Generating multiple streams of income can have a major impact on your finances. Even an extra income of $500 each month could go a long way to paying down debt or increasing your investments. We often hear about the importance of diversifying our investments, but diversifying our income streams is just as important, particularly in difficult economic times. Let me show you just how valuable even an extra $500 per month can be. Then I’ll list the factors to consider in deciding how to generate extra income, followed by 10 multiple income stream ideas.
The value of a second income
Yesterday I was discussing with a friend the income I earn online, which now is about $1,500 per month. He asked why I get so excited about this income given that it is a lot less than I make from my job. So here are a couple of different ways to look at an extra $1,500 per month:
- Savings account: To earn $1,500 a month ($18,000 per year) in a savings account at 4%, you would need to save $450,000!
- Investment account: To earn $18,000 from investments at 10%, you would need to invest $180,000.
- Employment: For many, to get $18,000 in raises could take several years of dedicated service to your employer.
- Financial Freedom: Extra income of $1,500 per month could cover car payments, help pay down credit card debt, or cover some or even all of a mortgage payment.
The point is that even relatively small amounts of extra income can go a long way.
What makes for a great source of extra income
We could all go out and get a second job at Home Depot or Starbucks to earn some extra income. As you might imagine, however, that’s not what I have in mind. When assessing how you can generate multiple income streams, consider these factors:
Flexible: The ideal source of extra income will allow you to call the shots when it comes to your time. Particularly if you have a full time job, the last thing you want is being tied down to working a set number of hours each week at a second job.
Scalable: Look for income sources that have at least the possibility of generating substantial amounts of income.
Sustainable: The ideal extra income source will continue to generate cash even when you’re not working at it. The idea is to build something that can eventually function without you.
Enjoyable: Generating additional sources of income is a lot of work, so you might as well enjoy what you’re doing.
Inexpensive: I don’t like income generating ideas that require massive investment.
10 Extra Income Ideas
So now we get to some ideas on how to go about generating extra income. You want to choose something that fits your interests and personality. You may have certain skills, training and education that will dictate what’s best for you. So while this is not one size fits all, here are 10 extra income ideas to consider:
- Taking Paid Surveys at Home: I was skeptical, at first, until my 17 year old son starting making money at home taking paid surveys. Companies desperately want your opinion, and they are willing to pay for it. The trick, of course, is knowing where to find the paid surveys that pay the best. One of the most popular and legitimate survey sites is CashCrate. Not only can you make money taking surveys, but you can also make money by referring friends and family to CashCrate.
- Ebay Store: It’s now easier than ever to run an online Ebay store. You can of course acquire products to resell on Ebay. But you can also create an online store to market products that others are selling on Ebay and share in the commissions generated by the sales.
- Start an Online Business: Making money online requires very little cash investment and can be done on your schedule from home. There are two approaches to getting started. First, you can build a blog, muck like I did beginning back in 2007. Setting up a blog takes just minutes and costs very little. You can learn more in my tutorial on how to start a blog. Second, you can set up a website. It’s much easier than you think. If this is the approach you want to take, the starting point is SiteSell (SBI! 3.0). Not only is setting up a website a snap with SiteSell, but they walk you through how to get traffic to your site and how to make money online.
- Realtor: This may seem like a crazy time to start selling real estate, but in a slow market a lot of the competition runs away. You’ll need an initial investment to obtain your real estate license, but over the long term have the potential to make substantial income.
- Website Design: With the continued growth of the Internet, website design has become a growing industry. Unless you already have the know-how, you’ll need to spend some time learning the technology. But there are plenty of online resources available, and the best in the business can earn a great income.
- Graphic Artist: There are a lot of ways to generate money through graphics. Just the logo business alone could keep you busy if you have the artistic skills necessary to develop cool graphics.
- Virtual Assistant: Virtual assistances today can do just about anything for you that doesn’t require their physical presence. Many virtual assistants from places like India are working full time for people in the U.S. The best VAs can earn $30 to $50 per hour. The starting place if you are interested is Elance.
- Freelance writer: If you have a knack for writing, you can earn great money writing for others. Not sure how to start? Contact bloggers who are always looking for great writing. As blogs grow, they can afford to pay freelancers good money for quality articles. Websites looking to build links also hire freelancers to write guest posts to be published on blogs and websites. And if you want help finding writing jobs, click here.
