We all have ways in which we view things, see things and enjoy them and that is how it is in creating an income in your 20s which can also be tagged as hustling. To some, it is very easy, and to others, it is quite difficult. Many think they’re too young while some ain’t even willing to take the risk. However, eliminating such a mindset can only help build a better and more successful you.
Here, we have a guideline on what multiple streams of income seem like, guidelines for creating multiple streams, and how to keep developing in those streams.
How To Create Multiple Streams Of Income In Your 20s
Although the occurrence of failing cannot be overshadowed, making good use of that moment to fix oneself and reconstruct is what helps to succeed.
John C. Maxwell, the author of Failing forward wrote in his book the difference between average people and achieving people is their perception of and response to failure.
Having multiple streams of income and maintaining these streams require so many tasks, skills, and competency. However, having a clear intention with a high level of confidence and certainty about what you’re planning is extremely vital. Your thoughts on money determine your achievements and how capable you are of conserving your finances.
Let’s check through the following guidelines:
1. Making the right decisions
This is knowing what is essential to you, what interests you, and what you are profitable at. For instance, a belief I grew up with: “Success only comes from what is productive”.
2. Draw your plan
Succeeding in the creation of multiple streams of income needs a proper plan. One can only venture into what has a plan and a properly drawn plan to avoid excess or constant failure. There are so many ideologies out there on how to make it quick but in truth, such ideologies ain’t real nor do they last long.
3. Creativity and ideas
Be creative enough with your plan and activities. Work on ideas that are unlike the rest, do the uncommon, and get people more attracted to your streams.
For instance, having a rebranded, unusual way of doing your own thing makes it unique from those who are even in the same field as you. Be a genius at what you do.
4. Being able to invest in yourself
This comes in so many forms such as: being able to devote yourself to your plans, and having a strong and firm self-trust that you have the necessary skills and are qualified enough to do things even more than anyone can ever think of.
5. Ability to get your mind focused
This deals with your level of concentration and how well you pay attention to things. Being focused can be seen as a skill that can be built and refined. However, a mind that is focused is aimed at efficiency and effectiveness to succeed.
6. Get moving
After you’re convinced and confident you’re good to go, the earlier you get moving, the better. Being frequent in what you do helps to get things done with ease.
“Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit at home and think about it. Go out and get busy” – Dale Carnegie
7. Ability to remain focused
Being stable and constant keeps the train moving. Most times, we make the mistake of categorizing this as multi-tasking but it’s not, it’s the ability to continue to dive toward the set goal and desire by controlling your attention to the task alone. Avoid getting distracted.
If you’re craving a high level of income in your 20s, you must be ready to give all it takes, including special attention to your perspective on streams of income. Not just being glued to financial independence but a willingness that aims at affluence; have a self-trust that you’re capable and as well worthy of it.
How Many Streams of Income Should You Have?
There are two types of income and these are universal in their subdivisions. In view of creating multiple streams of income, let’s go through the two types of incomes;
- Active income as the name implies is that in which you are actively and directly involved, then get paid for your performance and this includes incomes such as wages, salaries, and business profits.
- Inactive income as it implies is that in which you get involved indirectly, with less work or no involvement at all such as limited partnerships, renting out of properties, or lending out money.
Also, the above categories are subdivided into seven streams of income:
- Earned Income: The job you do; a primary source, giving your time in exchange for money. This means your main job.
- Business or Profit Income: Your gain from buying and selling or provision of goods and services. This can also mean side hustles.
- Loan Income: An income generated from loaning out your money. This is also known as interest income
- Dividend Income: A reward you get as a shareholder in a particular company without you being a staff of such a company.
- Rental Income: An income generated from renting or borrowing out your properties such as an apartment rented for monthly or annual payments or lease.
- Capital Gains Income: When you sell out your capital belongings, the money that comes in is the capital gains income such as shares, investments, personal household items, and lands.
- Royalty Income: An income that you generate after taking away the initial expenses of the property you gave out for someone else’s use.
However, there is no direct answer to these depending on your strength, and how available you can be to achieving this set goal but there is a common ideology taking a look at millionaires, statistics show that 29% of millionaires have more than 5 streams combined together and some say they go the extra mile using even more than the 7 known streams of income, this, on one hand, might be true but on the other for one in the early stage such as in your 20s.
Note that you must not rush into combining all the streams. You will have to be diligent and then learn how to combine and manage as many streams as you want.
As it goes, be careful not to have correlated streams of income, this means having a rationalized or diversified stream of business to avoid the occurrence of a general strike.
Why Are Multiple Streams of Income Important?
You can have income from several channels. The chain of multiple streams of income is up to the mark. It sure gives assurance of having one to fall back on when one fails and numerous sources that cash flows.
Let’s analyze more reasons and the effects of having multiple streams of income as we go through the table below:
|1.||Aids Earning more||The initial reason for having multiple streams of income is to earn more money and this helps to attain a set financial standard, live largely, and attend to all needs faster.|
|2.||Financial safety||This helps to have what to fall back on when there is a fall or when one of the businesses fails. It lessens the effect of destitution and misery. It helps to get protected when one loses a job as well.|
|3||Financial stability||It helps to forget worrying about how to live. Having sufficient and adequate money to cover needs, sustenance, and urgent situations.|
|4||Financial Independence||It helps to have strong confidence in being able to take care of oneself and others’ needs for a lifetime, having greater control over one’s life, and the privilege to go after your own desires.|
|5||The chance to have a less working plan||When there are streams of income combined, it reduces the stress of having to work too much.|
|6||Get to live your dream life||Having to live a life of comfort with zero stress and zero worries.|
Below is a list of streams to help make income in your 20s just like I have a chain of 2 or more:
1. Creating a peer group fund loans
2. Being a freelancer
3. Build yourself to become an influencer
4. Create an online store
5. Learn to blog
6. Renting out your car and other properties
7. Start a laundry service
8. Fund a real estate agency
Finally, you can now take your mind off worries and get started today. Forget about failing and be confident in yourself that you can achieve your set goals and dreams to have a comfortable life.
There’s no difficulty in combining multiple streams of income in your 20s, in fact, it’s one of the wisest things to do. Get yourself equipped with the right skills, and the right mindset and if you’re equipped, just draw out your plan and you’re set to go.