Multiple Streams of Income

29 min read

How to Create 7 Multiple Streams of Income: NEW Guide [2024]

Millionaires aspire to enhance their cash flow and accumulate wealth, prompting them to explore diverse revenue streams.  Generating additional cash flow can be made easier with passive income, whether you’re a side hustler or simply seeking extra funds monthly. This is especially beneficial given the impact inflation has on finances as it ensures that more earnings are accumulated during good times and helps to sustain oneself in case of unemployment, voluntary time off work or depleting purchasing power due to rising prices.

Passive income provides a means of earning money concurrently with your main job, enabling you to relax essentially when generating an ample passive income flow. This added source of revenue offers enhanced financial stability regardless of how it is achieved.

This article aims to outline strategies for generating multiple income streams.

Let’s begin!

Concept of passive income?

Passive income refers to recurring earnings derived from a non-employer or contractor source, as defined by the Internal Revenue Service (IRS). Specifically, the IRS recognizes rental property and uninvolved business ownership—such as receiving book royalties or stock dividends—as avenues for generating passive income. Nevertheless, in reality, there may be alternative pathways one can pursue towards accumulating passive income.

Todd Tresidder, a financial coach and former hedge fund manager who is now retired, has said that passive income gives the impression of something for nothing to many individuals. Although it may seem like an appealing “get-rich-quick” scheme at first glance, he emphasizes that some effort on your part will still be required. Rather than performing work continuously throughout its duration; you simply complete all necessary tasks in advance instead.

When it comes to passive income, there may be some tasks that require completion beforehand. However, ongoing efforts are typically necessary as well – like maintaining a rental property or updating your product in order for the funds to continue coming in without much effort on your part.

If you have a strong dedication towards this plan, it has the potential to effectively produce earnings and simultaneously provide an added layer of financial stability.

The Importance of Multiple Income Streams

Wealthy individuals understand the importance of diversifying their sources of income, striving to create numerous revenue streams. Multiple streams not only aid in amassing wealth but also assist with accomplishing diverse financial objectives like:

Retiring at an early age:

Generating revenue from various sources can aid in preparing for early retirement. Having various streams of income can greatly aid in the efficient repayment of debts.

Paying for higher education:

Having additional sources of income can make it easier to pay for education expenses, such as college tuition. This is particularly useful when managing healthcare costs. Diversifying one’s sources of income can offer monetary aid for medical costs.

How to Evaluate Your Income Streams

To avoid any financial commitment to a specific source of income, it’s essential that you analyze your choices based on diverse aspects. The following enumerate comprises the key factors which should be evaluated for every potential stream of revenue:

Assess whether the income stream permits working remotely, allowing for versatility in location. Expense: Determine the initial cost necessary for every source of revenue and analyze its practicality from a financial perspective. Have fun!

To ensure job satisfaction, it’s important to consider whether you truly enjoy the work that comes with your income stream. Assess the required time commitment for the job and determine if it conforms with your available resources and schedule.

Scalability cannot be inferred from this sentence alone, please provide more context or information on what you would like me to address about scalability.

To grasp the extent of notable financial advancement, examine every stream’s scalability and potential for income generation. Before committing your resources to creating a fresh revenue source, it is critical to assess these aspects meticulously. This comprehensive appraisal will enable you to make well-informed choices while boosting your chances of establishing varied and fulfilling streams of earnings.

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15+ Multiple Streams of Income Ideas

Below are seven potential sources for generating multiple streams of income:

  • Income from renting out property:
  • Income earned through the rental of properties.
  • Alternative: Rental income generated from properties.
  • Earnings received through the distribution of dividends by stocks.
  • Earnings attained from being employed, engaged in work or engaging in a secondary occupation. Payments made as compensation for the use of property or creative works.
  • Money earned through royalties on literature, patents or artistic creations. This constitutes as revenue generated by business activity.
  • Earnings arising from possessing and managing a company. Income derived through earning interest:
  • Income generated through interest accrued on savings accounts, bonds and comparable financial products.
    Profit obtained from the sale of an asset, such as stocks or property.

