Everyone needs multiple streams of income for diversification. Just like your investments are highly exposed if you only own one type of investment, your income is highly exposed if it only comes from one source.
For a gainfully employed professional who has no intentions of holding down a second job, multiple streams could include securities, real estate, angel investing in other people’s businesses, a home-based business, etc. It has never been easier to start a business as my favorite business author Elaine Pofeldt demonstrates! In addition, even though some activities don’t generate an income immediately, I think of activities that build a solid career foundation as part of multiple streams – networking, skills-based volunteering, mentoring, public speaking.
For an entrepreneur, you could do all of the above, plus diversify outside of your main offering. Connie and I offer coaching, but we also teach, write, consult to organizations, etc. Other coaches offer products or collect affiliate fees selling other people’s products.
I probably have too many streams of income but variety is one of my priorities, so my income portfolio includes:
- Royalties (from past writing projects)
- Real estate (I dabbled in turnkey investing this year and shared my experience on a real estate podcast)
I’d love to add content marketing, products, affiliate fees, peer-to-peer lending, and angel investing to the mix.
How about you? How many income streams do you have? What are you adding in 2016?