- Home business: The ideas and potential for a home business are limitless. I know folks who run creative memories stores, operate a video business, or sound studio from their home. One of the great benefits about running a home business is that it greatly reduces your initial investment.
- Sell a product: I have good friends who have designed a children’s game and is in the process of producing and marketing it. It’s a lot of work, but they are passionate about the work, and the potential payoff is huge.
Generating income (along with minimizing expenses) is the foundation of smarter money management. While earning extra income does take work, its payoff can be huge. If you are interested to taking the leap, here are some additional resources to consider:
- Easy Money: Good and Not So Great Ways to Get Money Fast at PT Money
- 40+ Alternative Income Ideas and Resources at Moolanomy
- 40 Ways to Make Money on the Internet at Dumb Little Man
- Ten Ways to Translate Your Passion Into Additional Income at The Simple Dollar
- 20+ Free Passive Income Resources at Life Optimizer
Rob Berger
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Published or updated March 22, 2013.
{ 48 comments… read them below or add one }
I look forward to your posts. I’m new to blogging and have way too much to learn. I wish I had a personal mentor to teach me everything. It really can seem overwhelming at times. Thanks so much for all your wonderful insight.
May I ask how you are generating $1500 a month? that would be enough for paying off my car in 1 year, then be able to split the rest between extra on the mortgage and investments!!!
Oh please do tell.
Joe, I’ll work on a post that describes how I make that money. By the way, it’s now up to about $2,500 per month. But the short answer is traffic, traffic, traffic. If you get traffic to a site, you can make money through adsense and affiliate sales relevant to the topic of the site.
Hi, can you elaborate a bit further?
Thanks!
I appreciate the comparison between various ways to earn the same money. I’m sure that we would all like to have an extra $450,000 to plonk into a savings account and earn interest, but in the meantime I’ll keep looking for nifty new sources of income. Thanks for the post!
Hi DR,
I love your site and was wondering if you had completed the post on how you make $2500 monthly yet? I desperately would liket to create a passive income stream, but have not been able to decide which path to take, so I would really like to see what works for you. Besides blogging?
Thanks for your help and input. I also liked your posts on the 4HWW. I also read the book and enjoyed it, but have yet to try anything. Once I decide what might work best for me though, I’m sure I will.
Thanks again.
Nice list! I hope you can teach your readers like me regarding multiple streams of income.
Great ideas here, and thanks for the link! I’m definitely interested in learning about using an Ebay store, although I’ve heard they are not as effective as they used to be. One interesting problem that arises though is with online work, that is, work performed via the internet. If one does not reside in one’s home country while doing it it might be considered illegal (so check on all those tax implications).
Nice article. I have been blogging on a few sites that are friendly to my business and have gotten several customers through them. You might not get results right away from blogging or selling online, but if you stay persistent, you’ll start getting results like I have.
Jeffrey, persistence is the key. There were many times early on that I wanted to give up, and I almost did. Today, I’m so thankful I stuck with it.
Learn how to become a savvy and successful Ebay seller from Lynn Dralle. She has many tips and tricks to share that are easy to understand and can help anyone save time and money when selling on Ebay! This video will teach you what kind of items will be sure to have a high bid and what items to keep an eye out for when garage selling, thrifting and antiquing!
Another resource-rich article from you. Thank you. Have recently started blogging as well, so traffic is slowly picking up to my site. I’ve enjoyed many of your articles, so I’ve added a link on my blogroll to your site, so that they can be shared with my readers as well. Head on over, and feel free to visit the abovementioned url
Keep up the good work, and I’ll continue to visit and enjoy your articles and info.
This is all very interesting indeed. I totally agree with a few of the points here — especially selling on eBay. I’d like to take a second to promote my new website that also share ideas on making extra money on the side (especially focusing on products they can resell on eBay).
No gimmicks. No eBooks to Buy. Just free information. Thanks for this great article and I hope my new website will also provide useful information to you as well.
hey, help me out if you can. I did some research sometime back on generating income from the internet and came across a program that reviewers found very accessible and legit. The program’s name was in German and it totally escapes me, it started with an N, like, Nietsche or something that looked similar to that word. The creator, his package include how-to videos. Do you know what i am talking about?
wow! cant’ believe i’m learning alot on this page…i’ll be it, one day!
