A few weeks ago, we talked about some common practices among everyday millionaires. One that stuck out was the fact that most see the importance of generating multiple streams of income. On this week’s podcast, we are diving a bit deeper into the subject. This week we will be focusing on five streams of income, and practical ways to implement them.

We would be remiss if we ignored your biggest wealth producing asset, your day job. This is arguably what you are best at, and because of that you earn the most compensation for it. If you aren’t utilizing your best and most marketable skills, it may be time to change where you clock in every day. While your best skills may not necessarily correlate to what you enjoy the most, it does represent your best opportunity to generate income. In turn, your day job may help to finance the activities that you enjoy the most, and lead to another source of income generation. Take advantage of opportunities in the workplace to grow and market your skillset. Many companies offer tuition reimbursement or other on the job skill training that can help you develop your craft, and better prepare you for the work that you really want to do long-term.

The next stream of income that we will focus on is securities investments. The idea here is to generate income and growth through a portfolio of stocks, bonds, and mutual funds. This is a more hands off approach. Dividends and capital gains provide a real boost to long term savings that you simply cannot realize through traditional deposit accounts, especially in low interest rate environment. This is money that is working for you when you are not working.

One of the most popular forms of income for the financially independent has been and will always be real estate investment. Like securities, owning real estate has historically equated to higher rates of return than traditional savings vehicles. Whether you are flipping for profit or generating monthly income in the form of rent, real estate can be a great asset in your portfolio. This however can present some real challenges. If you have no interest in being a landlord, it may not be for you. Unlike securities, it’s very hands on, unless you are willing to pay someone else to fix that leaking toilet at 10 o’clock on a Sunday night.

I’ve made reference to traditional deposit accounts a couple of times already. While historically speaking this is not the best way to amass a fortune, everyone needs access to cash and it doesn’t hurt to earn a little interest. Money market accounts, CDs, and the like can offer higher interest rates than traditional checking and savings accounts. If you are comfortable with online banks, you may be able to find more competitive options than the brick and mortars. The trick is to make sure that you are not overfunding these types of accounts as there is a real opportunity cost when ignoring alternatives. We will explore how much is too much in an upcoming episode.

Last but not least, the side hustle. Technology has removed many a hurdle to starting a side business. Think about something that you love and enjoy, and you know more than the average Joe about. Find something that you don’t mind spending your free time on and turn it into extra cash. Some people buy and sell things through ebay or Facebook Marketplace. Oftentimes these side businesses turn into a full-time gig. The key is to be creative and enjoy it.

These are just a few ideas. Think about the things that you are already doing. Find a way to channel that energy into ways of accomplishing long term goals. Enjoy the process and enjoy this recipe in the meantime. Cheers!

The Long Island Iced Tea

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