Making profit by selling assets that have significantly increased in value. If you’re interested in diversifying your income, check out the concepts suggested below!

1. Create a Course

A popular strategy for generating passive income involves creating an audio or video course, allowing you to earn money while enjoying a more hands-off approach as sales roll in. Platforms like Udemy, SkillShare, and Coursera offer avenues for distributing and selling your courses.

Alternatively, you might explore the “freemium model,” where you provide free content to build a following and then charge for more in-depth information or premium offerings. This approach is often used by language teachers and financial advisors, among others. The free content serves as a showcase of your expertise and can attract individuals seeking to delve deeper into the subject.

1. Rental Income

Rental real estate is among the most favored sources of revenue. Surprisingly, nearly 90% of global millionaires accumulated their riches through property investment.

Real estate investing is an appealing option for many due to its potential cash flow benefits. The good news is that starting your journey in this field does not require millions of dollars or even hundreds of thousands. With the investment platforms I am about to introduce, you can dive into real estate investments at a more manageable level and begin building multiple income streams through rental properties. Read on for my ideas!

Rental Income Idea #1: Invest in Private Real Estate

Private real estate investing can be a lucrative option for generating passive rental income without the hassle of dealing directly with tenants. Here’s a breakdown of private real estate investing, along with a recommended resource:

Fundrise:

  • Fundrise is a real estate crowdfunding platform that allows investors to participate in real estate investment trusts (REITs) with a minimum investment as low as $10. REITs are companies that own multiple income-generating properties, often commercial in nature, such as hospitals, apartment complexes, and industrial warehouses.
  • REITs offer a passive income stream through rents paid by the properties they own. While they may have longer liquidity periods, they can provide stability and protection against stock market volatility.

If you’re intrigued by private real estate investing and are considering a platform to initiate your journey, Fundrise comes highly recommended due to its accessibility and low entry investment.

This visual representation depicts that over the past two decades, Real Estate Investment Trusts (REITs) consistently outperformed other investment assets, including stocks and bonds, in terms of generating passive income. The orange line, representing private REITs like those found on Fundrise, demonstrates more stable returns compared to the volatility experienced by stocks during significant market downturns, such as the Dotcom Bust, Great Recession, and the Savings & Loan crisis.

Here are some additional pros and cons to consider:

Pros:

  • Lower than average fees.
  • Accessibility, allowing anyone to invest.
  • Acts as a hedge against inflation.

Cons:

  • Private real estate can carry risks.
  • Terms and agreements can be complex.
  • Involves a long lockup period for investment.

Investing in private real estate presents significant potential for those willing to take calculated risks. However, it’s crucial to conduct thorough research before making any financial commitments.

Investing in private real estate is a proven strategy for wealth-building and passive income. Ensure thorough research and due diligence before committing financially.

2. Creating designs for t-shirts

Creating designs for t-shirts is an excellent way to establish multiple income streams. This creative pursuit not only caters to your particular preferences but also enables you to sell the same concepts, which resonate with other individuals as well. TeeSpring, Threadless, or RedBubble are some of the online platforms that allow you easy upload and selling options for your specific clothing line creations.

Apart from digital commerce opportunities available through these websites mentioned above; Etsy provides a facility where people can purchase physical prints created by designers like yourself personally printed out at home! Pursuing this hobby proves lucrative because it involves something one already enjoys doing significantly while being able to create sustainable sources of financial support at the same time.

If looking further into expanding beyond just designing innovative visuals onto shirts themselves becomes feasible as additional revenue-generating outlets exist in custom printing services catering towards broader demographics requiring help executing their visions capably when needing authenticity putting forth within wardrobes worn daily during workwear events or casual outings too!

3. Affiliate marketing

Affiliate marketing involves website owners, social media influencers or bloggers endorsing a product belonging to another company by featuring a link to the said item on their platform. Although Amazon is widely recognized as an affiliate partner, companies like Awin and ShareASale are also prevalent in this space. With Instagram and TikTok gaining immense popularity, they have become significant platforms for boosting one’s audience while advertising products.