I like your attitude – a CAN DO one! Way to go.
And yes this article is awesome and very helpful.
Hope to see an updated version for 2010 as I am sure things have changed since this was written in 2008.
The secret of success on your Internet entrepreneurs relies on two important things: Decide what you want to do online and research all its possible aspects and you will be on your way to success. Do not let the congestion of the market, the scams surrounding the industry, and innocence defer your way towards success.
Great insight review, thanks for sharing, it would give alot of inspiration to those who are keen to improve internet marketing and earn side income
Working from home can get boring and tedious, so have to have the right attitude in order for any home based work or business to succeed.
One of the easiest way to earn online is to sell people your services. For instance you are willing to design a new graphic ad for $5. This way you can put your talents at work and generate income.
I think it’s funny how 1500 is the amount of extra income you mention because that’s what I’m shooting for! If I can make that much more each month to supplement my regular income, I will have almost all of my school debt payed off in one year! I’m really motivated. I use Mechanical Turk with Amazon to perform menial task and get a few extra bucks. I also use Varolo which is a fairly new idea. I really think it has potential. If you don’t mind me promoting it, here it goes.
Varolo is an advertising campaign that allows major corporations (like Coca Cola, Lysol, and others) to reach their target audiences with a high return on investment. Major corporations are desperately trying to find new ways to advertise to people as the newspaper continues to decline in demand and in an age of DVR. Varolo is the newest opportunity that actually pays you, the one being advertised to, to watch their advertisements. You can join the campaign and earn a little extra spending money by viewing and rating commercials and even trailers for major motion pictures. While the trick is to devote 5 to 10 minutes of each day rating what you see, you should also be motivated to invite others along through Facebook, Twitter and other social media so that you can increase what you profit each week.
Depending on how hard you work to recruit others, you can earn a little or a lot. But you must put in the effort before you can reap the reward. Use the following link to watch a short introductory video and sign up. You will be given an option to either click “User” or “Advertiser” when you follow the link below. Most people will choose “User”. Good luck!
http://www.varolo.com.
Varolo is not up and running as yet – it says Version 2 is coming.
I have been using,”multiple streams of income,” as my mantra during this rough patch. Being an interior designer easily translates into designing other things as well. I have been designing jewelry that is customized in price and style for different stores. I also opened an Etsy shop for my jewelry and for vintage items that I find in my treasure hunting for clients.I am bringing in an extra $1500-$3000 a month, and I am having fun! My first passion is always going to be interior design, and I am thankful for the clients I have!
When every you hook up your computer on the web you have just went global on the Internet. Keep in mind you now have the chance to meet and sale to anybody in the world. There are so many forums and website that are connect to the global world just logon the Internet you now have a chance for extra income
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Great Article. If you think about it, it doesn’t make sense why every person in the WORLD doesn’t have multiple streams of income. Why is it the norm to have 1 source of income to pay for 15 expenses (mortgage, student loans, rent, food, phone, utilities, car note and etc). You have to do something different in order get a head and have some financial freedom or else you are going to stay in your situation at your J.O.B. (Just over broke). I applaud those who have found this site because they are taking the first step to change their life because like I always say, change your mind and your money will follow.
This is a buzzword I heard about through a few career coaches. Slowly more awareness is spreading that we can escape the rat race and find alternative ways of working, and indeed, the days of having to choose one particular career path are becoming outdated. The recession is forcing us to think of more imaginative ways to make a living and I am determined to use every skill and talent I have to start generating multiple income streams. Before I was racking my brain for YEARS because I just couldn’t choose one career path! I am only just beginning on a small scale and am not making any real money as yet, but this year I will dig out the toolboxes I’m not currently using and set up various things that will hopefully bring in the pounds. Thumbs up to multiple income streams.
I am skeptical of paying $34 on the website you recomended to get paid for taking surveys? Can you really earn extra money and how do they pay you?
if you have to pay for doing surveys is probablly a scam…
Mihai, you should never pay for doing surveys. The service above pulls together for you all of the survey sites and options. But you can of course spend the time to do your own research.
I would love to read a post on how your friends you mentioned have gone about getting their childrens game. Although it’s not in my field of expertise, I’m currently looking for ways to develope a baby product as well. Just to receive some info/tips in their process would be helpful.
