multiple income streamsIf you’re anything like me, you’re always on the lookout for new income earning ideas. This isn’t a bad thing, the more diversified your income is the safer you are from financial hardships. If you lose one source of income you can always fall back on another. That’s the beauty of multiple income streams.

I thought it would be fun to think about all the ways there are to earn extra money outside of a traditional day job. Here’s my list of four active income sources and four passive income sources to help you better diversify your income stream.

 

Active Income

In order to invest in passive money making ventures you’ve first got to have the money to invest. This is where active income streams come in.

While working your butt for a few extra bucks each month isn’t quite as attractive, it can be fun. Here are four ways you can earn more money on the side.

 

Freelancing

When it comes to freelancing you can do anything your heart desires. Be it writing, tutoring, teaching, or editing – it can be done.

To get started with freelancing you first have to decide what skill set you have that others will pay for. Once you’ve narrowed this down you can look for your market and begin to sell your services.

 

Blogging

In the wonderful world of blogging the stakes are high and the work is hard. While some people label blogging into the passive category, trust me – it’s not. Blogging requires hard work and consistency.

You need to be able to regularly create content, market your blog like crazy, and come up with a monetization strategy. Bloggers have the ability to make a ton of money but it comes with a lot of time and many, many hours of work.

 

Independent Sales

Independent sales are not something I’ve dabbled in but have seen many family members find success with them.

There are all kinds of companies that look for independent sales reps. Avon, Ava Anderson Non Toxic, Scentsy, The Pampered Chef, and Mary Kay are just a few.

A word of warning: do not spend money on these products until you know you’ll be successful. Research each company you want to work with very carefully. Lastly, you want to promote a product that you TRULY believe in, otherwise you might come off as a slime ball to your customers.

 

Making Crafts

With the popularity of Etsy selling your own handmade items is now a bit easier. If you’re crafty you can probably find a market for your creations online.

Etsy, Craigslist, and Facebook Yard Sales are a few places to try and unload your creations.

 

Passive Income

Passive income holds all the allure. After all, what could be better than kicking back and doing nothing to earn money? Here are a few passive income ideas that interest me and hopefully you too!

 

Rental Properties

Some may argue that rental properties are not a passive income source. I say it’s all about how you handle the rentals.

In the ideal world I’d love to amass ten or so rentals and let a property management company handle repairs, renters, and payment collections for me. In this case rental properties would in fact be passive.

 

Dividend Stocks

Another dream of mine is to have big portfolio of dividend paying stocks. To get started investing in dividend stocks you need to do a lot of research and determine which options would be best for you.

You could keep the dividend checks you receive or reinvest them into even more dividend stocks.

 

Car Washes

For some reason or another I’ve always wanted to own a car wash. In the summer months when I see a backed up line of vehicles just waiting to feed their quarters into the slots my eyes light up.

Arguably owning car washes could require a little work, especially during the busy seasons. Maintenance would need to be performed on the equipment and clean ups would need to be made. This could simply be hired out. Voila’ passive income through owning car washes!

 

Writing eBooks

This is a form of semi-passive income that I have dealt with myself. Writing the eBook and going through the initial marketing stages was not passive – at all. But, everything after that has been.

It costs nothing to write an eBook. If you have an idea, MS Word, and an internet connection you’re good to go. After you make it through the initial marketing stages you don’t have to do a thing. Granted the sales might not be high but an extra $25-$50 a month for doing nothing isn’t too bad.  If you had ten eBooks you could be making a passive $250 – $500 a month or more.

There you have it 8 ways you earn extra money. Income diversity is such a great thing and there are limitless ways for you to boost your earning power. I hope to add more and more diversity to my income stream in the coming years.

 

Final Reminder

Remember, you don’t always have to side hustle.  You can also focus on increasing your income at your regular job.  This could be by asking for a raise, or even looking for a new job.  Want to earn a lot more?  Look for jobs in London or overseas – these jobs can be more lucrative, but they do require a huge lifestyle change.

 

How about you? What things do you do to increase and diversify your income?

About Alexa Mason

Alexa Mason has written 191 articles on this site..

Alexa Mason is a freelance writer and wanna be internet entrepreneur. She is also a newly single mom to two beautiful little girls. She chronicles her journey as a single mom trying to make it big at www.singlemomsincome.com.

5 Responses to 8 (Passive & Active) Ways to Diversify Your Income Stream

  1. Michelle says:

    Great post! I’m always looking to diversify. Right now I have my day job along with all of my freelancing.

  2. Jaclyn says:

    I love these ideas! I am excited about starting to diversify my income!

  3. Tarence Wade says:

    Everything requires work, but some require more than others. Blogging is one of those, especially if you want to make it into a business.

  4. Nice summary on a variety of ways to earn a little extra income on the side. Good information especially in a recession!

  5. Tarence W says:

    Nice summary on a variety of ways to earn a little extra income on the side. Good information especially in a recession!

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