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Building a Career from Different Income Streams
Your business model
- Ensure you have a stable income stream before you take attention away from it.
- Let your audience, customers, and fans tell you what they want. If you can understand when your market wants something from you and if they are willing to pay for it, creating other revenue streams will naturally develop.
- Testing ideas is essential.
- Not all projects should be monetized. Some will pay you back in other ways like creatively energizing you or letting you experiment and fail, that may be valuable.
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Portfolio career
Multiple income streams can add up to be equal or more than a full-time salary.
Your career does not have to be a linear journey to be successful, nor do you have to be confined to just one type of work.
Diversify the way you work
The full-stack freelancer has proven to be a new kind of stable where the smart thing to do is to have a diversity of income streams.
You don't have to use the same skill set in all the work you do. You can mix and match the different ways you want to work, how you want to spend your time, the clients you prefer, and the frequency in which you want to get paid.
Your business model
- Ensure you have a stable income stream before you take attention away from it.
- Let your audience, customers, and fans tell you what they want. If you can understand when your market wants something from you and if they are willing to pay for it, creating other revenue streams will naturally develop.
- Testing ideas is essential.
- Not all projects should be monetized. Some will pay you back in other ways like creatively energizing you or letting you experiment and fail, that may be valuable.
Create an “income pie”
Working hard and a lot to make more money is a myth. Each pool of income requires different amounts of effort, and the income can fluctuate from year to year.
Creating a pie chart can help you see where to put more energy into the work that aligns with your goals.
The quest for passive income
The idea of a diversified portfolio is to have different kinds of active and passive income.
Passive income is investing time and money up front to help earn money continually even while you sleep. It can take many forms, including digital downloads, e-books, selling stock imagery, licensing your artwork. However, passive income sources still require varying levels of upkeep.
From full-time to multiple income streams
- When you're fully self-employed, you'll need to earn more because you'll need to pay both employer and employee taxes, pay your own health insurance, fund your retirement, and cover your operating overhead.
- You can find incremental ways to make the transition to self-employed. Negotiate with your employer to go part-time or remote for some time while taking on a side gig or creating content.
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How you can invest in yourself
The foundation for every personal pursuit in life is to invest in yourself. It can take years. How you can do it:
- Learn to build something. If you can create something valuable w...
Income generation
Once you have ideas, you want to put your ideas to work. If you do that, you can start creating value. When we create value, we generate income.
During the pandemic for example, most restaurant owners had to focus on other ideas to generate income. Building wealth is not easy. We need a constant supply of ideas.
Asset investing
It is anything that will increase your wealth without personal labor.
- Businesses. This is a broad asset class. You can buy dividend-stocks on the market, and then the companies will pay you a share of the profit. You can start your own business. You can buy into other private businesses.
- Bonds. When you invest in bonds, you collect interest just like your bank is collecting on a mortgage.
- Books. A good book will generate cash for a long time.
Assets that don't generate cash, but might increase in value.
- Land. A piece of land generates cash when you rent or lease it.
- Collectibles such as art or watches.
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Time is not money
Even if these two share some connections, time isn't money. Time is energy, money is a thing. And they each have power over our lives.
Money is infinite but time is...
Disrupting the time-money relationship
Investing and passive income disrupt the time-money relationship.
To make money without having to trade any of your time frees up your time to ultimately do things that are more important to you.
The best investing strategy
- Make as much money as you can
- Keep your expenses low
- Invest the difference
- The more you invest, the faster your money will compound and bring you more money
- Sit back and earn money with no effort. You are no longer trading your time for money.
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Increase Your Income
Formal education, practical experience in your field and doing a good job is important to earn a high income.
Most professionals see their incomes increase over time. If you can gain high ear...
Save and Invest
You’ll only build wealth if you save a reasonable percentage of those earnings.
- If your employer offers a 401(k) plan, increase your contribution.
- Automatically send a portion of your money to your savings or investment accounts before you can spend it.
- Purchase a home instead of renting. You'll get your house payments back in the form of equity.
- Pay off anything you owe to avoid paying interest.
- Maximize the interest earned on your savings.
Cut Wasteful Spending
Periodically evaluate your spending and look for sources of savings.
- Invest in more sustainable technology for your home. For instance, if you watch cable, buy only the channels you are watching.
- Improve the insulation of your home to reduce the amount you are spending on electricity and gas.
- Consider buying in bulk.
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Using the right vocabulary
When switching from being an employee to a freelancer, you should pay particular attention to the way you express yourself, the words you choose.
For instance, integrating words such a...
Name your business right
A very important step when starting to work as a freelancer is to actually call your business as what is: a ‘freelance business’.
These kind of words encourage your clients to perceive you as being trustworthy while giving you a better feeling of ownership.
Avoid using ‘ I need..’
Whenever we hear the ‘I need…’ words, we all tend to get a bit irritated by this way of being requested to provide something that always seems of the most utter importance.
On the other hand, there are expressions which could easily replace the ‘ I need…’ while giving the other person the impression that everything is under control.
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Four Steps To Building Wealth
- Don’t Be a Consumerist: keep your expenses as low as possible without sacrificing the quality of life. Spend money on things that yield lasting benefits.
- Have An Emergency Fu...
Benjamin Graham - Warren Buffett’s mentor
“Money isn’t making that much difference in how you and I live. We’re both going down to the cafeteria for lunch and working every day and having a good time. So don’t worry about money, because it won’t make much difference in how you live.”
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To accumulate wealth...
- You need to make it. You need a long-term source of income that's enough to cover your basics.
- You need to save it. You need t...
Making Enough Earned Money
Earned income comes from what you "do for a living."
- Consider what you enjoy as you will be more likely to succeed financially.
- Consider what you're good at and see how you can use those talents to earn a living.
- Consider what will meet your financial expectations.
- Consider how to get there. Determine the education requirements, etc.
Evaluate your income situation annually.
Saving Enough of It
To ensure that you save enough money, your wants should not exceed your budget.
- Track your spending for at least a month.
- Trim the fat. Break down your wants and needs.
- Adjust according to your changing needs.
- Build your cushion. Aim to save around three to six months' worth of living expenses.
- Contribute to a retirement fund and try to get the maximum your employer is matching.
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Where to live
As a freelancer today, you can work from anywhere.
New freelancers like to live in a city where it's easier to network or source new clients. They might like to choose somewhere where their mone...
Personal or Business Banking
Profits from your freelancing career can't simply be added into your personal bank account for the following reasons:
- Mixing personal and business finances can lead to an impossible task at tax season.
- You can be personally liable for lawsuits against your business.
- You'll fail to build business credit.
When you go freelance, open up a business checking account and get a business credit card.
Accounting help
Keeping track of contracts, invoices, overdue payments, and tax can become a burden.
There are several low-cost and free accounting and business management software options to help you stay on top of your finances. During tax season, it may be useful to make use of a professional accountant.
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Five Professional Lessons From Beyoncé
- Involve yourself in decisions big and small: Beyoncé started her own company, Parkwood Entertainment, to have complete control over her brand and to show women they could take matters i...
Beyoncé
After dropping her black empowerment anthem “Formation,” the pop star is preparing to embark for her first world tour since 2014.
The world tour will be yet another addition to the superstar’s already-impressive CV, which includes five solo albums, 20 Grammy Awards and 53 nominations, a net worth of $250 million in 2015, and serving as the founder, president, and CEO of her own company, Parkwood Entertainment.