Having multiple income streams allows individuals to diversify their sources of income, which can provide financial stability and security in times of economic uncertainty. With rising inflation and cost of living, relying on a single income stream may not be sufficient to meet one’s financial needs. According to a survey by GoBankingRates, 69% of Americans have less than $1,000 in savings, while 34% have no savings at all. Having multiple sources of income can help offset the impact of rising costs and provide a cushion in case one income stream becomes unstable or is lost.
Additionally, having multiple income streams allows individuals to have more control over their financial situation and can provide flexibility regarding their career and financial goals. It can also allow individuals to explore different areas of work and find what truly interests them rather than being tied down to a single career path. Here are 8 ways to establish multiple streams of income:
1. Rent Out a Room or Property on Airbnb
Renting out a room or owning an Airbnb can provide a steady income stream on top of your primary job or business. This can help you save for the future, pay off debts, or simply have extra money for leisure or emergencies. Airbnb is a popular platform that allows individuals to rent out their homes or rooms to travelers. According to Airbnb, hosts on their platform earned an average of $924 per month in 2019.
Being a landlord or an Airbnb host can also be a flexible way to earn money, as you can choose when and how often you want to rent out your space. This can be especially helpful if you have a busy schedule or need to take breaks for personal or professional commitments.
2. Invest in Stocks
Investing in stocks allows for the potential for significant returns on investment. While there is certainly risk involved, a well-diversified portfolio can provide a steady stream of income that can help to supplement your primary source of income.
Investing in stocks can provide a sense of ownership in the companies you invest in. As a shareholder, you have a say in the direction of the company and can potentially benefit from its success. Investing also allows for the opportunity to grow your wealth over time. As your portfolio grows, so does your potential for earning. With careful planning and a long-term investment strategy, stocks can be a great way to build wealth and achieve financial security.
3. Sell Products or Services on Etsy or eBay
Online marketplaces like Etsy and eBay allow individuals to sell handmade or vintage products, as well as new items. According to eBay, sellers on their platform earned an average of $2,000 per month in 2020. Here are a few reasons why Etsy or eBay provide great opportunities to establish multiple streams of income:
- Flexibility: Both platforms allow you to set your own prices, create your own listings, and manage your own inventory. This means you have complete control over your business and can work at your own pace.
- Reach: Etsy and eBay both have millions of users, which means you have the potential to reach a wide audience. This is especially valuable if you’re selling a niche product or service that may not have a big market in your local area.
- Low startup costs: Setting up an Etsy or eBay shop is relatively inexpensive compared to starting a traditional brick-and-mortar business. You don’t need to invest in expensive storefronts or inventory upfront, so you can start small and scale as you go.
- Passive income: Once you set up your shop and list your products or services, you don’t have to do much to maintain it. You can still make sales even when you’re not actively working on your business, which can be a great source of passive income.
In short, selling on Etsy or eBay can be a low-risk, flexible way to supplement your income. Whether you’re looking to make a little extra money on the side or turn your hobby into a full-time business, these platforms offer a great opportunity to do so.
4. Start a blog or YouTube channel
Blogging or creating content on YouTube can be a great way to monetize your passions and interests. According to a survey by TechJury, the average YouTube creator earns $3.50 per 1,000 views. If you are passionate about a particular subject, you can start a blog or YouTube channel and monetize it through advertising and sponsored content. While it may take time to build an audience, this can be a lucrative way to earn income once you have a sizable following.
5. Offer freelance services
Freelancing allows individuals to offer their skills and expertise to clients on a contract basis. According to a survey by Upwork, the average freelancer in the United States earns $28 per hour.
If you have a particular skill or talent, you can offer freelance services in your field. This could include writing, editing, graphic design, photography, or web development, among others. You can find freelance work through online platforms like Upwork or Freelancer, or you can market your services directly to clients.
6. Participate in paid surveys or focus groups
Participating in paid surveys or focus groups can provide a small stream of income. According to a survey by The Harris Poll, the average participant in a paid survey earns $6 per survey. You can choose to participate in surveys or focus groups that fit into your schedule, allowing you to earn extra money without disrupting your daily routine.
Another reason why participating in paid surveys or focus groups is great supplemental income is because it allows you to try new products and services for free. Many companies will offer free samples or discounts in exchange for your feedback and opinion. This can be a fun way to discover new products and save money on things you would normally purchase.
7. Sell digital products or courses
Creating and selling digital products or courses can provide a fantastic passive income stream. According to a survey by Teachable, the average course creator earns $3,500 per course.
Unlike physical products with a limited market, digital products can be sold to anyone with an internet connection. This means that you can reach a global audience and potentially make a significant amount of money from your digital product or course. And once you have created and launched your product or course, you can continue to sell it without having to put in additional time and effort. This means that you can make money while you sleep or focus on other projects.
8. Rent out your car or bike on Turo or Spinlister
Turo and Spinlister are platforms that allow individuals to rent out their cars or bikes to travelers. According to Turo, the average host on their platform earned $600 per month in 2019.
One of the best things about renting out your car or bike is that it’s a passive income source. Once you’ve set up your listing and started receiving requests, you don’t have to do anything else. The platform handles all the booking and payment processing, so you can sit back and watch the money roll in.
Renting out your car or bike on Turo or Spinlister is also a great way to offset the costs of owning a vehicle. If you’re not using your car or bike every day, it’s likely just sitting in your garage collecting dust. By renting it out, you can offset the costs of insurance, maintenance, and fuel, making it a more financially viable option.
Key to Financial Independence and Security
Having multiple income streams is key to financial independence and financial security because it provides a diverse and steady flow of income. When you rely on just one source of income, like a traditional job, you are at the mercy of that source. If that source dries up or you lose your job, you are left without a means to support yourself. However, when you have multiple sources of income, you are not as reliant on any one of them.
Establishing multiple income streams can provide financial stability and security in today’s economy of rising inflation and increasing living costs. By utilizing platforms like Airbnb, eBay, and Turo or offering services like freelance work or pet-sitting, individuals can diversify their income and protect themselves against financial risks.
Learn Build Profit is a financial literacy blog providing expert insights on income investing and passive income generation through dividend stocks and real estate.