- Personal Finance
Increase Your Wealth:How to Create Multiple Streams of Income
Cash: So Much of it out there: So Little in Your Pocket
Cutting back is not the only answer: Creating Multiple Streams of Income
Most of us would like to have more money. It is our nature to want to see ourselves as comfortable and without the worry of the monthly paycheck lasting only three weeks or less.
A basic method of increasing wealth includes reducing outgoing costs, this is all fine, we know that going without a Starbucks coffee in the morning can save us thousands. Making a packed lunch for work will save on the Subway sandwiches oe even a Quizzno's or Taco Bell lunch.But what when you have cut back as far as you can? A further possibility is to increase the number of hours you or your money works.
Make TIME work for you
Whether we are hourly paid employees or salaried, we all sell OUR time.
Our employers know the value of our time, that is what they pay us for. In the process of industrialization we workers have forgotten how much our time is really worth. I am suggesting we re-examine its value to us. We can sell the same time multiple times. We can sell it to our employers and to ourselves. We can, if we wish, keep the day job and using multiple streams of income we can use modern technologies and old methods such as stocks and bonds to increase the number of ways our own personal time and money work for us.
Creating more TIME
The first step is to create more time. We are physically limited to how much time we can work. As individuals we can work about ten hours per day. If we earn $100 per day we can barely make ends meet. So if we look to create more income we need to increase the value of those ten hours we already work and utilize the other fourteen hours we cannot use.
We can use technologies such as hubpages to promote our writings, better still Hubpages provides us with the ability to sell advertising space. In selling that space through Google AdSense and Amazon or Ebay we work 24 hours per day. Any income we gain outside our normal working hours is increasing the time we work without any other cost apart from the amount of time we wrte our hbss. If one writes about something one regards as fun then why not be paid for that, and one increases the knowledge of the world in general.
When investing in more traditional forms, bank accounts, stocks and bonds, one should consider the same terms and conditions.
Ask How do the investments increase my earning power?
Keep cash in checking accounts to a minimum. These accounts pay very little interest even in good times. Move as much cash as you can spare into savings accounts, but be aware of transfer fees which hit you hard if you transfer money back to a checking account to cover you over a period of low funds.
When you have found a good balance of cash in your savings and checking accounts look to Certificates of Deposit (CD's) for longer term savings and secure FDIC guarantees. At the moment I am reluctant to go beyond 6 months on any CD, the rates are so low beyond six months and there is a chance that cash locked into a low paying rate will not keep up with inflation if it is there too long. Also the rates of interest could begin to rise and you don't need to watch rates rise as you wait a year or more for your CD to mature or pay the fees to the bank for cashing out early.
Only when you have a secure footing in savings should you move on to looking for stocks and bonds. Neither of these guarantees a return, but a good dividend paying stock or interest yielding vond again supports the ideal of increasing your income by increasing the amount of time your money works for you.
This Capsule was added in June 2014.
Just over one year ago I began selling books online via amazon.com.
I began with just seventeen books. These books were a mixture of old textbooks and books from my reading bookshelves which I no longer wanted. I began selling the books as merchant fulfilled items but soon decided to move over to selling with Fulfillment by Amazon. (FBA)
With FBA I create a shipment of books online, pack the books in a box, usually 30-40 at a time and send them to an amazon fulfillment center. There they are added to my inventory on the amazon.com website and when sold amazon takes a small fee and packs, ships and provides all my customer service needs.
I am planning to write a more expansive article in the near future.
But as my business stands today, I have over 750 books in inventory with amazon, have sold over 300 books and have made a net profit every month since November 2013.
All this from the sale of those original seventeen books, reinvesting $80 per month in new stock, purchased from libraries, thrift stores and second-hand bookstores.
Creating Passive Income
With the growth of the World Wide Web, there are growing opportunities to create many forms of passive income.
You can create webpages such as Blogs. Blogs are pages which are updated regularly. You should choose a topic which interests you, then using accounts with sites such as Blogger.com or wordpress you begin writing a page as often as you like. You may also receive comments from your readers. Your opportunity for passive income comes from monetization of your blog through companies such as Amazon Affiliates and Google AdSense. The more popular the blog the greater the chance of earning high paying advertising.
You may also write hubs on HubPages, this too brings in advertising from Pay per Click (PPC) and Pay per Impression (CPM) advertising. PPC pays you as a publisher when a person clicks on an ad, CPM pays you a little less but the advertiser is charged if the ad shows on your page, no need to click, generally PPC pays more to you as a publisher than CPM.
You may also publish articles for cash on sites such as Yahoo, or you can publish lists on sites like List My 5 which pays you on a PPC basis but not linked as yet to Google AdSense accounts.
Finally you can design your own clothing, jewelry and household goods on sites such as zazzle.com and cafepress.com. These stores take your designs and produce items to order and pay you a mark-up or commission on each sale. They do require lots of planning creating stock for the store,but returns can vary from a minimum of 25 cents for a $2.00 fridge magnet, to any amount you dare to ask. For instance a case for an i-Phone case on zazzle.com returns a minimum commission of $4.00.
Links which may be of interest:
- Bretsuki's Books @ Amazon.com:
Online shopping from a great selection at Bretsuki's Books Store.
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