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How to Build Multiple Income Streams in Your Twenties 🤑

19th March 2019

The average millionaire has 7 income streams.

You’ve probably heard that quote before. It does sound pretty cool to have 7 income streams, but there is a real reason why millionaires have so many income sources: to diversify. If one disappears, you know you can rely on others to survive. If there’s a market crash, you know you can rely on your other income to survive. This is something most people don’t have. Most people have a job, and when there’s no job, they’re completely broke. Not a great situation to be in. 🙄

The best kind of income streams are the passive ones. The ones that generate money without you being in the middle. It’s also important to note that the 7 income streams of the average millionaire does not mean 7 different types, it means 7 different sources, e.g. 4 houses, 1 business and investments from dividends and interest.

The great thing is that if you’re in your twenties, now is the time to start building those income streams so you can enjoy them when you really do need the money. 💸 Here are 6 different types of income streams you can start working on now 😎

 

1. Freelance Side Hustle

Your side hustle may not be making much at the moment, but in a few years, the experience and skills you’ve built will allow you to create an online business or get higher value clients. Look at what Benjamin did: he started working as a freelancer for 2 years, learnt how to interact with clients and built the right skills. He then started an online business and hired employees to do his work! Now he spends 1-2 hours per day managing his business, and he’s 24! 

You can do this too: start off by completing the 3 step method to figure out which side hustle/freelance gig would fit you best. Look for clients on sites such as Upwork and Freelancer and learn how to be professional. The key here is patience – in order for this to be a proper income source in the future, you do need to keep working at it for several years.

I have two freelance side hustles which I plan on producing an income in the future; my digital marketing freelance work and this blog. I don’t make much as a freelancer, and I don’t make anything with this blog, but the plan is to turn it into an income further on. 💁‍♀️

 

2. Investment Capital Gains

In your twenties, your investments won’t be generating much. But if you follow the 15% rule and keep investing every single month, your future self will enjoy a pretty snazzy income stream. As your investments use the power of compound interest, your nest egg grows. And suddenly investing £100 per month in your twenties generates £247,154.26 in your 60s. 😱

The thing about this income stream is that this is money you only receive once you sell your investments. For this reason, the stream is more useful if you’re going to reach financial independence or are retiring.

‘Retirement? I have plenty of time to plan for that!’

Nope. Nope you don’t. Start now and you’ll have even more in the future 😉. Oh and it only takes £100 per month.

multiple income streams
retirement is pretty great when you have the money for it

3. Investment Dividends

For those who feel a bit more confident picking stocks and investing in specific companies, receiving dividends is another great possible income source. Put simply, if you invest in companies such as Coca Cola, they will give out money to their shareholders every month (at the moment they give out $0.4 per share). If you buy stock in several of these kinds of companies, you are essentially are receiving an income through these dividends.

It’s not as risky as it sounds – if you invest in dividend aristocrats (companies who have been paying increasing dividends for 25 years) it’s highly unlikely the company will go bust. We’re talking huge companies such as McDonald’s, Coca Cola, AT&T, etc.

That’s pretty sweet, the only nag is that you need a portfolio of at least £100,000 if you want to receive £1,000 per month in passive income. You’ll only be receiving pennies when you start out, which is why you need patience and consistency to build this passive income stream. Even more of a reason to start early! 

 

4. Real estate

Of course I had to mention property investing. Buying property and renting it out is a great source of income to have. It’s a good diversification away from the stock market and can be very lucrative if done correctly 😎.

But you’re probably telling yourself: ‘How on Earth do you want me buy property in my twenties? I can’t even afford a car, let alone a house!‘

Chill. Yes, you do need a large initial investment. Yes you need to know what you’re doing. But that’s why it’s so great to start early – to start learning now!

Here are some ways you can get started with property investing now:

  • Educating yourself with resources such as Bigger Pockets
  • Building a good credit score early on
  • Saving and investing the money for a down payment
  • Hustling: checking out houses, learning about the market, going through the process with others

Learn about stuff such as the 1% rule, the best types of houses and areas to invest in and how a mortgage works. Research the best countries to invest in; many times you’ll get a better deal with higher returns elsewhere. Learn what Flag Theory is and how you can use it diversify over the globe. It may seem impossible, but if real estate investing really is an objective of yours, then it’s a matter of research and hustle 📚

multiple income streams
patience and consistency… and you’ll get there

5. Business

A business doesn’t have to mean renting an office, hiring employees, etc. An online business can be a great source of income. As mentioned in point 1, you can follow Benjamin’s path and build an online business after several years in the freelancing market. As you slowly build it up, you set up a system where the business is able to work without you, allowing you to stop exchanging time for money.