An alternative approach could be to expand your email list as a means of promoting your blog and guiding individuals towards relevant products or services.

Rewritten: There is a chance to earn money by directing visitors to third-party affiliates and receiving a commission from their purchases. The amount of the commission typically falls between 3% and 7%, meaning that substantial site traffic will likely be necessary in order to generate significant income. However, if your audience grows or you have a profitable niche (such as software, financial services or fitness), there exists the potential for earning considerable profit.

In theory, affiliate marketing is classified as passive since simply adding a link to your website or social media account can supposedly generate income. However, the reality of the situation is that without drawing readers to click on said link and make purchases, no earnings will be obtained.

There is a potential risk for those who are new to content creation and building an audience. It requires time and effort to establish oneself, attract followers and find the right formula that works best for them. This process can take some time before gaining traction with one’s desired target audience. Furthermore, there is always a risk of losing viewership as trends or newly popular social media platforms may draw attention away from established creators in the industry after having put so much energy into their platform growth efforts already.

Related Post  Top Profitable Blog Niches Ideas

4. Invest in Rental Properties

Arrived Homes is offering an attractive alternative to direct ownership for those who want to invest in single-family rental homes but don’t wish to deal with the associated complexities.

Overview of Arrived Homes:

Arrived Homes is a platform for alternative investment, enabling anyone to invest in rental real estate shares with just $100. The site features single-family homes located across several U.S states such as Arizona, Colorado, North Carolina and South Carolina. These contemporary properties are usually priced between $200k – $500k or higher.

Important factors to keep in mind:

Arrived Homes analyzes every home’s potential profitability before determining your investment hold period, which can be a maximum of 7 years. Although you have the opportunity to earn passive rental income, it is crucial that you carefully consider any fees associated with this endeavor.
Generally, investors using Arrived Homes may encounter an annual management fee close to 1%. They may also face other negligible charges such as sourcing and rental fees.

Advantages and Disadvantages:

Generate quarterly passive income through rental earnings.
Enjoy liability protection thanks to the LLC framework.
Investing in real estate can serve as a safeguard against inflation.
Cons: None stated.

The charges are often quite steep.
Your investment is not easily accessible, as it has a mandatory holding period of 5-7+ years.
There is restricted access to properties for investing purposes.

Choosing Arrived Homes as your go-to for rental property investments can be an uncomplicated method of earning income from rentals in the United States. Nonetheless, bear in mind that this particular form of investment lacks liquidity and entails higher potential risks. Prioritize extensive research and evaluate fees before making a financial commitment.

5. Generating Additional Income by Renting Out a Room in Your House

Renting out a room in your residence can serve as an effortless means of generating secondary income. It’s ideal for supplementing your primary source with additional funds from another stream.
If you require financial support daily or seek long-term solutions, renting space within the house is beneficial for starting off. You have options to lease either part of or entire rooms; dividing up spare bedrooms will allow creativity and gather more tenants individually while ensuring that clear boundaries exist between you and lessees – there should be no confusion leading to conflict.
You must choose whether short-term or long-time leases suit better depending on profitability vs ease-of-process factors: finding new renters often requires larger effort but results comprehensive profits contrastingly requiring less marketing efforts inviting infrequent leasing processes.

Checking local laws beforehand about rent policies is essential since specific places carry their own regulations which utilizing rental properties necessitate adherence too before bringing aboard any tenant— also take note if obtaining landlord protection insurance significant so protecting yourself against damages caused throughout said occupancy period stays certain lastly;

In conclusion, renting out spaces inside one’s property yields high potential benefits without much hassle provided proper research gets done ahead first — optimizing all advantages exclusive accommodations could bring might mean achieving excellent extra earnings efficiently!

6. Invest in Farmland

Dividends serve as a significant passive income stream for millionaires, providing a steady flow of money based on the amount of stock owned in a company.

