Jul 152019
 

tl:dr. I received raises from both my jobs. And got another 3 raises from various passive investments. On average each raise was $1,000/year.

Multiple Income Streams Update 2019

One way to potentially earn more money is to further our commitment towards our careers. But another way is to look for alternative income opportunities to supplement what we already have! There’s no limit to how much we can make if we plan ahead and build up a portfolio of multiple incomes. I began implementing this strategy in my early 20s. In my last update in 2016, I had expanded my total income sources to 6. 🙂 Here is a new update for 2019.

multiple income streams update 2019

Over the last decade my spending almost doubled due to improved living conditions, inflation, and higher debt payments. However, my income has roughly tripled in that same time. 😀 Overall my income to expense ratio has improved. I am now able to save over 50% of my take home income.

Breaking down my 5 raises

The Canadian economy stayed pretty flat, advancing only 0.1% in the first quarter of 2019. But even in a slow growth environment there are opportunities to make more money. Since I have multiple sources of personal income, each stream acts like a recurring revenue tool which I can try to extract value from. Some of this year’s raises required a bit of work on my part, while others just happened automatically.

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Oct 102016
 

Investing in a Brighter Future

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The Easiest $300 I’ll Make This Year

Hello eco-conscious friends! I recently discovered a way to earn $300 in interest/year by using leverage and low interest rates. 🙂 For those who are interested in the details, here’s how it’s done.

  • Step 1: Borrow $10,000 from the bank at 3% annual interest rate.
  • Step 2: Download the online SolarShare purchase form.
  • Step 3: Fill out the form with instructions to invest $10,000 in bonds that pay 6% annual interest.
  • Step 4: Send the completed form back to SolarShare and start collecting net interest of $300/year. 🙂

That’s all there is to it. 🙂 Simple right? Once I made my decision to go for it the entire process only took about 30 minutes.

What I essentially did was borrow money at 3% to buy an investment that pays 6%. This means my net investment return is 3% pre tax. All the investment capital comes from someone else so I don’t have to spend a dime myself. This is the easiest way I know how to make $300, lol.

But of course just because this strategy works for me doesn’t mean it’s right for everyone else. So in today’s post I will discuss how my new investment works and why I chose to buy it. If you don’t yet believe in solar energy, maybe this post will help you warm up to the idea, haha. 😉 But please do additional research on your own and consult with a professional before making any financial decisions.

An investor who uses $10,000 of savings to buy these bonds would make the full 6% return since there would be no cost of debt. I didn’t use my savings for this investment because my money is earmarked to make another big purchase later this month.

Why Invest in Solar Energy

Sustainability is very important to me. This is because I love bacon, lobster, steak, sea bass, and all things delicious. Animals require a sustainable habitat to live and grow. But if there is too much pollution then entire ecosystems or farms where animals live could be destroyed. I simply cannot allow that happen.

So as you can see, investing in renewable energy is a matter that’s very close to my heart. 😆 And we are lucky here in Canada where we receive a decent amount of sunshine throughout the year, unlike some other parts of the world.

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I had previously wrote about how to invest in renewable energy. Not only is it environmentally responsible, but it can also be quite profitable. My investment last year in Brookfield Renewable is now up by 12%, including dividends, which is not too shabby. 🙂 But this time I ventured into the world of alternative investments to directly invest in solar energy projects.

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Jul 282016
 

University Grads Make More Money Over Time

According to a recent study from the University of Ottawa, the cost of higher education is still worth it. University degrees are linked to higher salaries almost regardless of the subject. 🙂

The study published this week looked at income data for 620,000 graduates of 14 different universities and colleges between 2005 and 2013, spanning an 8 year period to gauge progress over time.

On average, graduates from universities in 2005 made $45,200 in inflation-adjusted income in their first year after school. This number increased every year after that, growing by a total of 66% to $74,900 in 2013, which covers an 8 year period. But college graduates started off somewhat lower. The average income for a new college grad was $33,900 in 2005. After 8 years it has grown by 59% to reach $54,000. These numbers only represent the average. Individual results of a college or university education can be very different from one person to another.

