More Income Streams
Most people can make over $100,000 a year if they’re committed to improving their formal education, be dedicated to their careers, and be willing to work 60+ hours a week. But unlike most people, I’m lazy and don’t like to work hard. 😛 So I prefer to use multiple income streams to eventually earn a $100,000 annual income instead. I first discovered the power of combining multiple income sources in 2012. Why remain a one-income household when you can become a two, five, or even ten-income household? 😉 Instead of focusing all our energy on growing one income, I feel the priority should be to promote synergy between multiple income sources to make them all work and grow together.
For example, my full-time job provides me with important skills, which I can utilize in my part-time job to increase my value there and get paid more. My increased part-time pay is saved up and used to buy dividend growth stocks which typically yield 3% to 4% to enhance my dividend accumulation rate. Then I reinvest a portion of my dividends in interest generating investments that yield 5% returns or higher. I can then use the interest income to invest in even more assets to grow my passive income. The more individual income streams I create, the easier it becomes to grow the entire income pot. 😀
In my last update I had 5 streams of incomes. In today’s post I’d like to welcome a new passive income stream. It’s interest-ing! 😀
Introducing my new income stream, Interest. ? I started earning interest on my investments in 2014. Back then I was only making a few hundred dollars a year. But by the end of 2015 it had grown to ~$2,000 per year so I feel obligated to officially include it on my income graph below, (light blue bar).
It’s always fun to discover new income sources. 🙂 Each one will have its own unique characteristics and advantages. Everyone knows we shouldn’t put all our investments into one basket. I feel it’s prudent to do the same with our incomes and not rely entirely on one job or income source. If I ever lose my primary job, it’s nice to know I have 5 other incomes to fall back on. Phew. ?
Here’s a description of each of my current income sources.
Interest Income: A new addition to my list of income streams. I’m currently earning $2,000 a year. Roughly half of this amount comes from mortgage investment corporations, and the other half is from high-yield bonds. I started investing in interest producing assets a couple years ago to diversify away from dividends.
Freelance and Other Income: This is miscellaneous income I make throughout the year that comes from freelance contracts, selling things on craigslist, and online income. For example last year I helped a local store owner design some posters and labels and got paid $500. 🙂
Farm Rent: In 2012 I bought a farm and since then I collect rent from a farmer who uses my property to grow and sell crops. Being a farm landlord is less stressful than owning a house because I don’t have to worry about the tenant damaging anything since the property is just 300+ acres of dirt, lol.
Dividends: Stock dividends from my investment portfolio.
Part Time Job: I teach graphic design at a local college.
Full time Job: Graphic design related work that requires the typical 2000 work hours a year. This job paid about $25/hour gross a few years ago. Here’s one of my semi-monthly pay stubs from 2012. I’ve blurred out personal details that could be used to identify me. Today, I am making between $25/hour to $30/hour.
Obviously graphic design isn’t a high paying field, but it’s also better than most jobs you can get with an arts education. The important thing is I enjoy it and I’m happy to continue working even if my compensation was cut by 50%, lol. But don’t tell my boss that. 😛
I’m sure there are still tons of other income generating ideas that would suit my financial taste. I can’t wait to find my next opportunity and grow my collection of income streams even more. 😀
Random Useless Fact:
Two years ago Romania decided to install fiber optic cables nationwide to stimulate its economy. Today they have the fastest internet in Europe and a growing start up community with programming, web design, and other IT services.