Do you struggle to make ends meet? Have you found yourself really up against it by losing your job? Maybe the rising costs of heating bills are putting pressure on you? Where do you turn to? How do successful people out there manage to cope if things go wrong? One of the ways is to have more than one way of making money. People have always used the phrase “don't put all your eggs in one basket” and this is the same with your money. When you have more than one income stream, you spread the risk and can rely on other areas if something was to happen to one. With that in mind, we're going to look at the 7 streams of income you should focus on.
Your Earned Income
Firstly, it's your earned income. This is the money you get from your day job. Your salary. You might get paid weekly, you might get paid monthly. Some people love their jobs, others hate the roles they are currently in. Whatever your situation with your career, whatever it is and however much you make, your earned income is your first on the list of 7 streams of income.
Your Business Income
Beyond your earned income, you could create business income. This could be from a venture you set up on the side of your day job, or perhaps something you do part time or in the evenings. You will have to consider tax when you are creating a business, as you keep your records and accounts up to date. Your business income might not even come from just one venture. You might test the water and dabble in a few different markets. It certainly keeps things interesting!
Income From Interest
Whilst there is very little out there currently in terms of interest, making your money work for you is another of the 7 streams of income. Once upon a time we'd be turning our noses up at the top rates currently available, however every fraction of a percentage point helps right now. You might think there is little difference between 0.3% and 0.7% but you might as well have you money in the place making you that little bit extra.
Dividend Income
Next on our list of 7 streams of income is dividend income. Many people don't know that they are. Dividends are basically a share of the profits. If you invest in stocks and shares, these may yield dividends for you. You might even be paid dividends as part of your company. If the company does well, you basically get a little bonus. Depending on your investment or the contract you have with a company, the amount you receive could vary wildly.
Capital Gains
If you buy something and then sell it on at a profit, this is capital gains. It could be anything from a property to artwork. Capital gains is subject to tax though, however it's the money you've made that is subject to the tax. If you buy at the right price and sell to the right person, even taking the tax into consideration, you can make quite a lot of money!
Royalties
How do you fancy creating something once and then making money from it over and over again? This is royalties. You could be a musician and once that song is created, you don't really need to do anything else with it. However every time it's downloaded or played you get paid. The same for photographers. Capture an image and then sell the license to it. Make something once, get paid more than once! You could be making money off one product years down the line. This addition to the 7 streams of income sounds ideal.
Rental Income
Have you purchased a property to rent out? Maybe you are renting it out now to help cover the mortgage and then the idea is to sell it on when you retire so you have a nice pot of cash to live on? Your rental income will probably cover the mortgage and bills whilst giving you a little bit extra on top. This is a great part of the 7 streams of incomes and depending on what you own and where you own it, you can earn quite a lot!
Your 7 Streams Of Income
They say that the average millionaire has 7 streams of income. Whilst your goal here might be to stay float in troublesome times, it's good to know that 7 streams of income can work so well that it creates millionaires! It might be time to start adding revenue streams to your life.
