Category: Personal Finance

You’ve probably heard it before that you should have some diversification in your income generation strategy…or more than one income stream.

There’s a reason why many successful people (especially entrepreneurs) do NOT just rely on one source of income and that reason is security.

If one particular income source were to “crap out” for any reason, you have more options to fall back on, more flexibility and more diversification.

It blows my mind how many people just rely on their 9-5 job to get by, without even considering the consequences of putting all your eggs in one basket.

Nothing against 9-5 jobs as I still work one myself…

However, I have multiple streams of income that help supplement this.

Let me ask you a question, what if you lost your job?

What money would help keep you afloat?

How would you pay your bills?

If I can give you one tip, it would be to never rely on one source of income.

In this short post I want to provide you with a few concrete examples of my diversification strategy to maybe get your gears turning and motivation flowing.

Please note that this is what I do and that you will have to find your own income generation methods…but maybe this list will help catapult you in the right direction.

My Current Income Generation Strategies

1.) Solo Ads– If you’ve been reading this blog for anytime now, you may be familiar that I run a solo ad business.  Solo ads have helped provide me an extra source of income for almost 2 years now.

2.) Blogging- Although this blog is still fairly new, it does generate a little bit of income for me and also for my solo ad business. I also expect this blog to organically grow with the more content I produce and exposure it gets, resulting in more income down the road.

3.) Affiliate Marketing- I’ve been doing affiliate marketing for years now using ClickBank, which has been an excellent extra stream of green.  I started out with small niche websites/YouTube, and now have transitioned into other marketing techniques.

4.) My 9-5 Job- My day job is a consistent paycheck with benefits and helps me invest more into other income generation methods.  Jobs can actually be really valuable if you use them as leverage instead of relying solely on them.

5.) Investing in the Stock Market- This is my favorite strategy for building long-term security and independence.  I invest a percentage of my income every single month into the stock market (specifically through Vanguard).  If you start as young as possible and are disciplined enough to ride out the volatility of the stock market, the results (especially because of the power of compound interest) can be amazing!

I also have a few other projects in the works…My main focus being E-commerce (more to come on this) 🙂

However, I highly recommend not putting too much on your plate to start.

It’s important that you focus on only one income source at first until you feel comfortable enough to attempt something else.

What income sources do you currently have?

If you don’t already know, I am a big personal finance geek.

I’ve read dozens of books on the subject for the simple fact that I enjoy the idea of creating more freedom in my life through spending less and saving/investing more.

In fact, I think that personal money management is an extremely important topic that should become a central focus of everyone’s life.

If you’re unhappy with your current job or financial position and feel completely trapped in your situation, here are a few tips you can start implementing that will get you on the right path to creating more “space” in your life.

1.) Avoid & Pay Off Debt

It’s vital that you avoid debt at all costs (some may disagree), but the peace of mind that comes with being debt free is priceless.

If you are currently in debt, do NOT keep digging a deeper hole.  Come up with a plan and be aggressive with paying it off.

Once I paid off the last of my student loans a few years ago, I couldn’t believe how much extra money was freed up for me to save, invest or put towards my Internet businesses.

I challenge you to set a realistic goal of when you can pay off your debt…

Do out the math, create a spreadsheet and stay hyper focused as it will be one off the wisest decisions you ever make.

2.) Limit Your Spending

You wouldn’t believe how much money we spend on unnecessary and irrelevant things in our lives.

Sometimes a few simple tweaks to our monthly habits can mean hundreds of thousands of dollars, if not more, in the long run.

Cut out any unnecessary spending that doesn’t enhance or add value to your life.

This could be eating out at unhealthy restaurants, avoiding happy hour and expensive bar tabs, buying loads of junk on Amazon, purchasing a coffee out every day, excessive driving, buying lunch out everyday at work….etc.

Pinpoint where the bulk of your extra income goes, and see how much better life becomes when you hang on to a certain portion of that hard earned cash.

3.) Indulge In Free Activities

The great thing about being more conscious of your spending, is that is forces you to realize that happiness doesn’t come from the things you buy…

But more from the experiences that don’t revolve around money.

For example, one of my favorite things to do (that doesn’t cost me anything besides a little bit in gas) is taking walks at different trails, hikes or really anything that has to do with the outdoors.

I love this type of activity for a few reasons…

1.) You are connected with nature which creates a natural euphoric feeling.

2.) You spend virtually ZERO money.

3.) It’s great to share the outdoor experience with people you care about.

4.) It’s a healthy way to spend time both physically and mentally.

Now we can reverse this for example to an activity like going out late-night drinking at a bar…

1.) You spend most likely anywhere from $20-100 on food/alcohol (maybe more).

2.) You feel groggy and unmotivated the next day.

3.) A consistent habit of this will make you broke and fat.

4.) You’re more likely to participate in other unhealthy habits, like late-night eating, smoking, buying a round of drinks for everyone etc..

Now I realize everyone’s situation is different but this is just for example purposes to make you think a bit.

I know I’m not normal 🙂 But this is partially why I am never stressed about my financial situation.

4.) Save & Invest The Rest

Now that hopefully you are out of debt or are working aggressively to pay it off, you will want to start saving and investing!

This is when things get exciting and where much momentum starts to kick in (especially when you factor in compound interest).

Now I’m not going to get into detail about the specific investment vehicles you should park your money in, however it’s important that you do your research and find an approach and strategy that’s comfortable for you.

You should aim at the very least to save 20% of your income.

I invest over 40-50% of my money each and every month which is a bit extreme but not when you get used to living a simple lifestyle.

I think the problem here is that people shoot too low and only invest 5-10% of their income…which is better than nothing but not enough if you want to gain financial independence sooner rather than later.

Think of every time you put money away, you are that much closer to freedom in your life.

Look at this as a lifestyle more than anything…you are truly creating the limitless space and opportunity that you so badly deserve.

I want to recommend a few good blogs on personal finance that I suggest you take a look at.

These have also helped me along with some of the books I have read in the past.

Please feel free to check them out and let me know what you think:

(In no particular order)

1.) Mr. Money Mustache

2.) Frugal Woods

3.) jlcollinsnh.com

4.) My Money Wizard

If you enjoy articles on personal finance, money management, building wealth and would like me to post more on the subject…please let me know in the comments section below.