How to build multiple income streams
Your 20s are the time of your life when you are bright, energetic, and have that x-factor to take on multiple challenges. As you slide down your 30s and 40s, the risk-taking appetite takes a downturn.
Your 20s are the best time to make money by creating multiple streams of income.
Creating multiple income streams early on saves one from financial pressure and insecurity later.
Wealth creation is a long and steady process. There is no quick fairy tale way to get rich. You got to build multiple income streams as early as you can to be able to reap the benefits later.
The 20s is the time of your life when you’ve got the time to seek new knowledge, pick up new skills, and spend time slogging on that exciting project.
You don’t have major family responsibilities so you can afford to spend time on your dream career.
Tips to build multiple income streams
How to create multiple income streams is a question that concerns many.
Building multiple income streams in your twenties is no rocket science. But, you must be clear about what you want to achieve.
Being vague about things and wanting to do everything together won’t help your cause. One must have visionary clarity and a full-fledged plan to follow.
It’s great to be focused, but one can’t be unidirectional either. You must have a flexible approach.
If plan A doesn’t work, have plan B ready. The idea of having multiple income sources is not to get overly dependent on that one job.
The gig economy is ever-changing with newer opportunities coming in every day. So you’ve got to keep your eyes and ears open and work on the skills that would help you make money.
Here are a few tips to help you create multiple income streams in your 20s.
1. Set realistic expectations
Setting realistic expectations is most important for setting an alternate income stream. You won’t get rich overnight.
Set monthly targets to review your progress. Be patient. Most passive income streams would take time to generate money. It is premature to expect immediate results.
If you’ve got a full-time job, how much time can you realistically devote to a side hustle?
Answer these questions candidly and set realistic expectations
- What is the amount of time I can spend on other projects daily?2
- Am I willing to sacrifice a bit of my social life to work on my side gigs?
- Can I spare some time for my projects during weekends and holidays?
It’s best to start slow and take only as many projects as you can handle comfortably.
If you take too much on your plate, then you won’t get anything done.
2. Be consistent
Consistency is the key to success in building multiple income sources.
If investing is a part of your passive income strategy, you must follow a consistent strategy and invest regularly, even if it is in small amounts. If you aim to make money from your blog, you must slog for a couple of months before you start seeing any results.
Be consistent, and you will see good results soon.
3. Take advantage of what you are good at
Do not waste your time trying to do something everyone else is doing. Don’t pick up side jobs just because you think it’s a hot segment.
Make money out of your interests and passions.
The most significant advantage of pursuing what you like to do is that your interest doesn’t taper off.
When you start working on a project, it’s important that you don’t get bored after a while. Working on business ideas connected with your interests is the best way to ensure that.
Instead of taking tons of new courses, if you could find something you are already great at and figure out a way to monetize it, it would save you a lot of time and money.
4. Be creative
For building passive income, one needs to be creative.
The gig economy is unpredictable and ever-changing. You won’t find readymade jobs that directly fit your skill set.
You will have to devise creative ways to monetize your skill set within the existing gig economy framework.
Ask yourself these questions and come up with gigs that utilize your interests
- Can I create unique products or services using my skill set?
- Can I make money by talking to people about my experiences and expertise?
- Can I teach something unique to people?
- Can I sell a new and engaging course in the online marketplace?
- How can I help people with my talents and expertise?
Answering these questions will give you multiple ideas for monetizing your hobbies and interests.
5. Take concrete action to create additional income streams
There is no substitute for taking concrete action when it comes to creating an additional income stream.
You must remember that not all your endeavors are going to be successful. It’s going to be a matter of hit and trial.
That’s why you must start creating multiple streams of income in your 20s so that you have enough time to experiment and learn.
You must set a solid routine for following all your gigs. No matter how great content you post on your blog or YouTube channel; it’s no use until you post regularly. You must take all your projects seriously and devote a fixed amount of time each day.
How to create multiple streams of income options checklist
There are many ideas to create multiple streams of income in your 20s.
Here is a checklist of the top options for building multiple streams of income.
These examples will help you find your own calling and give you pointers for creating additional income.
1. Full-time job
As contradictory as it may sound, a full-time job is a solid foundation to start creating multiple streams of income.
You get a fixed salary that gives financial security while you are working on other projects and trying to create multiple income streams.
