Adopting the 'Multiple Income Streams' Concept
I was involved in a discussion with some friends some time ago, and on the subject of the economy today, it was concluded that we must take steps to ensure a good financial standing.
One of the things that we agreed: For us to be afloat, we must be involved in ventures that provide income from several streams year round. It is simply, adopting the concept of ‘multiple income streams,' which is a form of diversification; this could be likened to planting different seeds that yield fruits in different seasons.
There are three types of income:
Active Income - Income for which services have been rendered, such as salaries, tips, commissions, and income from businesses in which you have put in your time or resources.
Passive Income - Earnings from rent, limited partnership or other enterprise in which you are not actively involved. Others are, Income from investments, such as dividends, interest, royalties and capital gains.
Getting a full time job is an income stream. A part-time job while you run your business is also a way of getting additional income
Investing in stocks – This is a viable place to make investments with fair return, although it has risks like any other.
Partnerships – Finding good partnerships in ventures with other people is a way to diversify. These are times when you may not have to invest money, but skills, time, talent, professionalism. It may also be something you have already in your possession, such as equipment, cars, furniture and so on.
Consultancy – You can provide services that yield return in your area of expertise, which may not necessarily affect your primary job. A lawyer may provide counsel for a fee.
Brokerage – You could use your contacts to bring people and resources together for a fee. There are people who do nothing but broker deals and get a piece of the action; sometimes without moving an inch from their comfort zones!
Talent Trade – If you have a talent that can be exchanged for money, go for it! You could be an artist, pianist, baker, singer, writer, florist etc; sign up at a music school to teach children how to play the violin or piano part-time, teach salsa at a gym or school after work, and so on.
You could also trade a skill or experience such as, carpentry, bakery, catering, writing, public speaking, negotiating, organizing and so on.
Set up a business – You could set up a business that would hinder your primary job, or business.; something you can operate from your home or online after regular working hours.
Money Market – Put your money in a high interest yielding account or in treasury bills. The interest rates may not be that high, but your investment is safe.
There are other investment types, such as royalties, patents, real estate and so on.
There are other income streams that may not be mentioned here, however, the opportunities are endless.
Toyin Wura Oke