We all know, money can’t buy happiness but we all need money to survive. Warren Buffett says “If you don’t find a way to make money while you sleep, you will work until you die.” That’s why If you want to build wealth you have to create multiple sources of income.
What is a multiple source of income
Basically, you do not depend on only a single source of income, if you were to lose your job or if one source isn’t generating enough income , you have other sources of income flowing in to prevent financial problems.
Why multiple sources of income is important
You know the saying “don’t put all eggs in one basket“ it means you are dependent on only one source of income, it is very risky. There is no security of job, even high paying, the high rate of unemployment taught us that nobody’s job is safe & secure. Be smart and don’t depend on just one source of income.
Now we are able to understand what is a multiple source of income and why it is crucial.
This blog’s main motive is how to Create source income, because increasing income allows you to pay off debt, invest & save for the future.
There are three types of income Which Help You to Create Multiple Source Of Income
- 1.Earned income or active income
- 2.Passive income
- 3.Portfolio income
i am going to share with you, How you can create multiple sources of income in India by using these three types of income.
1.How to increase income through active income
Multiple Source of income
If you are doing a job in a company and receive a paycheques, you make money through Earned income or active income. Basically you are exchanging time for money. It is a Part of Multiple Source of Income .
You can increase your income through active income in the following ways
- 1. Develop skill – You can develop skills and add it to your resume to apply for a better paying job.
- 2.Ask for a Raise- If you think the compensation for your services doesn’t accurately reflect your contribution to the company, asking for a raise might be a good idea.
- 3.Starting side hustle is grate source of income – is work that you perform in addition to your primary job, but it is not like a second job, As an example you would like to play guitar, you can turn a skill or passion into a money-making venture by side hustle.
Active income is a good choice for those people who have low financial IQ. It is also time consuming because If they want to make more money, they need to work more hours .
2.How to increase your income through passive income
When your asset earns for you without exchanging of time for example rental properties that pay you cash flow in the form of rents, business that gives you profit, books royalty etc it is called passive source of Income. The best advantage of passive source of income is that it will earn money for you while you are sleeping. Once you have an asset, it will generate cash flow whether you’re working or not.
You can increase income through some smart passive income ideas
- 1.Making money online is also Grate Source of income – we all know the internet is the future. Many people are converting this opportunity to Carrier and earning great income through social media, websites ,YouTube channels, creating a blog etc.
- 2.Writing An eBook- this is the best option for those who want to generate passive income with no initial funds. you can write ebooks and sell them on amazon. You just need to use google research online and just summarize a lot of what you read into just one convenient location which is the book. People are willing to pay for this.
- 3.Become an amazon FBA seller- It is possible to build a five to six figure business by leveraging the Amazon FBA model. you need to take 3 major steps to start an FBA business.
1. Sourcing of product
2. Listing on amazon
3.send your inventory to FBA
You just need to find product opportunities while Amazon handles the rest on your behalf.
- 4.Become a hobby preneur- There is one of the best options for getting paid for what you love doing. you just need to Monetize Your Hobby & Passion. Making money from your hobby is also sustainable and gives you deep satisfaction and excitement.
3.How to increase your source of income through portfolio income
When you earn income from your investments like stocks, mutual funds, bonds, or capital gains, your source of income is called portfolio income. You can make lots of money by way of portfolio income in a short period of time. There are many examples available, like Rakesh Jhunjhunwala, Radhakishan Damani.
You can increase source of income through portfolio income In the following ways
- 1.High-Paying Dividend Stocks – there are many dividend yielding stocks in the stock market which are better than FD. You can invest in high paying dividend stocks like ITC, IOL, to increase your portfolio income.
- 2.Dividend Exchange-Traded Funds(ETF) – ETF is much the same way as the stock market. You can buy and sell stocks. You need to just learn and understand about how to pick the right ETF, the types of ETF, size of ETF, structure of ETF.
- 3.Option trading -Options trading allow for potential profit during both volatile times, it means when market goes up or down you can earn in both situations. But the biggest benefits of option trading is leverage, But it is also very risky. you have to learn & understand properly to make a wise decision in the stock market then you can go into option trading.
Conclusion
There are many ways to create multiple sources of income, But it is important to do your own research because it depends on you & your income goals. Having multiple sources of income is necessary for our life. It allows you to break the cycle of rat race and also gives more financial flexibility for the future. If you want to protect your family , you can’t negotiate with multiple sources of income .
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