My 13 Streams of Income: A Journey to Financial Freedom
In today's fast-paced and constantly changing world, diversifying your income sources is more important than ever. You may have heard the saying, "millionaires have seven streams of income," but did you know that it's possible to have even more? I currently have 13 streams of income, and in this article, I'll be sharing my experiences with each one, with the aim of being transparent and, hopefully, inspiring you to explore new avenues for generating income.
To help you understand the relative benefits and drawbacks of each income stream, I'll be rating them on three key factors: effort required to get the first dollar, how passive the income is, and the overall revenue potential. The ratings will range from one star (low effort ★, not passive ★, or little revenue ★) to five stars (high effort ★★★★★, truly passive ★★★★★, or lots of revenue ★★★★★). So let's dive in and explore the different ways I've managed to create a diverse and thriving financial portfolio.
Poshmark / Facebook Marketplace
Poshmark and Facebook Marketplace are online platforms where you can buy and sell gently used clothing or items that you no longer need. I make it a habit to do a quarterly check-in with my closet to see which items I want to sell. This not only helps me declutter my space but also generates some extra income.
I typically batch post products on the same day, taking care to provide clear and attractive photos and descriptions for each item. Once posted, I leave the items online until someone purchases them. The process of shipping sold items is incredibly simple, as Poshmark and Facebook Marketplace provide pre-generated labels. All I have to do is pack the item and send it off!
These platforms have proven to be a low-effort source of income, with minimal time and energy required to get started. While the revenue generated isn't huge, it's a nice bonus for selling items I no longer need or use.
Ratings:
Effort to get first dollar: ★
Passive score: ★★★★
Revenue: ★★
2. Online Surveys (e.g., User Interviews)
Online survey platforms, like User Interviews, help organizations conduct market research with target audiences. These platforms provide an opportunity for individuals to share their opinions and experiences while earning some extra income.
I signed up for User Interviews years ago and have participated in various studies since then. I typically apply for studies that are relevant to my interests, such as beauty, skincare, or finance. The process usually involves a 30-60 minute conversation or survey, for which I am compensated with gift cards. Payments typically average around $100 per hour.
While participating in online surveys is not a completely passive way to earn money, it requires relatively low effort to get started. The revenue generated from this stream of income may not be substantial, but it is a nice bonus for sharing my thoughts and opinions on topics that interest me.
Ratings:
Effort to get first dollar: ★★
Passive score: ★
Revenue: ★★
3. Etsy Store: Digital DIY/Crafting Guides
My Etsy store is a creative outlet where I sell digital DIY and crafting guides, tailored to a specific niche. This endeavor began as a hobby, and I never initially intended to monetize it. However, over time, I realized that my specialized knowledge and passion for the subject could be transformed into a profitable business.
Developing high-quality crafting guides requires a significant investment in time, effort, and skill. It took me months to become proficient in the necessary design techniques, including learning how to use Adobe Illustrator and acquiring a Canva Pro subscription. However, once the initial groundwork was laid, this stream of income became quite passive.
While the effort to earn my first dollar from this venture was substantial, the rewards have been well worth it. My Etsy store now generates a steady stream of revenue, allowing me to share my passion for crafting with others while also earning a profit.
Ratings:
Effort to get first dollar: ★★★★★
Passive score: ★★★★★
Revenue: ★★★★
4. Gumroad: ChatGPT Prompts
As AI becomes increasingly prevalent, many people are still unsure how to effectively utilize prompts for optimal results. Recognizing this knowledge gap, I decided to create and sell ChatGPT prompts via Gumroad, using a "pay what you want" pricing model. My primary goal was not to generate significant revenue, as most items are priced at a minimum of $1, but to help others make the most of their AI tools.
Creating these prompts required extensive research into ChatGPT and a Canva Pro subscription for designing eye-catching thumbnails. Once the initial research and design work was completed, this income stream became highly passive, allowing me to earn money with minimal ongoing effort.
While the revenue generated from my Gumroad store is not substantial, it serves as a helpful supplementary income source and contributes to the overall diversification of my income streams.
Ratings:
Effort to get first dollar: ★★
Passive score: ★★★★★
Revenue: ★
5. Rental Property
Owning a rental property is a classic and reliable method of generating passive income. I purchased a rental property in the US in 2020, and it has been providing me with a positive cash flow each month ever since.
While this is a truly passive source of income once the property is acquired, it does require a significant initial investment, which may not be feasible for everyone. Additionally, finding the right property and navigating the purchasing process can be quite demanding.
Despite the considerable effort needed to secure my first rental income dollar, the long-term benefits have been significant. My rental property now serves as a stable and substantial source of passive revenue, helping to support my overall financial goals.
Ratings:
Effort to get first dollar: ★★★★★
Passive score: ★★★★★
Revenue: ★★★★★
6. Landa Real Estate
Another way I've diversified my income streams is by investing in Landa, a real estate crowdfunding app I discovered a year ago. Landa allows investors to purchase as little as one share of a property for as low as $10, making it an accessible way to test the waters in real estate investment.
Landa pays dividends each month, and your ownership percentage in a property is determined by the number of shares you hold. As a relatively new app, I wouldn't recommend placing all of your trust or investment capital in Landa, but it is a useful tool for diversification. I now earn dividends from this platform each month, which I reinvest to purchase more shares.
