Do you want financial independence?
If you want financial independence, adding another stream of income is a great way to fast-track your path to wealth. Income from different places provides a cushion of support for when life takes a turn, and gives you the ability to save, invest, or spend, depending on what’s important to you.
The Recession of 2008 and COVID
I discovered this myself during the Recession of 2008. Housing prices fell, unemployment rose, furlough days were mandated, and many people found themselves pummeling through savings and defaulting on loans because their income had been eliminated or drastically reduced.
COVID has had a similar impact, except that housing prices have continued to rise. Thankfully, because of the CARES Act, many have had the option to defer loan payments, however those accommodations will soon expire. Adding another stream of income could be the golden ticket that allows you continue to pay bills, save, invest, or continue living your current lifestyle.
Income can come from many places.
Income can come from many places. For most people it comes from a full time job. There is nothing wrong with this, except that gone are the days of job stability. Besides the external forces such as the economy that impact our wealth, we also experience personal ups and downs such as death, divorce, illness, the cost of having kids, moving, and changing jobs. Each of these impacts your monthly cash flow, and your ability to pay bills, save, and invest, and that’s why I am such an advocate of multiple streams of income as a part of your wealth building strategy.
Besides a full-time job, income can come into your life through a part time job, side gig, freelance work, real estate, network marketing, royalties, a side business, full-time business, subscriptions, memberships, dividends, and more.
Having multiple streams of income, or just one more, means that when life takes a turn, you have something to fall back on.
How you can add another stream of income to your life
Here’s what happened to me, and how you can add another stream of income and reach financial independence too.
In 2008 I had a great job as a marketing director. I had a company car, benefits, and a got a paycheck every two weeks. One day my boss called me into his office and said that my position was being eliminated. There was no room in the budget to pay me anymore. I was laid off.
A few years prior I had discovered a company called Arbonne which sold their vegan, Swiss, botanically-based skin care products online and through a network of consultants. It was open to anyone who wanted to be a part of it by paying $79. This gave me a product discount and the ability to sell. I was so enamored with the products which had worked wonders on my sensitive skin, that I began sharing them with others. Pretty soon I was making about $300-$500/month on the side of my marketing director position. It paid for my car and I was happy with that.
Direct Selling
This stream of income is known at network marketing. Products are only sold through a network of distributors, and because of this there is no up charge on the price of the product to cover the cost of retailing and advertising. For this reason, companies set up like this are able to offer a higher quality product at a lower price, as retailing and advertising make up a large portion of what you are paying for when you buy at say Sephora, Nordstrom, or any other department or retail store. There are thousands of companies out there that you can be a part of. For more information, check out the Direct Selling Organization.
Little did I know, this part-time side gig would replace my full time income. When I was laid off, the only income I had to fall back on was my Arbonne income. I decided to get more intentional with my business, made a goal of replacing my full time income, and focused on growth. I showed up every day, followed the system, and the money began to roll in.
The Key to Making More Money
I’ve discovered that this is the key to any successful money-making endeavor. Just keep showing up. Making money requires work. It doesn’t have to be hard, but it does have to be consistent.
Real Estate is Another Great Way to Add Income
Meanwhile, I was also interested in real estate. I was renting a room in my house to a lovely woman who paid me $500 a month. I saved this money, or used it to eliminate debt. After doing Arbonne for a couple of years I got another full time job. While it didn’t pay me a high salary, it offered me secondary benefits that filled my personal cup, such as great leadership, learning new skills, and being back in the business world. I continued doing Arbonne on the side.
Start a business on the side
Once I was debt-free, I used my additional income to start another business teaching personal finance. I did this in the evenings, after my full time job ended at 5pm.
Consider contract or freelance work
During that time, I was approached by a tech company based on London who asked me to do some contract finance and HR work. I accepted and when this income exceeded what I was making at my full time job, it was time to leave the full time position.
Other streams of income
Over the next few years, using the money I was making on the side, I invested. I bought another property, purchased some mineral rights, and discovered new ways to make my money grow. I researched tax lien investing, stock market investing, subscriptions, memberships, royalties, and more. I took action on the ones that were aligned with my personal interests, unique skills, and current resources.
Book royalties
Writing my new book Simple Wealth was an important milestone for me both personally and professionally, and it feels amazing to have my story and system all wrapped up in a beautiful book that is getting incredible reviews. I you haven’t ordered your copy yet, you can get it here.
When people share with me how my book has changed their life, helped them eliminate debt, put $50,000 in the bank, or inspired them to start a business or create a new stream of income, that feels really good.
Seize opportunities
Every opportunity is a lily pad. We jump from one to another on the path to our own unique goals. My ultimate destination was to reach financial independence so that I could have complete autonomy to do what I want, when I want, with whomever I want. It took me about 17 years to reach FI, and now my mission is to help as many people as I can do that same thing. If you want help building personal wealth or reaching financial independence, reach out and schedule a coaching consultation.