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A closer look at the study’s findings reveal a big difference by gender. Both men and women start off making about the same after graduating university. But 8 years later, those averages diverge. The typical male university graduate who started working in 2005 was making 91% more money by 2013. His female counterpart who graduated with him saw her income only increase by 42% from 2005 to 2013.

I think there are a couple of main reasons for the gender discrepancy in income growth.

  1. Men and women tend to choose different majors. STEM fields, particularly technology and engineering, are pursued more by men than women. These fields also consistently offer lucrative career paths.
  2. Many women tend to take time out of the workforce to raise children. This is due to a fact of nature. Nearly every research has shown breastfeeding increases a baby’s intelligence. Men can’t give birth or breastfeed.

Higher Education in Universities

As with any report we have to consider any hidden agendas. A university study that concludes going to university is a good decision is like a real estate agent advocating for home ownership. It doesn’t mean they’re wrong, but we should be aware of the bias. 😉 We can also keep in mind that university graduates have been pre-screened to have certain qualities like being smart or ambitious enough to attain high grades in high school. These personality traits often lead to higher earnings regardless of attending university; correlation ≠ causation.

Higher education isn’t for everyone. Some folks excel at formal education, while others do better with a trade or entrepreneurship. The important thing to remember is that learning is a lifelong process and we can pursue it in many different ways. 🙂

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Random Useless Fact:

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May 302016
 

Always have a Plan B, because you never know when the condom might break. Of course having a backup plan for one’s career or business is also a good idea. I recently read an article by James Altucher on the importance of having a plan B. There’s nothing wrong with having a single job or a main goal to focus on. But most people these days will not be working for the same company for 40 years and then retire into a comfortable pension program. So what we need to do is to figure out a plan B, just in case our initial career choice doesn’t work out the way we want it to.

Maybe we think our job is secure because the boss likes us. 🙂 But maybe he only likes us as long as we’re providing him with a great value or service. But if our work performance suffers in the future due to some unforeseen reason then we could be in trouble. The company needs to have a plan B in case we decide to quit or retire early. 🙂 That’s why we need to have a plan B as well, in case they no longer require our services. Just last week it was reported that Foxconn, the manufacturer of the iPhone has replaced 60,000 of its workers with robots. As technology becomes faster and smarter, more companies will look into automating their services. A former executive from McDonald’s mentioned “it’s cheaper to buy a $35,000 robotic arm than it is to hire an employee who is inefficient, making $15/hr bagging French fries.”

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If the fate of our plan A lies in the hands of just one company’s decision then it is only a matter of time before our plan fails. This is because companies have to change and improve in order to stay competitive and profitable, and some of those changes are not up to us. So if we have a plan B, at least we can have something else to fall back on in case our career doesn’t work out.

Resorting to plan B doesn’t mean we have failed. On the contrary, having multiple plans will only make us stronger, more experienced, and better prepared to deal with changing life circumstances. But we don’t have to stop at just plan B. We can make a plan C, D, E, and so on. If our plan A doesn’t work, at least we have 25 other letters of the alphabet to work with. 😀 In fact, financially savvy individuals have put in place multiple plans all running at the same time.

“The average multi-millionaire has at least 7 different sources of income. You can’t have 7 full time jobs. A “source of income” takes up much less time than a boss paying you to sit in a chair. So, do the opposite of focus. Try to help people in many different ways. Then many different types of payment will come your way.” ~ James A.

I think that’s true. One way to create a backup plan is to discover ways you can help someone else. If you are able to provide even $1 worth of value to others, and offer that to a million people, then you will make 1 million dollars! 😀 I only have 5 income sources right now so if I lose my 9 to 5 job I can at least rely on 4 other means of income to sustain my lifestyle. One day I will build up my income streams so that I will have 7 different sources of income, just like the average multi-millionaire. 🙂

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Random Useless Fact:

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Feb 042016
 

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! 😀

Interest

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).

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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.

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