Gone are the days when it was perfectly good advice to “graduate, get a stable job with benefits, and buy a home”. Now that we enter into a new generation, professionals of all ages are finding that a stable job just isn’t enough to cover our needs up until retirement. So what would be the best strategy to ensure we live the good life until our old days? The new answer is this: build multiple streams of income.
This mantra is now spreading widely among the financially savvy, and wise investors are looking for different ways to diversify their portfolio. The theory behind it is that even if you lose one business or investment venture, there will be others to back you up. If you already have some capital to get started, here are some avenues where you can start your trickle of money, until it becomes a raging waterfall.
1. The Stock Market
Wallstreet has always been a place loaded with cash. However, it is well reputed for its volatility. There are however, strategies other than day trading that can help you ride the waves of the market. Long term investing, or dollar cost averaging is only one of the techniques. Right now, the economy is at a slump, bringing stock prices low. This could be the perfect opportunity to buy stable companies whose share prices will eventually go up once the market recovers.
2. Real Estate
This is probably one of the best sources of passive income. Although it requires a large amount of capital, you don’t really have to pay the whole amount of the property in order to make a profit. What you need to do is have enough for a down payment, put the rest of the amount on a mortgage, then place the property for rent at a monthly rate that’s higher than the mortgage you are paying. What happens here is that you can collect a rent that can pay off the bank mortgage, while leaving the rest as extra income for you.
3. Food Stall Franchises
Large fastfood franchises such as McDonalds or KFC might prove to be a little too much for us everyday individuals. However, there are some small food stall franchises that are not only affordable, but are easy to run as well. What’s good about franchising is that it already has a business system set up. Usually, an effective system is what separates a successful business from a failing one. Plus, the franchisor will also teach you how to run the business. Franchises are also generally designed to operate without you having to be present day in and day out, making it a good source of cash without taking up too much of your time.
4. Blogging and Internet Marketing
We are now living in the generation of technology. The world’s newest billionaires are those that deal with information technology. Today, everyone can take advantage of the Internet by blogging or marketing and if you get it right, these little websites could easily churn in cash for you continuously.
5. Mutual Funds and Certificates of Deposits
If you happen to be a busy executive and you don’t have time to run even a part time business, then you may want to consider investing your money in stable arenas such as mutual funds or CD’s. These investment vehicles may not give as big returns as the previous three, but these require the least attention and are also considered to be the safest places to invest in. CD’s also give a fixed return of your money, so you know exactly how much you’ll be getting by the end of the term.
There are other ways to earn money without having to get a second job. Learning about different investment strategies and figuring out which one is best for you can help you establish multiple streams of income and allow you to retire earlier and do more with your money.