I know you’ve probably heard these numbers before, but they are worth repeating.
Millionaires have an average of seven (7) streams of income. SEVEN!! I’ve discussed this topic before in my blog but given the times we are facing today, with people losing jobs and the uncertainty of businesses, I thought it would be a good idea to re-visit. When COVID-19 hit, how many of you had an emergency fund sufficient enough to cover all of your expenses for 6 months? When you realized you weren’t getting paid, who had a plan in place? I know I wasn’t ready, and a number of my client’s weren’t either. Which is why I am getting back on the ‘soapbox’ about side hustles and multiple streams of income.
Everyone, and I do mean everyone should be building their own multiple streams of income so that when something happens to one stream, you still have other ways to make money. This requires us to have a discussion about passive and active income and how you can build your side hustle in a weekend with some help from a friend (and client) of mine.
I’ll start with the easiest to explain: Active Income.
Active income is the money you make from a job or from services you provide. It’s called active because in order to earn it, you’re ‘actively’ working. It includes salaries, tips, wages, commissions and business income. All the things that include being active or work!
Passive Income (the income you want) is not all together free from work, but once you put in the work, it can be easy sailing from there on. Ergo, the income is called ‘passive’. Let me explain. (By the way, I love using the word ‘ergo’).
Passive income comes from ‘assets’. Something – which can be many things – is making money on its own and paying it to you. Interest from CD’s or dividends is passive income. Rental income, to some degree, is passive income. Royalties you get from an e-book you wrote is passive income. Courses are passive income. Are you catching on yet?
When more money is needed, most people immediately go to an ‘active income’ option. Like getting a second job, or starting a business (which is great), but another option would be to seek out passive income opportunities – ways you can make money and continue to make money with little or no activity (yes it’s possible).
There are several benefits to having passive income, the most obvious of which is generating more money for yourself and enhancing your quality of life. What would you do with extra money you made? Travel more? Save for a new house? Pay off debt? Retire early? The options are limitless!
“Having a side hustle is no longer an option. Creating a side hustle is a necessity.” Says Dr. Deana Stevenson, CEO and Founder of Doc Deana Enterprises, an Educational Consulting Firm. “The new job security is taking what you know, packaging it, marketing it and selling it as your side hustle.”
Now, be aware, you have to diversify the streams. Take myself for example, I have a full-time job (which is a blessing) where I receive a salary and medical benefits for my family. I also have my coaching and legal consulting business which is my side hustle (and my baby). It is here where I have my passive income. I create content to help small business owners succeed in their businesses, properly structure and cover their assets. I also am involved with various MLM opportunities, my fav being Total Life Changes® and that’s simply because the products are awesome, and I have used them to help me lose almost 50 pounds in the last 6 months! You see where I am going with this?
You should be seeing the value of having multiple income streams. Do we need to have seven (7)? Maybe eventually, but you can make extra money by having 3 or 4 streams. It’s completely up to you. What’s important is to have more than 1. Creating many streams can take some time and will definitely take some work but eventually it becomes clear how beneficial it can be. Two years ago, my side hustles were costing me money, today, I am able to travel, put aside for my retirement, pay off my debts, pay for college for my son and practice much better self-care for myself.
So, what’s stopping you? Are you ready to dive in and create your multiple streams? Like I mentioned in the beginning of this post, I’ve got some help for you. For $27 and the investment of a little time next weekend, my girl Dr. Deana will help you organize your side hustle and get your ideas down on paper. Click here to secure your spot now because there are only a limited number available at this price.
Thanks again for stopping by. Don’t forget to check me out on Facebook and Instagram at @CrystalClearEsq!
Until next time….