Multiple sources of income and making investments
One of the questions I get asked a lot is how to generate multiple sources of income.
Having written a lot about the need to save money for the ‘rainy’ day or what some refer to as the emergency fund. The last two years have shown us that nothing is certain. I have also read about the mass resignations of people who have rightly decided to change the way they live their lives. I agree. The pandemic and the subsequent lockdowns have shown us that we live in a very uncertain world.
So we know that things can suddenly go the way of the unexpected. In the past, it would have been ok to just rely on one or even two sources of income. These days, we need multiple to survive. People with multiple sources of income are likely to be less affected by the current pandemic. As one source is drying up, the other sources may just be picking up.
My sources of income
Here are my sources of income and I am sure yours will be different. The sources may even change over time, but not all sources will give you the same return as well.
My main source of income is being a teacher at the university. This for me is my dream job, the one i can do even if no one is paying me, but most importantly, it helps to pay the bills as well and keep me out of mischief. You need a job or business where you can really have fun.
Another source of income is the income from properties that I have. The properties were the ones where I have lived in and rather than sell when i moved to new properties, i have been renting them out. Property income is good, but it also has some disadvantages. I used to try to manage the properties myself. This can be a bad idea, if you can help it. Now, I get the experts to manage them and I just make sure that i keep the records etc. There are some lessons on properties, but I will write about these in another blog. How to invest in properties and still make it fun. This to me is purely passive.
Derive fun from other sources
Another source of income for me is writing. I have written several books. The books only give me pennies, but like all writers, I dream about the days when I will hit it big. Over the years though, i have tried to find my voice and it gets better all the time (i think).
Why do I write? It is therapy for me. It is fun to get out some of the images and ideas that I have in my head. Do I make a lot of money from writing? No. I make a few pounds a time, but thanks to Amazon, it means I can self publish without spending a lot of money. Writing is also about legacy as well. I believe everyone has something they can teach the world and putting pen to paper helps.
You can check out my books on Amazon
Other sources of income
My other source of income is my blog. Writing a book requires a lot of time and commitment. The blog just allows me to drop some of the ideas in a few sentences. I have some adverts and affiliates on the blog, but they don’t amount to much but it’s another form of therapy. The reason for my blog is mainly that I love to read business books and because I believe there is a lot of knowledge tucked away in books, hence I try to summarise the lessons from the great books.
My YouTube channel is one that I have been trying to build up since the lock down, again this is a project that is in constant development. Here, i am again just trying another form of blogging. The channel has not given me any money, but i see the project as a form of turning my pen into a video. This is one of those creative part of writing.
Here is a link to my YouTube channel
I also do some trainings on personal finance and entrepreneurship, act as visiting lecturer in some schools. It is so much fun just to get into a class and teach people who are keen to learn.
I have also created some online courses. Again, these courses are fun for me to do and I just put them out there. There are so many courses, but i love the fact that I can create something and others can benefit from, hopefully in the future.
Personal finance coaching
Another source of income that I have developed is personal finance coaching. I give presentations on the subject and provide some support for people interested in improving their personal finance. This is mainly on request and one on one to help people who want to save and invest. I never give financial or investment advice as I am not registered to provide investment advice.
I also provide some consulting for new start-ups and those who need help with their business plans or to develop their strategies when they start their business. These are mainly project by project, but some are also on going support.
Another of my very passive income option is investment. I try to save as much as possible (when I am not buying toy cars on Amazon), we must have a bit of fun. Investment is not the same as savings. Investment is when you actively try to get the money you have put aside to work for you and get you some returns. Saving is about putting money aside for a particular purpose such as the emergency funds we mentioned earlier, holiday or for other purposes. For many of us struggling with debt, then we may also put some money aside to try to pay off our debts as quickly as possible, but also better to be saving as well, even if just a few dollars or pounds at a time.
Investments can be risky, hence many people are put off by the possibilities of losing their hard earned money. There are things like crypto that can fluctuate widely. Even stocks and shares can also be very volatile. We hear of stock market crashes and the shouts of ‘sell, sell, sell’. In reality, investments can be fun if we manage to get into the stock market or have other forms of safer investments.
The safer the investments, the lower the returns are likely to be. As i write this, some of the very popular companies like Google, Facebook, Microsoft, Tesla etc are now worth trillions of dollars. They are too expensive for me to buy, so I stay away from them for now. It is only a matter of time before the markets correct themselves. It is always better to find your own gem rather than the shinning ones. I try to look for smaller companies in the right sectors with the right level of people and then invest in them.
I will write more about some of the successes and failures in the stock market. Remember, no one makes a lot of money without the possibility of making a loss. My investments are a combination of low risk and some crazy risks, but I only take wild risks with small amounts i am ready to lose (£500 on crypto) is a punt. I also try to focus on sectors that I know a little bit about rather than one that is very popular. At the moment, I am staying away from banks and oil companies. I think they have had their days. I invest in long term (3-5 years) rather than to keep checking my portfolio.
I also try to stay away from the companies that are mostly being recommended by analysts. Everyone else may be rushing towards them as well. I now use apps such as Moneybox, Plum, etoro etc
As you can see from the above, your preference will depend on your interest. Some people are artistic in nature and therefore their side hustle will be making videos, singing, teaching, selling, etc. The list is endless on what you can do. We all have skills that come naturally to us, but others will struggle to do.
I have a friend who is very good at house painting and gardening. Will happily pay him to do these tasks for me. What about using your car as a taxi ( Uber style). Not all of these are passive, but remember we are talking about multiple sources of income. The money from these sources, you can use to invest in other businesses.
I do hope you have enjoyed the above. Let me know if you have other sources of income.
If you are finding it difficult to start, remember all you need are baby steps. You maybe interested in