What is so great about a business is those last few words: stop exchanging time for money. By removing yourself from the equation , you are building a more passive income stream through automation and systems. This means you can scale and grow an online business much more easily than a freelancing gig. The more work you get, the more people you hire and more income flows in. Not bad, eh?

I’m not saying start an online business immediately, I’m saying build the skills now (that includes the skill of managing people), earn money as a freelancer so you can start that business in the future and treat it as another income stream.  Think it’s not possible? Check out my interview with Benjamin 😉.

 

6. Online products

This could be courses, e-books, videos, etc. If you build a course on a site such as Udemy, it can generate a pretty sweet monthly income. Of course, you may reason that in your twenties you’re still in your skill-building phase and therefore don’t have much to teach others. However, you’d be surprised – that skill you are currently building is something that could be taught to others. And it’s a win win: you learn even more by teaching. 💯

Think of the different things you know enough to teach others, and then see if this is something you’d be willing to turn into a course or e-book. Another pretty sweet income stream 😛

multiple income streams
ever thought of creating a cooking course? 🤔

Those are the 6 main income streams that you can really start building in your twenties. Obviously, there are others such as royalty payments, startup investments, property crowdfunding, etc, but these are harder to start building on early. Your twenties are for building the right skills and continuously saving and investing for the future. Work on 2 or 3 sources of income that interest you, and with patience and consistency you’ll see the fruits of your labour when you need them most: later.

Currently, I invest for capital gains in the stock market and in P2P loans, I earn a side hustle freelance income and a salary from a job. In the background, I’m working on two online businesses and constantly educate myself about property investing (having a podcast helps 😛).

Which income streams are you going to go for? 🧐

 

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My name's Araminta and I'm freelance FinTech Copywriter.

I started Financially Mint to help other 20 something year olds learn about money and fix their finances early in life 💪

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  • 5 Ways to Invest in Yourself in Your Twenties
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Financially Mint is on another break! ☕ I will Financially Mint is on another break! ☕

I will be living in Kuala Lumpur, Malaysia for the next few months, and then hopefully heading to Australia. 
My plans for the next year:

I'm putting the career testing theory into practice. My next career test is working for an NGO here in Kuala Lumpur. This week will be my first week. I will be working with sex trafficking survivors and I've also been asked to do some financial education presentations to help the staff.

After that the plan is to move to Melbourne, Australia, and do my next career test: consulting. If that doesn't work out I will try another career test which may be more achievable: business development in a startup. Thanks to the amazing career books that I've read, I'm pretty confident I can get an interesting job. We'll see how it rolls. 🏀

How am I funding this? I'm very excited to say that I've managed to grow my part-time freelancing income to a full-time income that can sustain me in South East Asia (I would need to work full-time in Europe). I'm calling myself a 'Freelance FinTech Writer'. Rent is crazy cheap (like 300€/month) and it's literally cheaper to eat out than cook. I'm still able to save 15% of my income. 🎉🎉 The increase in clients and pay has been thanks to all the effort I put into Financially Mint, and to some crazy cold emailing and networking in the past few months. 
After some thought, I concluded that learning mark-up language (HTML + CSS) was a more efficient use of my time than writing blog posts and working on FM... so I am now taking a break to learn some basic coding and decide what to do next.

I will still be podcasting and taking part in the FI community on Twitter and everywhere else... so I'll still be seeing you around 😉

To our success 🎉🎉
Only 30% of jobs are posted online. 🙄 Let's sa Only 30% of jobs are posted online. 🙄

Let's say you've got a list of career paths to test. You've figured out a direction, you know which sector you want to work in and you've got some cool companies in mind.

But then what? How do you get an internship in the company you really want to work for? How do you get a job in that specific NGO? How do you get them to notice you? 🤔

In FM's latest post I share a strategy that I am still testing but seems to work - copied from a book titled 'Designing your Life' by Bill Burnett and Dave Evans:

The strategy: Conducting 'Life Design' Interviews. .
A Life Design Interview is basically meeting the person that has your 'dream career' for coffee. ☕

You find someone who is working at the company you want to work for, in the sector you want to work for or simply has a position you're interested in, and you reach out to them (LinkedIn helps). You ask about their story, their position, how they got to where they are and their advice to people starting out. 
This is what I've been doing for the past month in Edinburgh, and of the 40 people I contacted, I met 8 of them for coffee, my goal to simply learn about their story.