How Dividends Work: A dividend represents an annual payment determined by the number of shares owned in a company. The more shares an individual possesses, the higher the dividend payments. For instance:

Dividend Example:

  • Shares owned in Company Z: 50
  • Company Z dividend agreement: $2 per year
  • Estimated dividend payment per year: $100 (50 shares x $2 dividends per share = $100 per year)

Advantages of Dividends:

  • Passive Income: Dividends offer a reliable way to earn money passively.
  • Recession Resilience: Companies tend to increase dividends during recessions to retain investor satisfaction.

During economic downturns, companies often boost their dividend yield as an incentive for investor retention. This trend is evident in the S&P 500 dividend yield chart from 2000 to mid-2020.

In times of recession, when the stock market experiences declines, having a solid dividend yield can provide financial stability. The consistent cash flow from dividends acts as a financial buoyancy, making dividends an attractive option for long-term investors.

If you’re interested in building multiple income streams through dividends, explore the ideas outlined below.

Dividend Income Idea #1: Invest in a Brokerage Account

One of the best ways to build wealth is by investing in the stock market through a brokerage account.   A brokerage account is an account opened and funded for the purpose of making trades and investing in the stock market.

Investing in the stock market can be highly lucrative, especially for long-term investors. M1 Finance is recommended as one of the best investment apps for long-term investors.

7. Earned Income

If you don’t qualify for the surveys, you can still earn money, and if you do qualify for the surveys, you’ll likely earn 5 to 10 times the amount of money than if you didn’t qualify.

You want to sign up for as many survey sites as possible exactly for that reason: Qualifying for surveys.

 One important restriction to keep in mind is that you cannot be allowed to store items such as firearms, explosives, ammunition, perishable food, etc.

So how much money can you actually earn? It honestly depends on the following factors:

  • Where you live
  • The size of your storage space
  • The amount of time for which you rent out your space

Pro Tip: If you live in a very popular area, then you probably have a higher chance of earning more money than if you lived in the middle of the countryside.

If you’re looking to rent out your storage space, then you’re also offered insurance protection (which is something that I always make sure to cover). Below are some additional pros and cons of renting out your unused space with Neighbor:

Pros Cons
Damage and theft protection for renters Increased liability
Free $1,000,000 liability protection for the host You must pay monthly service fees
All transactions are secure Increased responsibility

If you already have the space, consider turning it into an income stream.

 

Renting out your unused space is an easy way to make money from home. This could be an empty drawer, an empty driveway, or an unused room in your house. Rent it out and earn cash.

8. Get Paid to Go Grocery Shopping

 Just keep in mind that if you do want to become an Instacart shopper, you must be:

  • At least 18 years old
  • Have a valid driver’s license
  • Have a working smartphone
  • Be physically able to lift between 30 to 40 lbs. of groceries

 If you work during prime time (lunch and dinner time) and if you’re willing to deliver in a city, then your chances of earning more money increase significantly.

My favorite part about Instacart is that you can set your own schedule (since you’re effectively your own boss). Here are some more pros and cons of Instacart:

Pros Cons
You can earn additional money through tips Might be exposed to disgruntled customers
Flexible hours Wear and tear on your car
You could receive free groceries Not all orders pay that much money

Honestly, if you have extra time and if you like taking your car out for a spin, then Instacart could be the app for you.

If you want to earn extra income, then consider delivering groceries with Instacart where you could earn up to $2,000+ per month.

 

9.  Rent Out Your Car

 Since the pandemic started, I probably have used my car only a handful of times – typically to go to the grocery store and to the vet. So my car has been sitting idle in my garage. …Now imagine if you could turn your idle car into a money-making machine

HyreCar: Rent out your car and make an extra $9,000 per year.

Learn more

With HyreCar, you can elect to rent out your own car to people who are looking to use your car to make money with Uber and/or Lyft. I find that as a car owner, you can set many of your own restrictions, including:

  • Your price
  • Insurance requirements
  • The length of your lease
  • The pick-up and drop-off of your car

 Typically speaking, you’ll probably find more success renting out your car through HyreCar if you live in a city like Los Angeles, Chicago, Atlanta, etc.

