Income is defined as the money you received through work or business. There are 8 income streams that you should be working towards. You don’t have to achieve all 8 income streams to attain your desired financial stability, but the more income streams you check, the high chance you can achieve that financial freedom and security you wanted. We’ve listed down 8 income streams that you should build to give you an idea.
These income streams will provide you with different output and opportunities. To fully understand the difference of each income stream and to know what should you should tick first out of 8, continue reading, and start your journey for your financial freedom and security.
1. Earned Income
The basic out of the 8 income streams that you should build is earned income. Earned income is from working from a job or a profession. This is the income stream that you probably have now. Generally, an employee works a minimum of 40 hrs a week and gets paid based on their hourly wage or fixed monthly salary.
The company is buying your time and skills for the operation of their business. Though this is the easiest to attain among the 8 income streams to build, you should still have other income streams to tick out of the list to ensure financial stability. The more income generators you currently have, the better. It is good that you earned a fixed income every month, but always remember that you will not be working until you are gray and old.
2. Profit Income
Profit income is an income stream that is common around us. There are many ways to achieve profit income but the most popular is doing business. There a 3 major types of business: service, merchandising, and manufacturing.
Service is a business that you provide a service to a person in exchange for a fee. Examples are restaurants, beauty salons, and laundry shops. Merchandising is a buy-and-sell business. You buy products at a lower cost and sell them with a mark-up. Examples are groceries and retail stores. You can do service and merchandising business at the comfort of your own home at Bria homes. Check out the best and easy sideline jobs you can do at Bria Homes’ website. Manufacturing is the transition of raw materials to a finished product. Examples are shoe factories and textile companies. You can pick one of the 3 and start your profit income stream that will produce you a variable profit every month.
3. Interest Income
Interest income can be simple and complex depending on your investment. The simple way is to open a bank account and your money will earn interest over time. Surely, the interest is not high ranging from 0.50% up to 4%. You can go to the nearest AllBank branch and open an account. If you want a much higher interest yield and you have excess cash, you can also try a time deposit or MP2 Pag-Ibig that will idle your money for a period of 5 to 10 years. This MP2 is one of your ways to maximize your Pag-IBIG contributions too.
Another way to have interest income is to lend money to people to start their business or other matters. Though there are risks in doing so, you can implement a compounding interest wherein you will be paid an interest income on top of the existing interest income. You earn interest income by lending your money.
Surely, this interest income stream is not for everyone. If you are not knowledgeable in this field, might as well use your money in other income streams below. But with enough due diligence, this income stream is something that you should try to build, at least.
4. Residual Income
Residual income is whereby you get paid even though your job was done a long time ago. This is actually a great income stream to build, to take interest in and invest time in. One of the prominent residual incomes is to do a vlog. Vloggers upload a video on social media and as long as people are watching it and subscribing to their channel, you will get paid. One of the wonders of residual income is that you can do it whenever you want to and in your free time.
Another best way to earn residual income is to write a book. So if your hobby is to write, might as well start writing a book that will be available for a long after you wrote it. J.K Rowling is the author of the Harry Potter series, though the book and movie have been done years ago, her books still are sold today.
Imagine earning money by doing something you are passionate about. Share your skills and talents with the world and earn a residual income far greater you are expecting. You will just have to invest time.
5. Rental Income
Rental income is one of the most recommended income streams. You can invest your money in a family house, duplex/triplex, condominiums, and such. By renting out your property for residential or commercial purposes. You will get a high return and receive a monthly rental income. You can check out affordable houses and lots, and condominiums at Bria Homes. Learn also the importance and advantages of houses and lots as investments at Bria Homes’ website.
You may start your research in what type would you like the most, to have your property rented out for a family, or a room for rent to working professionals, or a commercial lease to a company. Whatever you decided on, a rental income is a solid income stream that you must work and invest in.
Acquire a house and lot at Bria Homes today, have it accumulate your rental income, and boost your financial stability.
6. Capital Gains Income
Capital gains income is an income derived from selling appraised assets. An appraised asset can be land, house, building, equipment, vehicle, and a lot or more, which increase in value and were sold at the same time. For example, you purchased land 5 years ago at 2 million pesos, and today’s market value of the land is 4 million pesos and sold it at market value. The 2 million pesos excess is your capital gains income.
You can start a company or purchase a building that will be worth more than what you paid for and enjoy your capital gains income. Check out Bria Homes, they offer affordable houses and condominiums and start acquiring assets that will become an income stream for you.
7. Royalty Income
Royalty income is a great way to earn a passive income. Your earn royalty income from others using or selling your intellectual property. A common example is writing books and providing the rights to a producer to produce your books and sell them. Every time they sold a book, you get a royalty income. Another great way to earn royalty income is through franchises. A franchise is wherein you provide rights to a person or an entity to operate and use your business name, logo, marks, and sell your products to customers. Whenever they sold a product, you will get a royalty fee and the rate depends on your contract. You should start a business today and use it to earn royalty income.
8. Dividend Income
You can earn dividend income by buying stocks at the market. This income stream comes with high entry barriers and carries a lot of risks. But with the right education, you can achieve in earning dividend income. It is promising to invest your money in stocks as it will let your money earn income over the years or as long as the company is operating. Know the market and the company before investing, so you can lessen the risk of loss
These are the 8 income streams that you should try to build. How many do you have now? Start working and achieve your freedom by doing more than 1 income stream. Over time, this will boost your financial status. The key is to start today!
