Creating multiple streams of income passively is not only crucial but is imperative. Just think about it: if you only rely on your earned income to support you and your family, what do you do if something unexpected happens? what happens if you get fired or laid off? If you’re serious about becoming rich through passive income, you may want to work with a financial advisor, to help you figure out the best passive income streams to implement.
Even if you have some savings that can cover six months of your monthly expenses, that’s still not good because you have no money coming in during those months of unemployment. A good passive income strategy is to have another passive income stream to fall back on.
I am a big advocate of creating multiple streams of income passively, because I know that it is the best way to build wealth. Passive income means putting money aside early for the money to work for you rather than having to work very hard to earn the money.
So instead of relying on your job or on one passive income stream, consider having multiple streams of income to generate cash flow.
Create multiple streams of income so that if the economy goes down, you’ll still have other income streams to rely on.
So let’s get to it:
How to Create Multiple Streams of Income Passively
1. Have a stable earned income.
This one step is imperative. Before you even think of building another passive income, you must have a stable income or earned income. Earned income as opposed to passive income is income received from paid work. Whether it is your 9 to 5 job, or your own business, you must have a stable paycheck to cover your monthly expenses.
Always protect this one earned income; and save enough money; it will help fuel other passive income streams.
If you need to stash some cash in a savings account, consider these rates.
2. Manage your time better.
When you’re trying to have multiple streams of income passively, your time is very valuable. That means don’t waste your Friday, Saturday or Sunday drinking or partying with your friends.
Just think about it. If you barely have time for yourself because of your 9 to 5 job, you won’t have any time if you’re trying to create multiple streams of income. So don’t waste your weekend. Instead use this time to build your passive income stream empire.
3. Pick your first passive income stream
The next step is to find a passive income that most align with your talent, skills, and expertise. If you don’t know what to pick, in my blog post, “5 Passive Income Streams that Will Make You Rich,” I listed 5 passive income streams that will make you rich.
There are investing in a real estate property, starting a blog, peer to peer lending, dividend-yielding stocks, affiliate marketing. These are different than earned income. You can choose from any of those five. Certainly there are hundreds of passive income ideas you can use to make money.
But the most important thing you have to know is that you have to pick something that you’re passionate about and something that you have skills in.
Get clear on what your passive income stream will be about. Define it and focus on it. For example, let’s say you choose to start a blog, choose a topic or niche that you’re comfortable writing about. Bear in mind that most, if not all, passive income streams require a lot of work upfront. You’re not going to make a lot money if you only do the bare minimum.
Once you have your first passive income and you have a handle on it, you can move on to your next passive income.
4. Identify your market
Just as choosing your first passive income stream is important, identify whether there is a demand for it is equally important.
One thing about creating multiple streams of income passively is that, don’t just choose a passive income stream, just because you’re passionate about it, if no one else is interested in it. Determine who will pay you for the value you will provide.
5. Add value.
No matter what passive income ideas you want to implement, you must add value to the community you are providing it to, and do it consistently over time.
If one of your multiple streams of income is a blog, always write good content so that your visitors can keep coming back. Your blog’s visitors should feel that you’re helping them.
If your other passive income stream is rental property, add value by hiring a good property manager that will respond to your tenant’s problems in a timely and effective manner. Always maintain the property.
Without adding value, there’s almost no chance you will get rich.
6. Find a mentor
The best strategy to cut your learning curve is to have a mentor, someone who has achieved what you want to achieve. Instead of trying to figure it out all on your own, find someone who has already achieved what you want and copy whatever they did and make it your own.
If you can’t find a face to face mentor, there are other alternatives such as reading books, articles written by those who are experts.
In conclusion, creating multiple streams of income passively is not only crucial, it also gives you more financial options than relying on your earned income from your employer. Your day job or one of your multiple streams of income could leave you stranded. You need to have at least three. That way if one dries up, you can rely on the others.
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