I shared a video on YouTube that covered my 6 streams of passive and active income that have doubled my income in the past year.
My day job provided my main income for many years but in the last year I’ve used the other 5 income streams on this list to fully double my income.
Why I’ve Built Multiple Income Streams
In this video I’m revealing my 6 streams of income. I’ve found building multiple streams of income over the last two years has really helped us create a solid financial foundation and a whole new business for myself!
I’ve been building these income streams over the past two years because of one important lesson: a job is not enough.
One income stream is not enough.
I’ve been let go from a job unexpectedly and I’ve work for a company that went under. After several unexpected job changes over a couple of years I realized that no job was 100% secure. After seeing how a pandemic in 2020 changed many people’s lives as well, I knew that one income stream from a job could never be enough.
Building multiple income streams builds a web of financial security. If one income stream slows or disappears you have others to pick up the slack. You also have a much higher chance of saving money and building up a nest egg because you will be earning more money.
I’ve worked hard to build up these multiple income streams and I’ll continue to do so.
Passive Income Vs Active Income
My income streams include both passive income and active income streams.
Passive income is where you earn money without active involvement or work.
Active income is where you trade your work and time in order to earn money.
These income streams are very different but both have a place in building a solid financial foundation of multiple income streams.
Having passive income streams can change your life which is why I focus so much on my favorite passive (and mostly passive) income sources: digital products, affiliate marketing and YouTube.
It is important to remember when building passive income streams that all income streams require something: either time or money.
To build passive income you have to invest upfront with no guarantee of returns.
For most of my passive income streams I’ve had to put in a lot of time to building out my content and learning skills to be successful. You can cut this short and save time by spending money but either method will require something of you. Passive income can’t be created from nothing. But the great news is that it can be created.
We can create our own incomes. We can create multiple income streams.
Income Stream 1: Day Job
I currently work a full time, 8-5 corporate job. It has been my main source of income for the last five years and has allowed me the security to build up my secondary income streams.
There are many benefits to having a full time job:
- biweekly paychecks you can count on (for the most part)
- predictable income each paycheck
- feelings of stability and security
- base to build multiple income streams
- 401k access with 4% match
- health insurance subsidized by employer
- FSA accounts for childcare and health
- other benefits like free food, holiday parties, occasional bonuses
There are definitely benefits to working a regular job and no one should ever feel like it’s not a good option. I just personally think it needs to be one option of many.
Working at my job is active income where I trade my time for money.
Income Stream 2: Investment Returns
Investment returns and dividends are the most passive income on my list. I purchase stocks and those stocks work for me by either growing or paying a dividend.
I love investment returns as an income because it is so passive. Once you purchase the stocks you are done and just sit back and let those companies work for you.
Currently I earn dividends in my retirement accounts and in my taxable brokerage accounts. I also consider the minimal savings account interest earned in this category.
Income Stream 3: Freelance Work
In addition to my full time job I will also take on some freelance work for clients. This is not a huge income stream for me because it is active income that requires my time, but I enjoy helping a few former clients.
Freelance work can be a great addition to your income streams if you need to increase your income but can’t wait for passive income streams to pay off.
What kind of work can you do freelance jobs?
You can find freelance work easily with many skills like:
- video editing
- graphic design
- website design
And many more! Whatever skill you have can be useful as a freelancer.
Where can you find jobs?
You can sell your skills on sites like Fiverr or Upwork, or just contact local businesses around you. If you’ve worked in a certain field and have a good reputation you will also be approached with jobs by contacts.
Income Stream 4: Digital Products
Selling digital products is a fantastic passive income stream. In fact it is one of my favorite income streams and the most consistent one I’ve created online.
Digital products come in many formats and niches so there is endless opportunity to create something that you can sell digitally to customers. The best part? Once you’ve created a product you can sell it again and again.
I started an Etsy shop and sell budgeting and saving printables because I created them for myself, but there are many different ideas out there.
Some digital product ideas include:
- Wall Art
- Digital Stickers
- Digital Planners
Want to get started with digital products as an income stream? Check out these posts:
- 15 Digital Products to Sell Online For Passive Income In 2021
- 17 Popular Digital Product Ideas To Sell To Make Passive Income
- 6 Most Profitable Digital Products To Sell Online
- 63 Digital Product Ideas To Sell To Make Passive Income
Income Stream 5: Affiliate Marketing
Affiliate marketing is a fantastic income stream for content creators. It’s one of my favorite and most profitable income streams.
Every month now I earn thousands of dollars in affiliate marketing revenue. The best part is that I only recommend products I actually use and love so I get paid for doing something I would do anyway.
With affiliate marketing you promote products or services and get paid when you refer a customer. You have a custom link with your data that lets a company know when you have sent them a sale. For each sale you get a kickback.
Affiliate programs range in types and profitability. Many larger companies offer 1-4% of sales that you refer. Smaller companies or fellow content creators can offer up to 50% of the sales. Then other companies pay per lead or have recurring payments.
There are many ways to earn money with affiliate marketing!
Want to learn more about affiliate marketing? Check out these posts:
- Complete Beginner’s Guide to Making Money with Affiliate Marketing
- How To Use Affiliate Marketing On Budgeting YouTube Channels
- Best Personal Financial Niche Affiliate Programs
- How To Make Money With The Erin Condren Affiliate Program
Income Stream 6: Advertising
My final income stream is advertising. As a content creator I make money from the ads shown on both my YouTube channels and my websites.
I like the advertising model of online revenue creation because it’s enough to support my work but it doesn’t force my audience into anything. They can choose to watch and ad or not. They can scroll by or click an ad.
Advertising can be a very low paying form of income compared to something like affiliate marketing. For many niches ad rates are very low. However, if you enter a high paying ad space you can earn decent income without a ton of views.
Luckily for me my interests overlap with well paying ad rates. Financial niches tends to have better paying ads for creators and YouTube ad rates for financial channels can be quite lucrative.
Those are all 6 of my income streams. Adding them all up has put me in a much better financial situation and I’m so glad I went about building multiple income streams!