You must go for a steady nine-to-five job that gives you ample time to take on some other work while ensuring a monthly base income. If you could secure a job with remote working arrangements, that’s even better. Remote work would give you the flexibility to manage your schedule and give equal attention to your part-time gigs.
If you’re disciplined, you can easily manage two or three extra gigs on the side along with your permanent job.
Investments are a great way to build multiple streams of income in your 20s.
Sound investments are key to generating multiple revenue streams long-term and earning passive income.
These are some ideas for investing you could go for:
- You could start with risk-free investment options like high-yield savings accounts and certificates of deposit. You don’t get to make too much money from these, but they are safe, and if you continue investing, you can create a continuous stream of passive income with almost no effort.
- Once you get more confident about investing, you can consider investing in assets like dividend stocks and index funds. They carry moderate risk, but long-term investments can generate good money. They are ideal for creating multiple revenue streams.
- To generate higher returns and make more money, you could invest in different kinds of stocks and bonds. Dividend stocks are your safest bet for investing in stocks; you could start with these. Once you develop more expertise, you can start investing in assets like growth stocks and small-cap stocks.
- Investing in crypto is a great strategy to create a lucrative income stream. Although cryptocurrency investments carry a high risk of volatility and uncertainty, they are great for people with a high-risk appetite since you can make a lot of money when the conditions are in favor.
3. Start a blog
Blogging is a great way to start an alternate income stream without burning a hole in your pocket.
You need minimal investment to start this online business. All you need to do is to invest a little bit in a good blog hosting site to have the right setup for your blogging business.
The best way to start your blog is by picking up a niche you are passionate about. You shouldn’t pick up any niche just because it’s a hot topic and other people are writing about it.
Pick a topic that you have expertise in.
Blogging is hard work though. It’s one of the best long-term online passive income-generating options.
But you need to spend time uploading some great content and building a dedicated audience community.
One must remember that it takes time to get a successful blog going. You must thoroughly research your niche and find a unique angle that no one else has explored.
The online space is full of content on literally every topic of interest.
One must find the unique selling point of their blog to distinguish it from the content of other players in their niche.
4. Become a social media influencer
Online businesses offer the maximum scope to generate passive income using your talents and skill set.
By becoming a social media influencer, one can earn money through sponsorships, advertisements, Amazon affiliate marketing, etc.
Pick a social media platform you are comfortable with and then start creating relevant content. It could be Youtube, Facebook, Instagram, TikTok, Twitter, LinkedIn, etc.
Pick a relevant platform that goes with your expertise and niche. For example, if you are a makeup and skincare blogger, platforms like Instagram and Youtube can get you the maximum fan following.
If you are a thought leader in the technology and entrepreneurship niche, you might want to focus on LinkedIn.
Creating appealing content that clicks with the audience is the key to becoming a successful social media influencer.
Many social media influencers create parallel streams of income by working simultaneously on different platforms like YouTube and Instagram.
Once you build a considerable audience following, brands start approaching you, and you have many options to make money through product sponsorships and by promoting affiliate marketing links.
5. Sell online courses and e-books
Selling online courses and e-books is one of the best passive income-building strategies.
Think of your expertise and how you can package it into an online course. Add a bit of anecdotal element while designing the course so that people can learn from your real-life experiences.
Your course should include a list of fun exercises and questions towards the end so that people can apply whatever they have learned.
Remember that in the online space, you’re representing your own brand. It’s up to you how to package your course to make it interesting and appealing to people.
Finalize the course outline and create content with a combination of text, audio, and video.
Sites like Udemy and Maven give space to all kinds of courses from various fields.
Another idea to create multiple income streams online is by writing an e-book and selling it.
E-books are fairly short; a typical e-book ranges from 3,000 words to 10,000 words. So you can easily write one within a month.
Choose a topic you are comfortable with and then write about it engagingly.
Once it’s written, one can begin marketing and selling it through multiple online platforms.
6. Sell handmade products online
You could turn your hobby into an additional revenue stream by selling craft products on e-commerce platforms like Etsy.
This is the kind of work that you can do easily on the side along with your other professional commitments.
You don’t need to make any major investments in terms of getting a new space on rent, etc.
You could put your art and design talents to use by creating handmade products like bags, graphic t-shirts, mugs, jewelry, storage boxes, etc.
The online marketplace is a thriving community for handmade goods. This business is ideal for people looking to start a side gig from the comfort of their homes.
