Income Streams: 5 Ways To Better Them Right Now6 min read
This #TableTalkThursday event was held on the 11th of June, 2020.
We asked our community what changes they would like to bring to their finances and how they plan to do that. More and more people are starting to agree that they would like multiple income streams. It can be difficult to actually take a step toward it because usually people are risk-averse, and fear failure.
Bringing a change into your financials can be an interesting process, but nevertheless, it’s still confusing for one who hasn’t tried it before. It usually takes a certain level of dedication to stick to multiple income streams and manage them all simultaneously.
So, had the opportunity been given where one could broaden their horizon and make tweaks to their income streams, what would they do? The process begins by understanding what addition or subtraction you would like to make to your life.
Diversify Your Income Streams
“@finlitdating I think it’s easier to diversify our income streams as a business. There are so many things we can do outside of our main income stream.
For example: blogs, affiliates, books, courses, social media.
The only issue has time to manage all of them, haha.”@carreirafinance
Businesses offer a wide variety of options to pursue. Apart from the main income streams from your business, the possibilities of diversifying your income streams from other products and services are endless. Of course, you could start off with something that aligns with what you’re doing right now, or something that really interests you.
There are so many sectors to experiment with before someone can settle on what they wish to do, but it does come with a cost. We are all aware of how every second in this world is precious, especially for the working professional, and to maintain multiple “jobs” or sectors that provide one with income can be a hectic task. One must learn the art of time management, so they don’t jeopardize one stream while working on the other.
Reduce Your Materialistic Things
“Oooo this is a good one. The one thing I would change is not being so caught up in material things or ideas, such as having a huge living space. The more space and things, the more time and money to maintain those things.@letsgetfiiiscal
It does feel awfully good to just relax on the cotton soft cushions of the amazing, expensive sofa in the living room. Sure, the refrigerator with a setup voice command gives someone that sense of satisfaction – owning a fridge that can reply to you. However, the more the materialism, the more you can get caught up in maintaining it.
Pick out a new designer handbag there, book a date at the posh new restaurant that’s opened up downtown, order the newest phone even though you have one that works just as good – chasing after all these materialistic objects often take out a huge chunk of one’s time and money. Time and money you could be investing somewhere that might yield better results. Another critical thing to keep in mind when investing in multiple income streams is that you could still keep moving forward even if one stream is lost.
Shift Your Income Streams Away From Your W-2
“I would shift my income from W2 to other sources. Ideally, multiple streams. I’d love to have income from rental properties and from work that aligns with things I’m passionate about – my podcast, blog, coaching others. Maybe someday I’ll get there!”@fiafter40
Changing out income from W2 for various streams would require a plan and a lot of patience. It’s been said for ages that if you’re doing something that you love, you won’t feel like your job is a liability. You will love waking up every morning because you can’t start doing what you’re best at. Investing in rental properties is all the rage now, with many up and coming neighborhoods from lesser-known regions turning into house owner favorites. All in all, it’s a good decision to focus on something that gives you a sense of satisfaction. You’ll only get there if you take small steps toward it every day.
You Have 2 Levers: Reduce How Much You Spend
“My first thought is I’d change what I bet most of us would change: more, please. But the truth is I don’t want to put in the work to get more money. So what I’m changing instead is how much I spend. Because we have 2 levers to pull where our budget is concerned: how much we earn and how much we spend.
Changing either one can change your financial life.”@coryanne_h
“Two things! Lower our expenses and increase our income. More streams of income. Currently working on reducing our expenses by renegotiating our mortgage. we should be able to drop our mortgage rate by 1.3%, which will increase our cash flow every month and reduce our total interest payment over the term of the mortgage.”@moneyredefined
Need more money – need to work more to earn that money – don’t want to work harder for it thought; almost everyone has had a phase in their lives where they just want more cash, but aren’t willing to put in more effort it. When you can’t get yourself to work more, another way to look after your income streams is to manage the inflow and outflow of money.
Adjust either – if you can’t seem to increase your earnings, decrease your expense; if you need the extra expense to feel better, put in the work, and create more income streams. A great way to reduce your expenses is to thoroughly go through each of the outflows and decide on what can be changed and what needs to be changed. Renegotiating and decreasing the mortgage will increase the cash flow without having to do some extra work for it.
Improve Your Network
“I want to change our network a bit more. Network = Net worth.”@mindfulmoneyhab
Reaching out, collaborating, and building strong connections can go a long way in hooking you up with an opportunity to offer a hefty paycheck. To put it in looser terms, the stronger your web of networking, the better chances you have of strengthening your monetary game. When working on the network, it needs to be genuine rather than used simply as a means to get your way across.
Give Back To Your Community
“I want to give more.”@budgetloverrr
Giving back to the community is a fundamental function that everyone should abide by. Think about how you could play a role in building the community and deliberate on how great it would feel to do so. A simple initiative like contributing to humanitarian causes, supporting movements against some sort of injustice, donating to local retirement homes, and helping out to improve the overall condition of the neighborhood are great ways to start off.
Reflecting on your income streams can be scary, let’s just agree on that. Nevertheless, it can be a stepping stone toward something much bigger, better. Small habits like penny-pinching can help you shave off your expenses here and there, but grand changes only come from grander, well-thought-out choices.
If you enjoyed going through this discussion, make sure to join in every #TableTalkThursday at 9 – 10 am PST on our Instagram for many more thought-provoking conversations. Get a clearer idea about your income streams and everything in between by being a part of a community that brings varied opinions to the table.