In today's world, having multiple sources of income has become pivotal for financial security. Relying solely on a 9-to-5 job may not be enough to fulfill my long-term financial goals. Therefore, in this article, I will share my favorite sources of income that I could pull off as an average employee, that I am trying to grow over time. There are more sources I want to expand on in the future, but for now, these are the sources that I have.
9-to-5 Job Salary
A traditional job remains a reliable and consistent source of income and is my main source of income, which I would like to decrease over time. A steady paycheck provides financial stability, employee benefits, and opportunities for career growth.
Dividend Income
Investing in dividend-growth stocks has the potential to generate passive income. Dividends are a portion of a company's profits distributed to shareholders as a reward for owning their stock. Dividend income is attractive because it allows you to earn money while you sleepThis is by far my favorite not only is it quite passive it grows over time, without additional effort, I enjoy doing the research and seeing my investments compound over time, and I would like dividend income to be a growing and even at one point be the majority of my income.
Rental Properties
Owning rental properties is an excellent way to generate income and build wealth over the long term. Real estate investments offer both monthly rental income and the potential for property value appreciation. By renting out properties, you can create a consistent cash flow that can be reinvested or used to cover other expenses. Although managing rental properties requires effort and expertise, the benefits can be substantial. Currently, I am working on getting a rental property up and running, and is definitely not a passive source of income, at least at the beginning, and will definitely require some maintenance over the run. However, having a tangible asset and seeing it produce some benefit is definitely something I would enjoy having.
Savings through Interest
While interest rates may vary and we have seen an increase recently, utilizing savings accounts, certificates of deposit (CDs), or other low-risk investments can provide a steady source of income through interest. By setting aside a portion of your income and depositing it into a savings account or investing in conservative financial instruments, you can earn interest that compounds over time. This has been more interesting in recent months due to the rising interest rates, making it more attractive, While I would prefer dividend investing overall, right now with the current interest rates it has definitely been an attractive form of earning passive income recently, the best has been with deposits over a longer term yielding some nice interest. By setting aside a portion of your income and depositing it into a savings account or investing in conservative financial instruments, you can earn interest that compounds over time. This form of income may not provide significant returns, but it serves as a reliable option to safeguard your funds I keep some money on the sides for various reasons and is definitely nice to earn some passive income with it.
Conclusion
Diversifying your sources of income is crucial for financial stability and security. By relying solely on a 9-to-5 job salary, you limit your potential for growth and expose yourself to a higher level of risk. Incorporating additional sources such as dividend income, rental properties, and savings through interest has provided me with multiple streams of income although it is small, it is definitely something that I would like to grow over the longer term.
I know that building a diversified income portfolio takes time, effort, and careful planning, but the rewards can be substantial. I have always been skeptical when reading about the various sources of income while I believe them, I think that sometimes what we read and see on the internet may seem unachievable, but at least from my side as a starting I can say that some may be achievable. See me tracking my income.
Disclaimer: I am not a financial advisor, this blog is centered around my opinion and should not be viewed as legal, professional, or financial advice.
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