With an added bonus: Trust. ✅

Not only did I learn stuff about working in a startup, or as a content writer or working in an NGO, but I also built a trusted connection. It's those connections that help you find the hidden jobs, the dream careers and the best opportunities.

Check out FM's latest post for a proper run down on Life Design interviews. 💪 (Last week we organised the FI Europe podcast retreat! An amazing 4 days doing speeches, masterminds, debates, boat trips, beach and surfing. Post on this coming soon 🔥)
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#financiallymint #budget #budgeting #personalfinance #savinghacks #makemoney #savemoney #money #shoestringbudget #moneyhacks #moneysavinghacks #financialeducation #financialfreedom #adulting #savingtricks #earnmoney #lifeadvice #counsel #careeradvice #retirement #investing #careerbuilding #skillbuilding #career #selfimprovement #inspiring #fieurope #lifedesign #interviews
Investing in yourself now will return bucket loads Investing in yourself now will return bucket loads in the future. 🔮

I talk a lot about this on Financially Mint - how taking the time to build career capital and explore career paths will allow you to find a career of best personal fit, which will then make you the money you need.

But it is true that I am personally at the very start of this journey, and so can't offer many examples of this working. 🤷‍♀️ Well today, this changes as I interview the Financial Gladiator, who did exactly that.

He went to university to study business in Poland, and finished his masters in Australia. In the meantime, he was doing internships, making connections, building skills and beefing up his portfolio. 
He says it himself: ' I always looked to add experience and skills to my repertoire rather than dollars' 💸.
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7 internships later in several different countries and industries and a lot of hustling, moving around and learning about what career fitted him best, FG ended up in a job that paid him a six figure salary. This kept on snowballing, and in his early thirties he hit a salary of over $500,000. .
That goes to show how much investing in yourself can return in the future.
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$500,000 annual salary doesn't need to be your goal, but it still goes to show that you'll make the bulk of your money after investing in your own career. 📈

A great interview filled with actionable career advice and FG's complete story, check out FM's latest blog post! (Edinburgh castle 🔥)
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#financiallymint #budget #budgeting #personalfinance #savinghacks #makemoney #savemoney #money #studentmoney #studenthacks #studentlife #shoestringbudget #moneyhacks #moneysavinghacks #financialeducation #financialfreedom #adulting #savingtricks #earnmoney #lifeadvice #counsel #careeradvice #retirement #investing #careerbuilding #skillbuilding #career #selfimprovement #inspiring #work
Most of us don't know what we want to do in our tw Most of us don't know what we want to do in our twenties 🤷‍♀️. And that's absolutely normal.

But that's why we don't want to be committing to one thing - who know what you might want to do in 5 years? 🧐

Instead of committing, why not be exploring, investigating and testing career paths. But how can you do this cleverly without being a typical 'millennial-career-hopper'? By building career capital at the same time.

This means that every career test you do will help you build skills, connections and a more solid portfolio. If you have no idea where to start, here are some examples of jobs/activities that can help you build career capital:

1. Working for a growing organisation with a growing performance: this could be consulting, a startup - anywhere with a good mentor and team 👨‍👩‍👧‍👦
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2. Graduate studies - for those who want to work in research, a think tank, etc.
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3. Building a valuable and transferable skill - skills such as writing, programming, designing, data science, etc will always be useful in the future 💻
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4. Creating content - you don't always need a shiny piece of paper or a medal to show that you've done something. Creating your own thing can be just as useful.
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And much more amazing career advice... in FM's latest blog post 🤓
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(I’m running out of pictures to post so here’s one of a beautiful evening in Edinburgh) .
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#financiallymint #budget #budgeting #personalfinance #savinghacks #makemoney #savemoney #money #studentmoney #studenthacks #studentlife #shoestringbudget #moneyhacks #moneysavinghacks #financialeducation #financialfreedom #adulting #savingtricks #earnmoney #lifeadvice #counsel #careeradvice #retirement #investing #peoplemanagement #skillbuilding #career #selfimprovement #inspiring #work
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