Thanks
Thanks for this awesome post and the various links to find out more. eBay looks interesting at this point.
There is no security with J.O.B. Instead of living in constant fear that we can get retrenched anytime, we should pro-actively go out there to work for our multiple streams of income.
It certainly makes good financial sense to diversify our income base.
Hi DR I really love what I read about making extra money. I am looking to have a sum of $4000 canadian monthly @ 10 hours daily. But I need advise and guidence towards this path. I would highly appreciate your guidence so I can be successfull. Thank you.
With the way the economy is going Multiple streams of income is the way to go if you know what your doing. I luved your insight and your so right there are so many ways. The best way that i know of is to brand oneself cause people dont join business they join YOU. Like , trust is key ingredient along with building your list after all the money is in the list or should i say the people in the list. The best part with the system im presently using is i still get paid with affiliate even if they don’t join my primary biz…
thankyou and many blessings Doug..u ROCK!
These are great tips, I’ve recently gotten into eBay selling myself (and with great success!). It is amazing how much you can resell an item for if you just fix it up. For instance, you can get an iPhone with a broken screen for a fraction of the price on Craigslist, change the screen for $50-100 and sell it and still make money of it!
I’ve used this new tool called Statricks, where you get price trends and fair market values for almost all used goods so you’ll know what the going price is for an item. I find this very useful and reassuring, as I’ll know I’m not overpaying or underselling my stuff.
I would recommend everybody to sign up for it and start flipping items!
Hanna, thank you so much for sharing. I find it extremely time consuming to do all the market research on used stuff! Sounds like Statricks will do the job for me:) I just signed up myself:)
Ingrid, how’s your experience so far after signing up? Thank you!
Good ideas. I would also add, that if you own your own home, you could rent it out for more than you pay rent in a smaller place. It’s an instant way to start earning hundreds more a month without doing much. You can even get a property manager to do the work for you.
Hi,
Can you further explain the survey site. Can you really earn extra money taking surveys online from the site you posted. I believe its $17 to sign in. How do they pay you?
Thanks
Came to the U.S. as an immigrant in 1968 from a poor Asian country with only $100 in my pocket. Took advantange of 401-K savings plan by contributing 10% of my pay. My employer matched the first 6% savings (50 cents/dollar saved). Did not know anything about investment so 100% of 401-k money was invested in index 500. No other savings except 401-K. Retired in 1999 at 55 years old with about $1.2 million in 401-K and $450,000 lump sum pension which I rolled over to IRA. I invested this money in bonds and only buy equities (small cap index) whenever value drop to at least 50% of its high. I made a lot of money by investing in small cap index (ticker, IWM). Because of the risk involved, I don’t buy individual stock.
Rod
I do not agree with blogging part of it. It takes a lot of time and efforts to earn through blogging. It includes writing, website designing, then seo. All in all, blogging is a tough preposition.
looking for some ideals for muti stream income weather im presence or not presence(looking for the income to work on its on and not having 2 be there a lot to run it)
Thanks!
This is Great! Learn from that article…
Hey the advise in this article is great. has anyone tried the external links he provided? Especially, the paid survey one. I’m interested but I’m wondering if it is the usual custom to have to pay to become a member…. Anyone know? If you do and you reply my comment, I’ll see it. I’lll be checking back for it. thanks!
The surveys from home, you added a link for “everything we needed to know” it sent me to a site where I had to pay them $35 or $45 to get started. It doesn’t say anything about how, until you pay them. You sent us too the site BUT, have you checked it? Is it safe? Will they take my $, & I get nothing? If you say its OK, then fine, but usually these things are bad news. I fell into one when I was young. Proof reading at home. They sent you a book on how to do it, & then a “LIST” of all the company’s that hired at home proof readers. Well, they sent me the book, which was fine. But, the list they sent me had nothing but company’s that only hired people with long time prior experience proof reading. So, it was useless to me. ;(
Several of us have asked about the “Surveys at home” site…could you respond, please? Thanks so much…love your website.
I’m also wondering about the surveys. I used to do surveys – only a few dollars for each – but I didn’t have to pay anyone to take them. Sounds like a scam.
Michelle, you should never pay to take surveys. There are some informational resources, like the one I site to, that pull together all of the sites where you can earn money taking surveys. And they charge for this information. Of course, you can always spend the time to do your own research if you want.