Are you wondering how to create multiple streams of income in your 20s? This is a good thing to think about because the earlier you start, the sooner you can become financially free.
Thanks to the internet, there are more ways than ever to make money online. However, this doesn’t mean it’s easy. Many people never start a side hustle at all, for fear of failure, or because they get stuck on the procrastination wheel.
The truth is, there is no big secret to building multiple income streams. You don’t need to be the smartest person on the planet, but you do need to be focused, persistent and determined.
This article is going to detail the 6-step process I use and you can use as well, to build extra income streams in your spare time. I’ll also give you a list of the simplest side hustles to get started with.
Just know that not all will work out for you. Building multiple income streams can be a process of trial and error. We are all different people with different strengths and weaknesses. What works for one, might not work out for the other.
But failure is part of the process of an entrepreneurial journey. Failure is a chance to learn, grow and move forwards more intelligently.
‘’Losers quite when they fail. Winners fail until they succeed.’’ Robert T Kyosaki
Tom Corley, the author of Rich Habits, studied 231 self-made millionaires over a period of five years. He found:
- 65% had 3 streams of income
- 45% had 4 streams of income
- 29% had 5 or more streams of income
Over 31% of the self-made millionaires described their backgrounds as poor and 45% as middle class. So where you start from shouldn’t hold you back.
Why Should You Have a Second Source of Income?
A second income stream gives you financial security. This puts you in a more secure position if one income source fails, such as losing a job. Other benefits include:
- Extra money to pay off debts, buy cool stuff and live a more comfortable lifestyle
- Learning how to create multiple streams of income in your 20s is the best way to retire early in your 30s or 40s
- Keep your work-life diverse and interesting by working on multiple income producing projects
- Build wealth and hit millionaire status a lot faster. The average millionaire has 7 streams of income and is always looking to build more
Different Types of Income Sources to Consider
In your 20s, you have multiple options for making extra money. The usual starting point for most is a 9-5 job to pay the bills. Then you can spend your spare time building different income streams. Here are some common ones to look out for:
9-5 Salaried Job
A salaried job is where you work for a person or business, usually for a set amount of hours. You are paid by the hour and receive an agreed salary each month. Earnings are reliable and consistent which is favourable to some people.
Gig Economy
The gig economy has grown in leaps and bounds over the years. Gig jobs are where you get paid for a task through a platform such as Uber, Rover, Airbnb and Deliveroo. Hours are flexible, making it a great option for a second income stream.
Freelance Work
Freelance work is where you lend your skills to multiple clients or a business on a self-employed basis. You have the freedom to work on or decline projects as you see fit. Examples include freelance writing, freelance graphic design or freelance web design and development.
Online Business
The internet has made it possible for anyone to start their own business. An online business is a way to bring in extra income, without the stress of a brick and mortar shop. Ideas include dropshipping, print on demand, Amazon KDP, starting a blog or selling items on eBay.
Passive Income Streams
Passive income is a revenue stream that continues to pay you, even after the initial work is done. This means its great to work around a 9-5 job or an online business you have. Passive income examples include earning royalties from eBooks, selling online courses, ad revenue from a blog and earnings from a rental property.
How to Create Multiple Streams of Income in Your 20s
Now let’s look at how to create multiple streams of income in your 20s. I wish I’d started my wealth-building journey earlier. The sooner you start, the quicker you can break free from a 9-5 you hate and start to live life on your own terms. Here’s what you need to do:
1. Consider Your Likes and Strengths
We all have strengths and weaknesses. While you can learn new skills, you are probably better at some things than others. For example, I was always good at English at school and have been able to make a career out of writing. But, ask me about cryptocurrency and I won’t make much sense!
Another thing to consider is what do you actually enjoy? While you want to make money from a side hustle, if you don’t enjoy it, you won’t last doing it very long. And, the good news is, you can make money from a hobby or passion you have.
Make a list of what you are good at and what you like doing. This should give you some ideas of what income stream to pursue. If you can’t think of anything, there are many simple ways to make extra cash such as becoming a virtual friend, texting lonely people and browsing the web.
2. Get the Relevant Skills You Need
If you want more money, make yourself more valuable by learning new skills. The right skills will help you set up a new business, start a freelance career or even earn more money in the job you have already.
Don’t fret if you have no money to buy expensive courses. You can learn for free on platforms such as Skillshare. On this e-learning platform, you can take courses in subjects such as:
- SEO (search engine optimization)
- Copywriting and creative writing
- Website design and development
- Freelance editing and proofreading
- Graphic design, logos and branding
- Photography and iPhone filmmaking
- Blogging and entrepreneurship
>> Sign up for 30 days of free Skillshare classes here.
3. Start to Lay the Groundwork
By now, you should have narrowed down which new income stream you will pursue first. My advice is to only work on one at a time to avoid overwhelm. Now you need to start laying the groundwork.
This is where the work starts. Unfortunately, there are no shortcuts to success. The first 6 months of starting a new side hustle, is where you need to stay focused and consistent, with little return for your efforts.
