Multiple income streams simply mean more than one income stream or earning simultaneously from more than one thing. In today’s internet and awareness, everyone knows that multiple income streams are significant for getting financial freedom in life and getting financial independence at an early age is different.
So in this article, we will discuss how you can make multiple income streams in your 20s within five years to achieve financial freedom. So a lot to know, a lot to discuss and without wasting any time, let us begin.
Guide to make multiple income streams
Follow the below-mentioned steps properly to achieve financial freedom at an early age. So the steps to make multiple income streams in 5 years are:
#1 Create your first income source in 2 years
First of all, you need to generate a reliable income source in the first two years. You may think that 2 years is too much time, but it is not, especially when you are making your first income source. For making an income source, you need to expertise skills of your choice and use them to add value to the life of people.
Money is simply the end product of value addition. You might think that you do not need to spend two years creating the first income source, but for me, an income source means the source of income that put you in the Top 5% wealthiest persons in the world. If you are already there, then well and good, but if you are not there, you should try to expertise your skill first.
In most cases, your first income will be an active source of income and it is well and sound because this source will help you to earn passively in future.
#2 Hire a content writer ( Your second income source)
Look, you are making a good amount of money from your first income source. Now you simply need to start your website and hire a content writer for writing content in it. There are a lot of ways of making income from a website like advertisements, sponsors etc.
I recommend you start a website because it is like passive income where you simply need to pay a content writer for writing content for you, and you can earn from that good quality content.
This source of income is also reliable and could be best as your second source of income.
#3 Start investing (Third income source)
Investing is one of the best ways of becoming financially free. So start investing simultaneously with your website. As a beginner, you can start with index funds and, with time, focus on gaining financial knowledge and start investing in other stock market assets like equity, mutual funds, futures and options etc.
Remember that patience and compounding are two of the main requirements of earning profits from the stock market. So be patient, especially as a beginner and it will be best for you.
#4 Invest in real estate ( Fourth income source)
You will be earning a significant amount of money from your website after 1 year. So now you should use that funds in real estate. Real estate could be the most reliable asset for most of you because we know that land value will definitely increase in the long term.
Since this is your fourth income source, you can quickly pay experts for finding the best deals in real estate.
In general, you need either the money or time to earn money from any field. Since you do not have money initially, that is why you took two years to make the first income source. Still, now you have significant capital and can easily earn from real estate in comparatively significantly little time.
#5 Buy a profitable business ( The fifth source of income)
At this point, you have too many funds but are still too far from the mark of financial freedom. To achieve that mark rapidly, you can buy a profitable business, especially passive companies like vending, etc. You do not need to dedicate your time to managing those businesses and focus on other income streams.
#6 Make passive income source of your choice
There are a lot of passive income sources and you can focus on any of them. You can start hiring people for starting a car wash business or any other passive income source of your choice. At this time, you can be partially financially free, and after making 2-3 more income sources, you could be ultimately economically free.
Creating your first income source will be the most challenging task in your journey of achieving financial freedom.
#7 Leave your active income source
Now, at last, leave your active income source if you do not like spending time in it because you have achieved financial freedom in life. Now you do not have to think of ways of earning money, and you can focus on different things in your life like travelling, family and relationships etc.
Now you can sleep with pride that you have achieved financial freedom in life, which is the best feeling ever.
At last, I want to say that you will face a lot of difficulties in your path. Initially, you will be highly motivated, but afterward, you will meet many problems and drop your motivation level rapidly. So be prepared for it.
Finally, be humble and respectful towards others after achieving financial freedom because ambition can destroy life and good people always treat others humbly.
With this note, let us end this article, and as always, God Bless You All.
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Frequently Asked Questions
Why is investing a better source of passive income?
You can earn by just investing in good companies; that is why it is the best source of passive income.
Why is making the first income source difficult?
Making the first income source is difficult because it requires patience and hard work to expertise a skill and skill is necessary to make the first income source.
How I can earn from a website?
You can earn from advertisement and sponsors from your website.