Let me first start out by saying, I really don’t think there are many truly “passive” income streams…real estate, blogs, dividend payments….all require some work, even if it’s just work “thinking” about them. That being said, you should definitely add multiple income streams for both wealth building and growth as a person/businessperson…it keeps you in the game and provides your brain with much needed exercise. Finally, it gives you piece of mind knowing you are better equipped to deal with any potential financial catastrophe!
If you are a HIPE (high income professional or entrepreneur), then you have no excuse not to have at least a few streams of income. It provides excitement, growth, safety, and diversification in your life. Never risk having only your job.
Here are my current income streams –
- Dividend blue chip stocks, Bonds & REITs (45% of NW) – I love being an owner, which is why I own stocks and bonds mainly (I do have a small percentage in ETFs); currently being reinvested as income not needed.
- Physical real estate – aside from my personal residence (22% of NW), we (my wife and I) own 2 rental properties (8% of NW)(going to add at least 2 more in next 12-16 months) and a commercial building (25% of NW) where I run my business.
- Rental Income – Once you have awesome tenants, rental cheque deposits will make you smile really BIG every month. I have rent from 3 properties, the commercial earning 3 separate rents (so we have 5 rent cheques every month).
- My salary and corporate retained earnings (2 incomes here)
- My wife’s salary
Total # of income streams: 9
Miscellaneous – not income producing – I don’t include these in my net-worth at this point
- Gold – physical – not really an income, but can be used if necessary; my short term goal will be to own up to $10,000 in physical gold (only at about $1000 right now). Here is how easy it is to buy…www.kitco.com; TIP: buy in small quantities (I like the 50 times 1 gram bars) – that way if the end of the world comes, you will be able to survive a little longer than everyone else…now that I wrote that, I’m not sure if will help?!
- Crypto-currencies – ok, this is NOT another income stream and has been a BAD investment – I own BTC, ETH, and LTC – my $2500 speculative investment is currently worth under $1000. I will hold these to ZERO as a reminder to never get caught up in the hype (hipe) of speculation again; one thing I am happy about is that I invested only an amount I was prepared to lose. And lose I did. I love how life will always humble you from time to time.
The one investment that has helped grow my net-worth the easiest? Definitely real estate. Be an owner. I will write a future blog on my journey in the real estate game.
Use your HI to make money and then save and invest in things that line up with your values. If you invest in those things you are passionate about and value, you will succeed.
What does my future income streams look like? Pretty sure it will look similar to the above. One thing I may look to add in the next 5 years aside from more real estate, would be some limited consulting hours…I love to teach those eager to learn.
- More Real Estate – 2 more properties
- More Gold
- More Stocks and Bonds
- Wine – for fun, bottles that will need to be held for at least 10 years to turn a profit…yup, self-confessed wino!
What are your streams of income? Have you set any goals for adding any more income streams? Would love to hear about them!