects that I have going on. It doesn't amount to much - usually just a couple hundred of dollars - but it's extra* money that I can funnel directly to a particular goal, which in this case is buying a Tesla.

*By "extra," I mean it is money that is not regular income and is not included in my monthly budget.

My real estate background has impressed upon me the wonders of passive income. I love having my money working for me, 24 hours a day, seven days a week. I love going to the mailbox and finding a check waiting for me. (Although these days, it's more like logging in to my online bank account and seeing a deposit has been made.)

While I was starting out in real estate and still learning the ropes, I heard a lot of people raving about Robert Allen's book Multiple Streams Of Income. I never read the book, but I understand the concept. You want passive income coming in from multiple sources. I'm completely in agreement with this idea. I've got money coming in from stock dividends, hard money loans, ebook royalty payments, blog advertising, and on-line courses. Right now, it's nowhere near enough to make a living on and that's fine. I'm creating all these income streams (or income trickles, really) in my spare time and whatever income they generate is extra money to me that I can apply 100% to my "fun" goals. Thus, I can work towards getting toys without taking money away from more important goals, such as building my emergency fund, saving for retirement, etc.

(Fun fact: That link to Allen's book has an embedded Amazon Associate's tag in it and I'll get a few pennies from Amazon if you click it and buy the book, or anything else from Amazon, during that browser session. This type of marketing was my very first foray into passive income.)

If you want some extra money, think about your hobbies and what you enjoy doing in your spare time. There's probably a way to earn some income from it. If you enjoy making things, you can always make things and sell them. While that will get you some extra money, that is not really passive income because you still have to work to make the items. As soon as you stop making them, the money stops coming in. But maybe you can create a blog about your hobby, or make a video course on how to make that item. Now, when that goes out on the internet and people click on the ads on the blog or buy your course, that becomes passive income. Your content is out there generating income for you 24/7, no matter what you are doing.
It's an income stream! Get it?


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