The good news is that you can also set the requirements for the length of time that you rent out your car. In most cases, you could expect to earn somewhere around $500 to $700 per month with HyreCar, which isn’t bad, especially if your car would have just been sitting idle in your driveway. Here are a few more pros and cons of HyreCar:

Pros Cons
Extra income stream You may be exposing yourself to risk and liability
Driver is insured by HyreCar when not driving for Uber, Lyft, etc. It might be inconvenient to arrange car pick-ups and drop-offs
You can talk to a human customer service representative May have to pay up to $1,000 in deductible costs for vehicle damage

HyreCar could be a great way to convert a non-income-producing asset (your car) into a cash machine. Want to make even more cash? Consider using Neighbor to rent out the (now) empty space in your garage or on your driveway. Cha-Ching!

 If you have a working vehicle that you’re not using and want to build multiple income streams, then consider renting out your car to someone else who will use your car to make cash through either Uber or Lyft.

 This is a course that will teach you step-by-step how to spot the “valuable trash” and how to flip it and make a profit. Check out what you’ll learn with the table of contents here:

The good news is that you probably won’t have to spend too much time on the items that you’re flipping. You can find “valuable trash” anywhere, such as:

  • Old furniture left on the side of the road
  • At your local Habitat for Humanity store
  • Antiques shop
  • Yard sales
  • Goodwill

…I could go on and on. Personally speaking, I’m a big fan of bargain shopping myself, and it’s true that you can find value if you look hard enough.

“One man’s trash is another man’s treasure.”

I would note, however, that if you’re not proactive and if you find yourself procrastinating, then flipping junk for cash probably isn’t the right next step for you. That’s because you have to take the initiative yourself:

  • Find the “trash”
  • Develop a vision to flip it
  • Assort the materials needed to flip it
  • Put in the work to actually flip your “trash”
  • Market your “trash” to sell it and make a profit

The cool thing about the Trash2Cash guide is that it gives you tips on how to locate over 100 things you can easily find today. Here are some more pros and cons to flipping:

Pros Cons
You are your own boss Could be stressful
You can build things with your hands You won’t do well if you procrastinate
You could earn unlimited money Your income will not be consistent

While it might take you some time to find your groove when it comes to flipping junk, you could make this a full-time business model.

One of the cheapest ways to build your own business, and potentially earn $100,000+ per year, is to flip trash for cash. If you like creating, building, and selling, then this additional income stream should be on your to-do list.

Related Post  Side Hustle Portfolio

 

10. Royalties

Sales from my eBook are one of my favorite income streams.

 An eBook is simply the electronic format of a book that would otherwise be printed. You can read an eBook on a computer, tablet, phone, etc.

The best part about an eBook is that it virtually costs you $0 to start – at least that was my personal experience. Modern business owners would jump for joy if they could earn 100% in profit without any upfront costs. That’s why the eBook can be so effective. The good news is that you can write about anything in an eBook – as long as you:

  • Are professional
  • Are grammatically correct
  • Are experienced in your subject matter

You don’t even have to be a pro at something, just show that you can be trusted by your reader because you have some sort of experience. Here are a few additional pros and cons to writing eBooks:

Pros Cons
You set your own schedule Can be a lot of upfront work
Very little upfront cash is needed You need to be patient
Earn passive income for life Sales can be inconsistent

The best part about writing an eBook is that you can earn money on this product for years to come.

 

Writing an eBook is likely one of the best ways to earn a recurring income stream – practically for life. You’ll have to put in hard work in the beginning of your eBook journey, and as long as you market and promote your product properly, then you could expect consistent income in the future.

11. Business Income

Business Income Idea #1: Build a 7-Figure Blog

I want you to picture the following scenes:

  • You’re at the beach or pool
  • You’re soaking up the warm sun
  • Your laptop is on the table next to you
  • You just heard a “ping” and see you earned $200

You are making money while actually enjoying life. Believe it or not, you can actually make this scene become a reality if you start building a blog.