The best part about selling art and craft items on e-commerce sites like Etsy is that one can start on a small scale and then gradually scale up as money begins to pour in.
7. Start an agency
This is a great business idea to build an additional income stream.
But, it would require more time and investment than your other side gigs.
Starting an agency is a great way to make more money by cashing in on your existing skill set.
For example, if you’re a freelance writer, you could set up an agency providing content services to clients. Or, if you’re a digital marketing expert, you could start an agency helping clients with their digital marketing strategy.
One can make more money by setting up an agency than by freelancing. Giving your business a formal structure and having a team lends more credibility to your expertise, and you generate revenue regularly.
However, one needs to be super proficient in their niche to be able to set up an agency. It’s best to start with freelancing, build a credible client base and then start an agency as you get more experienced.
8. Sell digital assets
Another great way to create multiple income streams online in your 20s is by selling digital assets.
This is a great side income option for creative people with a strong visual portfolio.
You can make good money by selling stock photographs and artwork on sites like Alamy and Shutterstock. You could also sell stock videos.
Selling digital assets is a great side hustle for college graduates with a graphic design background. There is a huge demand for all kinds of graphics in the online marketplace. You could easily pursue this gig in your spare time, even if you are studying or have a full-time job.
Most websites will pay you a cut of each sale when one of your assets is licensed. Creating digital assets does require a lot of upfront work initially.
You must create an excellent portfolio and continue to upload it consistently. Once your work starts generating royalties, this side income option becomes truly passive.
9. Offering your services
You could create passive income by helping people with your talents and expertise.
This business can be run both online and offline. If you’re a gifted musician, you could start coaching classes for amateur musicians once a week.
Or, if you’re a published writer, you could offer part-time workshops to aspiring writers. If you are a great cook, you could offer people cooking classes.
There is no lack of ways to help other people with one’s expertise if one thinks hard. All of us are gifted with a unique skill set.
One needs to learn to monetize their skillset by offering training and mentorship opportunities to other people.
Some more business ideas to create additional income
- Start a Shopify store
- Rent out your car or home
- Invest in real estate
- Take a part-time job at a local store
- Become a fitness and nutrition coach
- Take up freelance Microsoft excel work
- Become a motivational speaker
- Become a lifestyle and wellness coach
- Social Media Marketing Expert
- Market Research/Survey Caller
- Data entry work
- Run an errand service
- Become an Event Coordinator
There are many opportunities to create multiple streams of income. You get to earn a living and also follow your dreams and passions in the process.
But, you must be focused and figure out your exact expectations and motivations behind starting a part-time gig. Do you want to become an entrepreneur? Or, do you want to take up extra work just for earning some extra cash on the side? What are your long-term plans and goals? You need to factor in all these things before deciding the plan of action to create multiple income opportunities.
Finally, you need to keep these points in mind to generate multiple income streams in your 20s.
1. Invest in yourself
You must invest in yourself by way of learning new skills. Learning is a life-long process. If you want to make it big in life by working on multiple projects simultaneously, you must develop your skill set. Take online courses, attend workshops and conferences in your niche, and do whatever it takes to expand your knowledge and expertise.
Networking is the key to getting more work opportunities. Be genuinely interested in knowing more about people. Connect with like-minded people through both professional and informal networks. Share your knowledge and expertise and learn from others in the process. You have to proactively put yourself out there to make it big in the gig economy.
3. Lower your living expenses
Creating multiple income streams is as much about financial management as it is about increasing one’s income.
Learn to cut unnecessary expenditures. Stick to a budget. Resist the urge to splurge on online shopping. Online shopping can be pretty addictive making you buy things you don’t need.
The logic is simple. The more you save, the more money you have for investing or starting a new business.
4. Don’t be afraid of taking risks
Everyone has a different risk-taking threshold. But if your goal is to grow your income and build wealth in the long term, taking risks becomes unavoidable.
Most digital businesses have a certain amount of risk involved and there are no guaranteed returns. But that doesn’t stop people from starting a blog or a Youtube channel. Keep an open mind. Remember that to succeed, you have to fail several times first.
5. Think out of the box
To truly build something magnificent and fantastic, one needs to think differently.
Entrepreneurship is all about innovation. You have to constantly research the market and then adapt your skillset accordingly to create a viable business model.
With an innovative mindset, you will automatically embrace new ways and strategies to monetize your skill set.