More freedom? Start by designing multiple income streams - Women's Agenda

More freedom? Start by designing multiple income streams

More time, less stress and more money: one way to make the dream a reality is by creating multiple streams of income.

In my experience teaching people how to invest, I’ve found that women generally underestimate what they can achieve, while men tend to overestimate.

This is particularly evident when it comes to the share market, which is the easiest place to start looking to create more income as it is possible to select a strategy to suit any level of capital and time available.

But there are other options available too. The rewards for taking the time now to create more income streams are more choice, more time and ultimately more freedom.

Such streams include income that flows to you from sources outside of your normal wage, including:

1. Investments like shares or property
2. A business venture/s either on or offline
3. Royalties from things such as a book or e-book

To design multiple incomes streams, start by asking whether you’re after passive, active, or both passive and active income streams. Once established, certain investments and royalties can be reasonably passive income requiring little maintenance.

Then determine the amount of capital you have to invest as this will have an influence on the type of investment. There is no point looking at investments that require large capital injections upfront if you don’t have the capital to invest. Remember, you want to increase your cash flow, not constrain it for the next decade. 

Typically property investments can require lump sums up-front whereas you can start investing in the share market with between $5,000 and $10,000. An internet business may be possible with perhaps just a few thousand dollars, depending on what it is.

Then be honest about time, knowledge and experience: do you have the knowledge and experience already, or do you have or need to get it in order to help you to generate income?

And how much time do you have each week to put into building your income stream(s)? Time, or a lack of it, is often the single biggest reason given as to why goals are not achieved.

Remember the time spent planning now will be returned later once the income is flowing.

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