Is this even possible?
Someone once told me that by 30 years old you should diversify your income so that you no longer need to rely solely on your paycheck to support yourself. In fact, they recommended that you have 7 different streams of income, so if one fails, the others can help support you. According to the IRS, these are the most popular sources of income for millionaires:
1. Dividend income from stocks owned.
2. Earned income from a paychecks.
3. Rents from rental real estate.
4. Royalties from selling rights to use something they’ve written or invented.
5. Capital gains from selling appreciated assets.
6. Profits from businesses they own.
7. Interest from savings, CDs, bonds, or other lending activities.
When I first heard this I immediately thought to myself… “Who has time for that?” I was already working 60+ hours a week, how could I possibly fit in 6 more jobs to earn this extra income?
Also, let’s be real, a few of these are still out of reach for most of us… I can’t even afford a house for myself right now, never mind an investment property. And, as great as being an entrepreneur would be, with my job commitment starting another full scale business is out of the question.
So instead, in an attempt to diversify, I chose to focus on some of the income streams that would take up the least amount of my time… The passive income streams. This is income that you earn even when you aren’t necessarily actively working to earn it.
Here are some of the ways I set myself up to earn it:
Investing in stocks and bonds
Drop Shipping
Etsy Store Sales
Affiliate Marketing
I won’t lie to you and say I am making millions of dollars doing these things and I‘m certainly not in a place where I can quit my job… But they take minimal effort and money to set up initially, and they help put a few extra dollars in the bank every month to pay for my Sweetgreen obsession.
I’ll expand on each more individually in the future so you can do the same.
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