If you have looked into making money online or read any articles about it lately everyone is talking about having income streams but what is passive income streams and how do you start them?
What is Passive Income Streams?
Income streams are money come in from different places. If you are retired and have income from Social Security, a pension and 401K those are all income streams, so it is an income stream with 3 incomes. If you are working two jobs, that income stream has two incomes.
Passive income streams are when you have money coming in from a few different passive income areas. Some of these areas could be income from writing a book, another income from blogging and then another from selling a digital product.
Whether you have your own business, perform contract-based services, or you work for someone else full time, the fact is having multiple streams of income is the best way to build financial security into your life. Think about it, when one income source dries up, you have the others, so you aren’t in total financial ruin as you rebuild and replace the lost income. Not only that, if your work depends on you to perform a task, what if you get hurt or sick? Then what?
Thankfully, when you are working online, there are plenty of opportunities to build multiple streams of income to provide financial security and create a safety net you can fall back on during difficult times. In fact, one could argue that today there is no job security – no matter what you do. Therefore, it doesn’t matter what your current job is, you should look for ways to create more than one stream of income.
One income stream could be income from a blog you set up that teaches people how to sew, you would write about sewing and teaching people to sew. Some posts on this sewing blog would be reviews of products which would include links to other websites that sell sewing supplies if you are an affiliate for them website that sells the sewing supplies you could earn a commission for every sale you send their way. That would be an affiliate marketing income stream. You can do this with multiple posts on the sewing website and each post could be an income source or you could even have another website doing the same type of thing (reviews) but with a different niche instead of sewing, it could be knitting. These are just examples the websites would be something which you are knowledgeable about.
Other income streams could be from an ebook you wrote, a course you teach online, ads from YouTube videos.
These could be the same niche (sewing for example) just different ways of presenting the material because people learn in different ways.
You will probably not be able to be completely passive with your income streams, you will want to promote them and make adjustments where you can to continue to improve the things you are offering but with little tweaks here and there and hopefully not too much work you will continue to earn income from different sources you set up to be income streams.
Why You Shouldn’t Put all the Eggs into One Basket
Everyone has a lot going on in their life with health care costs, college for kids, and just basic needs. Most jobs don’t last for 30 plus years anymore, and if they do, the pay doesn’t rise as it should. Therefore, creating multiple sources of income can alleviate the fear of being laid off or hurt where you will not be able to work.
If you look at rich people, they do not rely on one source of income either. Even if they inherit money from a parent, they usually take that money and invest in several business opportunities so that they can earn a little money from each venture and not worry that the stock market might crash, or something will happen to their one source of income. They diversify their investments, they diversify their income generation and spread the risk out so that they won’t suffer if something goes wrong.
That’s why you have sharks on Shark Tank who are already rich investing money in small business owners, entrepreneurs, and inventors. It’s not because they don’t already have enough money. It’s because they’re hedging against something happening to their original source of income with the other streams so that they’ll never be without. Because when you have many streams of income, you have options. This income for the sharks is passive because for each of their investments they are not doing any of the work. Each product they have invested in is an income stream for them. They are making money from multiple sources passively.
You have the option not to take just any client on to feed your family. You have the option not to work at that 8 to 6 job (face it, there are no 9 to 5 jobs), and if you’ve kept your expenses low, you may even have the option to just ride out the income loss depending on the other sources of income without too much sacrifice.
Creating passive forms of income can change your life completely because there is no security in one income stream. You need many streams to create an environment where you will not be ruined if just one of those streams should end for whatever reason.