They say money doesn't grow on trees, but it does make the world go round. Without it one can lack the main necessities, and luxuries of living a satisfactory or fullfilling life. To keep up with today's growing economy and basic survival one must "earn" and "create" streams of income.
One source of income just isn't enough anymore, creating one or more additional income streams is almost a requirement to living. Before doing this you must ensure your primary income source is stable, then you have the option to create a combination of additional income streams from one or more of the three listed.
NonPassive Income(Active Income):
The most common source and occurs as a direct result of the efforts one puts in by providing service or labor or materially contributing to a business to earn an income. You’re trading your time and energy to earn wages, tips, salaries, or a commission. "You Don’t Work, You Don’t Eat." Active income is vital to maintain living conditions, a stable economy and functional communities. Individuals earn active income to keep up with rental and utility payments,transportation, daycare fees, food, household supplies, and other everyday expenses. Maintaining an active income source promotes a positive livlihood and overall sense of well being.
The strategy of creating a source of income from nonactive participation in a business. Money is earned regularly by an individual that puts in little to no efffort to earn it. This may sound unreal or almost like a dream to some but people who choose to work from home and be there "Own Boss" utilize suitable opportunities and resources to create streams of passive income.
Passive Income Ventures are generally discovered and created by single parents, retirees, parents of toddlers that would rather bypass daycare fees, persons tired of working the 9-5 rut or long hours, and anyone that wants to generate an extra source of income to supplement their normal wages or salary. The initial strategy of generating a passive income stream is; making your personal assests and capital work for you, also utilizing the talents or skills you possess that others would compensate for.
Residual Income(Also Passive Income):
Residual Income is when you continue to earn profits after the hard work is done. Most often conversion to a residual income isn't free or easy, it requires an inital investment of money, time, or both. It is very possible to achieve with hardwork, dedication, effort, and a profit yielding plan. The key strategy is to invest in assets, products, or services that people will continue to pay for on a regular basis. Main examples are:
-Real Estate: Rent out personal or commercial space and collect monthly rental checks.
-Royalties: Compose intellectual property(songs, books, songs, inventions) protected by copyright, patent,etc. to continuosly receive profit from sales or distribution, and compensation for third party usage.
-Subscription Services: Provide a necessary or in demand service(consultant, agent, multimedia content) that requires ongoing payments.
-Investing: The possibilities of investing are endless, with high potential to gain a profit or a substain a loss. Investment options include; stocks and bonds, peer-to-peer lending, mutual funds, real estate, annuities, precious metals, and many more.
With Today's increasing cost of living, social demands, and personal desires, creating multiple streams of income is very necessary and almost vital to leading your desired lifestyle. Successfully acquiring and maintaining multiple sources of income, will give a heightened sense of financial security, personal freedom, and may decrease any troubles you may face if an unexpected situation occurs or one of your sources flatline.