Did you know? You can earn $10,000+ per month by blogging.

And you can literally write about anything:

  • Cars
  • Dogs
  • Food
  • Music
  • Fashion
  • Finance
  • Shopping

Here’s how much money you could expect to earn if you started a blog:

 

It’s not easy to make money blogging. Based on the chart, about 50% of bloggers reported earning less than $1,500 per month for working about 8 hours on their blog each week. However, if you really dedicate yourself to your blog, you can really see a positive difference.

 With blogging, the amount of time and effort you put into your blog will typically reflect your future blogging income potential.

Here are some of my favorite ways to earn money blogging:

  • Selling eBooks
  • Selling courses
  • Sponsored posts
  • Affiliate marketing
  • Selling your own services
  • Selling your own products

If you are thinking about getting into blogging, then just make sure you are actually passionate about it and not just doing it for the money. Blogging might be right for you if you:

  • Like to write
  • Love to create content
  • Are focused on the long-term
  • Are passionate about a certain topic
  • Understand how to work with computers

 

If you’re a beginner blogger, then I’d choose Bluehost because:

  • It’s simple
  • It’s easy to use
  • It’s relatively inexpensive

If your ultimate goal is to build multiple income streams for the long term, then I encourage you to consider blogging. It can change your life. Here are a few more pros and cons to blogging:

Pros Cons
Unlimited income potential Beginning stages are tough
Flexible hours Will require a lot of work
Very low start-up costs Results take years to show

If you want to break free from the rat race and the daily 9 to 5 grind, then building a blog is likely one of the best ways to escape.

 

Blogging is arguably my favorite activity here. You are your own boss, you can create whatever you want while connecting with interesting people from around the world – all while earning money.

12: Build a 6-Figure Social Media Empire

Monetizing Social Media

Did you know that you could make 6-figures, and potentially even more than 7-figures, just through social media? Digital stars are becoming more and more popular – and their paychecks are skyrocketing.

Celebrity Salary
MrBeast $54 million
Jake Paul $45 million
Markiplier $38 million

Ok, so these numbers are the outliers, but seriously, you can make a lot of money from social media. My go-to platform is Twitter. While I don’t make millions (yet!) from Twitter, I do earn a consistent monthly income that ranges between $1,000 to $3,000 per month – just from Twitter. Now, I’m going to show you how you can make money from your Twitter account too. First, check out the content creation guide,

 

I’m not kidding when I say that this course works. Here is some proof:

  • I earned my very first dollar from Twitter about 1 month after starting this course
  • I gained over 80,000 followers in 1 year, just by consistently implementing the strategies in this course

Note: You don’t need to have 100,000’s of followers or even 1,000’s of followers. Quality matters more than quantity.

Here are the steps you can take to build a quality audience:

  1. Follow the strategies in the Create 24/7 course
  2. Design an appealing social media profile
  3. Create consistent content with value
  4. Engage with your audience
  5. Build relationships

As long as you are consistent with your branding and with your message, you should start building a high-quality audience.

Caution: Building a social media following can take a lot of time – and hard work. You have to be patient with yourself. Once you have built a loyal following, the next step is to monetize your social media account through strategies like:

  • Ghostwriting
  • Sponsored posts
  • Affiliate marketing
  • Selling your own products
  • Selling your own services

Here are some more pros and cons to building a social media empire:

Pros Cons
You are your own boss Not a good fit if you don’t take initiative
Income earning potential is unlimited You have to be patient
You can work from anywhere Requires hard work before results show

In my opinion, building a social media empire is 100% worth the upfront effort and time.

 

If your goal is to build a business with flexible work hours, passive income, and unlimited profit potential, you may want to consider creating a social media empire. It’s a lot of hard work in the beginning, but the results can and will likely pay off – as long as you’re diligent with your efforts.