‘’Being persistent may lead you to the door, but consistency is the key which unlocks it.’’ Kerry Dasinger
Many people give up at this point. But remember, good things take time to grow. Start to build the framework of your new income stream. Areas to focus on include:
- Write a 3, 6 and 12-month plan
- Create a website or landing page
- Start a business social media account
- Build a portfolio of your work
- Sending 50 cold emails a day to potential clients
- Draft an outline of your new eBook or online course
- Start to make connections in the industry
Try not to worry about making money at this point. Focus on building a rock solid foundation for your new side hustle that’ll set you up for success.
4. Work on Your Second Income Stream Daily
Knowing how to create multiple income streams in your 20s is the first step. The second step is to set aside time each day to work on it. Only working when you feel like it will not get you anywhere fast.
Commit to a minimum of 2 hours a day and find a quiet space to work in. This might mean getting up 2 hours early to work on your side hustle before your job. Or you might prefer doing the extra work in the evening after dinner.
There is no right or wrong time. Just plan your day how it works best for you. Once you make this extra work a non-negotiable, you’ll get on the path for success.
Write down a daily plan of what you have to do to reach an end goal. Here are some examples:
Goal #1: Create an eBook and sell online.
Daily plan: Write 500 words a day.
Goal #2: Earn $1,000 a month from freelance writing.
Daily plan: Email 40 prospects a day.
Goal #3: Make $100 a day affiliate marketing.
Daily plan: Set up a niche social media account and create content daily to build followers.
5. Give Your Side Hustle Time to Grow
The most common reason I’ve seen that causes people to fail is giving up too soon. Of course, it would be nice if we could start earning from a side hustle immediately. However, this is very rare.
It’s easy to get sucked in by adverts you see online, promising fast cash. While some people may experience quick success, the average person needs to work for 6 – 12 months minimum.
Of course, this will depend on the type of income stream you are setting up. Side jobs such as data entry, form filling, proofreading, or transcription will pay monthly, or straight after a task is completed.
If you opt to build an online business or work as a freelancer, you will need time to set yourself up, market your services and get paying clients.
6. Once Successful, Repeat the Process
It’s important not to rush into setting up the next income stream before the first one is successful. I know this from experience because I’ve tried to take on too much at one point and I definitely got burned out.
Focusing on one new income stream at a time, allows you to focus all your energy on one thing, which will get you faster results.
But, once you have started making money from a second income stream, you can start building a third one if you wish.
If you plan on building multiple income streams, passive income is the way to go. This is because, after you put the work in up-front, the money should continue to flow in, without much extra work.
By taking on too many side jobs that require your time, you’ll end up having no free time at all!
The Best Ideas for Multiple Streams of Income
Are you ready to build multiple streams of income in your 20s? Great! You just need to get creative and come up with a few ideas. There are countless ways to make extra money, you just need to choose one and get started. Here are a few ideas to get you started:
- Get paid to click ads
- Create and sell simple crafts
- Read audiobooks for money
- Sell simple freelance services on Fiverr
- Become a freelance writer
- Work as a virtual assistant
- Become a transcriptionist
- Affiliate marketing on Twitter
- Affiliate marketing on Pinterest
- Rent out your gadgets on Fat Llama
- Start an Etsy or eBay store
- Start a print on demand business
- Advertise on your vehicle
- Pet sitting or house sitting
- Start a YouTube channel
- Build a blog and sell ad space
This list is endless and I could go on forever. All of these income streams are tried and tested and have the potential to make you a few hundred dollars or multiple thousands each month.
To find out which works for you, start taking action. The best way to learn is by doing. I have tried multiple side hustles that didn’t work, but what I learned was invaluable.
How to Create Multiple Streams of Income in Your 20s – FAQs
How Many Income Streams Does a Person Need?
There is no exact number of income streams a person needs. But, having 2 or 3 income streams is a good number to aim for. Extra money keeps you supported financially, should one income stream fail.
How Do I Create Multiple Streams of Income?
First, you need to decide which new income stream to build. Make a plan of what you need to work on daily. Take consistent action until you make money from this new source of income and move on to the next side hustle.
What Do I Need to Build Multiple Income Streams?
To build multiple income streams you need extreme focus, determination and the ability to take consistent action. Spend at least 2+ hours a day working on each income stream until it brings in money.
Can Anyone Build Multiple Income Streams in Their 20s?
Yes! Anyone can build multiple streams of income in their 20s, regardless of where they come from, or if they have any startup capital. Thanks to the internet, most online businesses and side hustles can be started for free or very little online.
Final Thoughts on How to Create Multiple Streams of Income in Your 20s
Now you know how to create multiple streams of income in your 20s. Choose one, learn the right skills and put your head down for 6 months to see where it takes you.
Luckily, starting in your 20s means you have time on your side! Don’t be afraid to fail – successful people fail multiple times before they hit the jackpot. Eventually, you’ll find what works for you and your income portfolio will grow.
By the time you’re in your 30s or 40s you could be travelling the world, as your own boss, living on the income you set up as a youngster!
Have you tried any of the side hustles mentioned in this article? Are you in your 20s building different income streams? I’d love to know in the comments.
The post How to Create Multiple Streams of Income in Your 20s (Step By Step Guide) appeared first on Remote Work Rebels.
* This article was originally published here
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