Some people views anything related to alternative income streams (aka, making money) as scammy, a waste of time, or taking too much effort. Some give alternative income building a try and give up shortly after, because it takes too much time and effort for the minuscule initial results. Why should you bother working on something for a week or even longer to earn $20 when you can work an extra hour of overtime? Well, here’s a quick answer: Your job is not going to be there forever. You can’t work forever. And you can’t retire until you figure out a way to replace income from your job.
Photo by Dave Donaldson’s via Flickr
What about the scammy part? True. There are a lot of scams and schemes out there, but there are also legitimate alternative income building ideas. Possibly one of the best alternative income strategies is to invest your money in the global stock market and let compounded growth works over time.
Does it take a lot of time and effort? Yes, at least initially. I personally utilize a lot the alternative income ideas on the list I recently shared, and for some ideas I even have multiple ways of building that particular income stream. The way I see it is that I am planting seeds, or opening doors if you will. Not everything I try will come to fruition, and there won’t be a stampede through every door I open. But over time and across many income streams, the combined effect will snowballed and become increasingly significant.
Here are my 7 key factors to build successful alternative income streams
- Passion — Do what you love. If you hate writing, don’t start a blog or try to write for money. Find income ideas that are compatible with who you are and success will inevitably follows.
- Expertise — Focus on what you are good at to begin the process. Sure, you could learn something new, but you want to put your best foot forward when you are starting out. Leverage your expertise to generate that extra income!
- Patience — Don’t expect to see the desired results right away — e.g., this blog was losing money for three months before I earned my first dollar. Building alternative income streams take time and effort. For some income streams, you might see results right away, for others you might have to wait. Time is your friend when it comes to building alternative income streams — start as early as you can and stay in it as long as you can.
- Commitment — Some ideas take more effort than others. For example, investing my money in the stock market doesn’t take that much time — just contribute the money, set up my asset allocation, research mutual funds and ETFs, invest, rebalance quarterly, and watch my money grow. Others take a lot of time and commitment — e.g., this blog consumes about 3 hours a day.
- Persistence — Not everything you try will be successful — e.g., my little stint with the bulk candy vending business. You may have to try dozens of ideas before you find the one that works for you. The important thing is to keep trying.
- Diversify — Don’t stop at the first thing that works. The whole idea is to have as many income streams as you could. You never know when one would dry up — e.g., even the Niagara Falls stopped for a day! Diversification is a great way to reduce risk, and it’s the best insurance against losing an income stream.
- Little by little — The nice thing about diversifying and having a lot of income streams is that little things do add up to a lot. Just like they said, “A dollar here, a dollar there. The savings add up” — in our case it’s the income that adds up.
Well, there you have it — my secret recipe for building successful alternative income streams.
Pinyo is the owner of Moolanomy Personal Finance and a Realtor® licensed in Virginia and Maryland. Over the past 20 years, Pinyo has enjoyed a diverse career as an investor, entrepreneur, business executive, educator, financial literacy author, and Realtor®.