When it comes to building your wealth, the first thing that you might want to consider is how many streams of income you should have. To determine this, you need to deeply reflect and look at your current cash flow—your savings, expenses, and total income each month. You need to understand clearly where you are financially and where you are headed in the future. When generating income streams like selling your art online or investing in ETFs trading, there is not a fool-proof method, to be honest, but you will definitely reap your rewards if you start investing in your future.
If you are just starting to build your wealth, you might want to consider some these passive income ideas to help you set your financial future in a good path.
Design, craft, and sell stuff online: If you are crafty or artsy, you can sell items with your signature design on them online. You can sell shirts, mugs, hats, or even shoes with your artwork in them. You can also create stickers, posters, cards with interesting and fun designs and graphics that you can sell to a wide range of consumers. When capitalizing on your own design, it would be best to do a quick search on what the current market is interested in and expand your creations from there. The interest of the market surges from time to time, so you need to be updated with what attracts people or what is a popular theme or niche. The advantage of design your own items is that you can build a solid following and an arsenal of items that you can eventually scale in the future once you have captured a niche market.
Turn useful items into money-makers by renting them out: What some people do not realize is that they can use their already existing items at home and have people rent them or lease them for a certain fee. Have an extra tent in your garage? Have people rent them for their weekend camping or hiking. Have a lawn mower that is sitting in your yard? Ask your neighbors if they want to rent it for a day to trim their lawn. When renting your items to other people, making sure that you know who is borrowing your stuff to avoid unwanted liability issues.
In addition to earned income from your current job or small business, having multiple lines of income will help you build wealth for your retirement or for investing in a new business. Aside from the abovementioned methods, passive income sources come in other different forms and sizes such as having rental properties, selling your craft online, investing in income or dividend-producing securities such as stocks or ETF trading, or creating an online course. Whichever you choose, one thing that you need to keep in mind is that you will only be successful financially through passive sources of income if you are willing to put in the effort and time. Having multiple streams of income also means balancing your time and energy while making sure that you spend some hours in selecting the best opportunities for you.