Go from one to multiple streams of income using your 9-5
THE STACK #18I once saw a quote that said, "Having one stream of income is dangerously close to having no stream of income," and boy, that resonated!
The past three years have shown that you could lose your primary source of income at a moment's notice.
Having multiple income streams helps keep you secure.
Multiple streams does not mean multiple jobs.
You don't need to have 100 side hustles to earn extra income.
I personally loathe side hustle culture.
I envision stress, burn-out, suffering and no sleep whenever someone mentions their many side hustles. I'm not about that life.
In today's STACK, I'll share ways you can harness your 9-5 into multiple income streams with little to no side hustling.
THE STACK
Step 1: Maximize your 9-5 income
Ensure you're getting the maximum income you can for your level of education, skills and experience.
Yes, this means getting out of your comfort zone.
Applying to that dream job that scares you.
Asking your boss for a raise.
Negotiating at your next interview.
According to a Linkedin study, 20% of women apply to fewer jobs than men.
Women apply to jobs and senior roles only if they are 100% qualified, unlike their male counterparts who apply to jobs if they are 60% qualified.
This means we leave money on the table by not asking for more.
Here are some helpful tips to maximize your income:
○Update your LinkedIn profile
○Leave your status as "open to work" so recruiters can contact you for new opportunities
○Update your resume once a year, highlighting all your achievements; this could be used to negotiate a raise during your next review
○Interview for a new role at least once a year; this will help sharpen your skills, boost your confidence and help you see what's out there
○Say yes to new roles, even if it scares you.
Step 2: Create a long-term plan
What are some of your long-term goals?
Do you want to retire early?
Do you wish to own multiple properties?
Envision the lifestyle you want to live 5, 10, 15 or 20 yrs from now.
This will be your WHY.
Having a strong why will be your biggest motivator.
Step 3: List your potential streams of income
There are seven types of income streams:
◦Earned income
◦Dividend income
◦Rental income
◦Interest income
◦Profit Income
◦Capital gains
◦Royalty income
Choose at least three streams of income that interest you.
Focus more on the income streams that require less time and effort (hint: dividends, capital gains, royalty).
Create a roadmap on how you will turn on the income streams and how long it might take to achieve your goals.
Having a goal will help determine how much you need to invest today to get to these goals.
Step 4: Invest a percentage of your 9-5 income into these new income streams
You've probably heard of the phrase; it takes money to make money. This is true for most of the income streams listed above.
Based on your goal from step 3, determine how much you will need to invest monthly.
Invest that income into one or more income-producing assets.
Example:
To earn a dividend income of $100 monthly, you will need a dividend portfolio of $2,500 and a 4% dividend yield.
Step 5: Reinvest your profits
Your first few years of building multiple income streams will be the slowest and hardest.
Focus on building the foundation by reinvesting your income into the same or another asset.
Example:
If you earn rental income, rather than spending all of the profits, reinvest the profits into saving for another rental property.
Remember, you still have your primary source of income, which should be able to cover your living expenses.
If you're starting to rely more on your extra income streams to survive, revisit step 1.
Do steps 1-5 repeatedly, and soon enough, you will have an empire on your hands and can finally say bye to your 9-5.
Or keep it.
I created this visual, and to date, it has been one of my most liked and reshared posts on Instagram.
THE TOOL
BOOK RECOMMENDATION
Lean In by Sheryl Sandberg is one of the books I read that helped me realize my worth, go for jobs I wanted and improve my negotiating skills.
I highly recommend this book if you're looking to switch careers or struggling with imposter syndrome.
THE ACCOUNTABILITY
When was the last time you updated your resume?
For this month:
✓Update your resume highlighting your achievements over the past year (or since you last updated it)
✓Update your LinkedIn profile
✓Change your LinkedIn status to "open to work."
THE COURAGE
THE KNOWLEDGE
DIVIDEND
This is a distribution of profits by a company to its shareholders.
You don't have to sell your shares to earn dividends.
You get paid dividends regardless of how the company's stock is performing.
In the upcoming STACK newsletter, I will be sharing more on
☞How to earn income through the 7 types of income streams
Talk to you next week,
But until then...Keep Stacking!
about the newsletterEvery Saturday, subscribers will receive one money tip, one tool, one actionable step, one word of courage and learn a new finance term to help you gain control of your finances in less than five minutes.
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