13. Interest Income

Interest Income: Optimizing Savings

 

Out of all the income streams listed, this is probably the least important income stream. Why? Because the interest you can earn from a regular savings account is virtually nonexistent. Check out the interest rates from a national bank here:

[Image: National Bank Interest Rates]

The image above shows that you get 0.01% annual percentage yield on your savings. Basically, you’re getting next to nothing. With that said, I’m about to show you 2 proven strategies to optimize your interest income below.

Interest Income Idea #1: Invest in High-Yield Savings Accounts

A high-yield savings account (aka HYSA) is a liquid and accessible savings account that is generally only found through online banks. You typically earn a much higher interest rate than with brick-and-mortar banks. Let’s take a look at a classic example of the savings account interest rates offered at a local brick-and-mortar bank in my area:

 

That is a 1,425% percent increase when you level up from the 0.04% interest rate (for brick-and-mortar banks) to the 0.61% interest rate (for the Axos Bank high-yield savings account). So if you want to maximize the interest earned on your savings, consider checking out the high-yield savings account from Axos Bank

 

14. Capital Gains

You may remember from the previous income streams that investing in real estate can be incredibly profitable. Not only do you earn income from the rents paid, but you also earn money from capital appreciation, since real estate is an appreciating asset. The picture below illustrates this concept well:

[Real Estate Appreciation Illustration]

And if the pandemic has taught us anything about real estate, it’s that property values typically go up. When prices are up, that’s typically a sign that you want to consider selling your property, and you’ll earn money based on your capital gains.

Capital Gain Definition: A capital gain is any profit (sale price – purchase price) you make from the sale of property or other investment.

But, real estate is not the only way to earn capital gains. Check out these other lucrative ideas below.

15. Invest in Fine Art

While the world of fine art is often only available to the ultra-wealthy, that’s no longer the case.

Masterworks is an alternative investment platform that allows virtually anyone to buy shares of fine art. With Masterworks, you could:

  • Diversify your investments
  • Protect yourself against inflation
  • Invest in million-dollar fine art for a fraction of the cost

Artwork could also protect your net worth because it’s not really correlated with stock market volatility, based on the graph below.

In the image above, when the S&P 500 goes down (red bar), nothing happens to the contemporary art market (it goes neither up nor down). This could be a good thing, since you would protect the value of your art assets, even during potentially rough economic times.

 One of the reasons why I’m not the biggest fan of investing in fine art is because of the high fees and the long lock-up periods.

While you might not earn an active income stream on your fine art investment, you could earn a profit once the fine art is sold. So, just make sure you do your thorough research before committing to the fine art market. Here are some more pros and cons to fine art investing:

Pros Cons
You have access to fine art worth millions of dollars Your investment is typically illiquid
Fine art is a good diversification feature Investing in fine art can be risky
Fine art is stored and insured in a safe and secure facility The fees are much higher than your low-cost index fund

If you are interested to learn more about Masterworks and the fine art investing world, then check out my latest Masterworks Review.

Another proven strategy to build multiple streams of income is by investing in fine art. Fine art is a protection against inflation and could help you earn a profit, as long as you are willing to stay invested for the long run.

 

 

Multiple Sources of Income: FAQs

What are considered multiple streams of income?

To have multiple streams of income means that you are not just relying on 1 source of income to live and save for retirement. Instead, you are earning money from 2 or more income streams.

How do you create multiple streams of income?

How many income streams do millionaires have?

Multiple Income Streams: The Bottom Line

There are so many ways you can start building multiple income streams even in just the next 6 to 12 months. Keep in mind that creating multiple streams of income is not an easy task, as it typically takes:

  • Hard work
  • Research
  • Patience

Depending on the type of income stream you are building (like a long-term side hustle), then you might not see results within the first 12 months or even the first 24 months. Unless you win the lottery, you probably won’t get rich overnight. So, put in the work and stay focused on the long-term goal of building wealth and you’ll start seeing results. Your bank accounts will thank me later. Do you plan to create multiple streams of income? Let me know in the comments section below.

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