6 Best Income Streams That Will Skyrocket You To Financial Freedom
With today’s high cost of living and inflation rate, it goes without saying that one stream of income may not be sustainable in the long term. A lot of people who have one stream of income are living from hand to mouth.
It is scary to just imagine what would happen if that one stream of income also was non-existent. What many people ask is can you attain financial freedom? How can you attain financial freedom? Here are 5 streams of income that will skyrocket you to financial freedom if well implemented.
1. A Job or Career
This might seem like an obvious income stream but you would be shocked to know how many people these days downplay having an actual job.
Yes, it is true that working your way out of a job and into financial freedom is important in life. However, we cannot simply overwrite the importance of having earned income.
The advantages of having an 8-5 job are quite numerous. From having a stable income, health insurance, allowances for different utilities, and even stock options depending on the employer.
So while you are working your way toward financial freedom, leverage the income you earn from your career to give you better positioning in the investments you are making.
Some people even grow career-wise and leverage their positions to better help them in investments they are making. From better mortgage deals to access to better facilities.
So if you are thinking of quitting that job because you want to lead your own way, think again. The luxuries of having a job should never be downplayed.
Instead, build your businesses and investments while working your job so that by the time you are absolutely sure that you want to leave that job, you have better cushioning.
2. Business Income
The second income stream that you need to focus on is a business. These days it’s quite common for people to have the so-called ‘side hustle’.
This may refer to a service or a product that you are selling or intend to sell. Business income can come from selling thrifted items, electronics, farm produce, or even beauty products.
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In terms of services, you can offer business services such as consultancy, beauty services like the salons, or even car services. Having a business income is important in your journey to financial freedom because you can learn a lot from it.
You can find out what works and what doesn’t and decide to stick to what is working. You can also build a brand from a business you started. All these big brands that we see nowadays started out as small businesses and grew to what they are today.
3. Passive Income
There are so many ways that you can be earning passive income today. We are not going to talk about all of them here but some of the most common ways of earning passive income are from interest earned from saving and investments.
You can easily earn some interest from the money you have saved in a high-earning interest account or from a money market fund. You may need a bit of knowledge before you invest in money market funds but the information is vastly provided on the internet.
Be sure to do your research before putting your money away on any investment.
4. Lending Business
Lending money out to people on interest can offer high returns on income. Depending on the terms and conditions and the interest being applied to the funds lent out, this venture can offer a huge return on funds invested.
A disclaimer that I can mention here is that you need to invest money that you are willing to lose. This goes for any investment and is the best practice. Lending out money especially as an individual can be very risky.
Institutions have better measures put in place to ensure that the risk of losing money is lowered. You can also apply some measures to protect yourself. You can also start a small group of sorts that saves money to lend out.
This might be safer as there is a collective responsibility and the risk is shared as well. Therefore in case of any eventualities, the blow is not as hard-hitting as it would be if you were alone.
5. Rental Income
This income stream may not seem very beginner-friendly because it may require you to own some sort of property. People who rent out their houses or land earn a good income monthly that can be directed to other ventures.
Some people who have houses or apartments can put up their listings on Airbnb and earn passive income from the same. I know you are already knocking this one off your list because you think that if you do not own any property, there is no way to earn rental income. This is far from the truth.
You can easily earn rental income by renting out part of the house or apartment that you are living in. Whether it is rented or yours, this will go the extra mile in giving you some extra coins.
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If you are paying off a mortgage, you can rent out part of the house and live in the other part. The rent that your tenant pays is what you can use to pay off the mortgage.
Once your mortgage is paid off you can acquire another property and rent it out as well. So you do not have to start from scratch with this one. Start from where you are and think of any space you can rent out.
6. Royalties & Licensing Income
Do have an idea that you know no one has thought of? Well, that idea could be your ticket to financial freedom. Just think about it. what if it is the next big thing?
What you need to do is to patent it first or get a license so that if anyone wants to use that very idea they should pay you for it. This can be quite a complex thing to do because first of all thinking of a unique idea is not that easy.
Also thinking of how to price your patented work is not that simple. You need to do a lot of research on the product and also how people price similar products.
You can also license other creations such as sounds, music, artwork, etc. Some billionaires easily make money through this method. They think of ideas or buy cheap patented ideas and sit on them till they are sure the value they will get will be worthwhile.
Which of these ways stood out for you? Which one are you likely to use? Let me know in the comment section below.