While it took significant effort to earn my first dollar through Landa, the platform now provides me with a truly passive source of income. Although the revenue generated is not substantial, it contributes to my overall income diversification strategy.
Ratings:
Effort to get first dollar: ★★★★★
Passive score: ★★★★★
Revenue: ★
7. Fixed Income (Bonds)
Fixed income investments, such as bonds, have become one of my favorite methods for generating passive income. With bond rates soaring across the board, they provide a relatively safe and steady source of income. Bonds involve loaning money to different entities, like corporations or the government, in exchange for regular interest payments. They are generally considered less risky than stocks, as you can rely on the payment after the term is over in most cases.
I'm particularly fond of Treasury Bills, as they offer tax benefits like no state and city tax in NYC, making them an excellent choice for parking some money. Though it takes some effort to get started, bonds offer a truly passive and reliable source of revenue.
Ratings:
Effort to get first dollar: ★★★★
Passive score: ★★★★★
Revenue: ★★★★
8. Dividends from Investments
Dividends are another form of passive income I receive from my investments. They are a portion of a company's profits that are distributed to shareholders as earnings. I automatically reinvest my dividends through Betterment, a robo-advisor I've been using for years to automate my investment strategy.
While I don't rely on dividends as an actual source of income, as I never really see the money, they do contribute to my overall financial growth. Dividends are not a priority when selecting stocks, but they offer a truly passive and modest source of revenue.
Ratings:
Effort to get first dollar: ★★★
Passive score: ★★★★★
Revenue: ★★
9. Rewards from credit card spending
I currently have almost 10 credit cards, and I strategically use each one for specific spending categories to maximize the rewards I receive. This approach has allowed me to travel for free in the past few years, as the rewards points and cashback I've earned have covered the cost of flights, hotels, and other travel expenses. By staying organized and diligent about my spending habits, I've been able to take advantage of the best deals, promotions, and bonuses offered by various credit card companies.
Examples of my favorite cards
💰 All My Favorite Cards
In addition, optimizing credit card spending has indirectly improved my financial health, as I've become more conscious of my expenses and have learned how to manage my credit effectively. By juggling multiple credit cards, I've also developed a deeper understanding of personal finance, which has been invaluable in my journey to financial independence.
It's important to note that this strategy requires careful management to avoid overspending and accumulating debt. However, for those who can responsibly handle their credit and spending, this can be a lucrative and rewarding way to make the most of everyday purchases.
Ratings:
Effort to get first dollar: ★★★
Passive score: ★★★★★
Revenue: ★★★
10. TikTok Creator Fund
I am a member of the TikTok Creator Fund, which pays creators based on the number of views their videos receive. However, the dollar per view is incredibly low, making it one of the lowest sources of income for me. I barely check how much I make from this, and I wouldn't recommend it as a valid strategy for earning money.
Additionally, you need at least 10k subscribers on TikTok to be eligible for the fund, which can take some time depending on your niche.
Ratings:
Effort to get first dollar: ★
Passive score: ★
Revenue: ★
11. UGC Deals
UGC, or User Generated Content, is a type of partnership I have with various brands. These brands often approach me to review their products or create content on a specific topic, which they then post on their accounts. I rarely have to post these videos to my own channel, making it a great opportunity for creators with fewer subscribers.
The revenue from UGC deals can be quite high if you're in the right niche, and it's an excellent way to work with a variety of interesting brands. To keep things professional, I invested in accounting software (HoneyBook) for managing these deals.
Ratings:
Effort to get first dollar: ★★★★
Passive score: ★★
Revenue: ★★★★★
12. YouTube Partner Program
A few weeks ago, I was accepted into the YouTube Partner Program, which has since become a steady source of income for me. It can take a while to qualify for the program, depending on your content and niche, but once you're in, it's a nice passive income stream. The revenue generated from YouTube comes from the ads placed within your videos, making it a more passive income source as your content library grows. I don't create YouTube content solely for the money, so it's been great to have the platform cover some of my daily expenses and support my creative passion.
Ratings:
Effort to get first dollar: ★★★★★ (video editing, camera equipment, etc.)
Passive score: ★★★
Revenue: ★★★
13. Affiliate Links (e.g. Amazon Storefront, LTK Creator App, Brand Affiliate Programs)
Thanks to my social media presence, I earn commissions from products I showcase in my videos or on my blog. I'm part of several affiliate platforms, such as my Amazon Storefront, the LTK Creator App, and various brand affiliate programs. Surprisingly, this has been a solid way to earn extra income as a creator, since many viewers trust and value my recommendations. As a result, they are more likely to purchase items through my affiliate links, generating passive income for me.
I only recommend items that I personally own and love using, which helps maintain my credibility and trust with my audience. If you're not someone who frequently purchases and tests products, this income source might be challenging to pursue, as the authenticity of your recommendations could be questioned.
Ratings:
Effort to get first dollar: ★★★
Passive score: ★★★★★
Revenue: ★★★★
14. My Regular Job
Of course, there's my full-time job, which I pursued after obtaining the necessary education and experience. It takes a lot of specialization to secure a high-paying role, but it serves as my primary source of income. While not as passive as other income streams mentioned here, my regular job provides financial stability and allows me to explore other revenue-generating opportunities with less risk. The skills and knowledge gained from my career also contribute to my success in other passive income ventures, making it an essential component of my overall financial strategy.
Ratings:
Effort to get first dollar: ★★★★★
Passive score: ★
Revenue: ★★★★★