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The 6 Biggest Mistakes In Creating Multiple Income Streams
It’s likely that you have one primary source of income — just like most people. It’s fine to have a … Read more
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It’s likely that you have one primary source of income — just like most people. It’s fine to have a single source of income. It can, however, be dangerous as well.
How would you cope if your primary source of income dried up, or your job was lost? That’s exactly what happened in the aftermath of the pandemic, many people lost their jobs and were furloughed.
The unemployment rate spiked in April after business closures and restrictions began in March 2020. By May, 23 million jobs were lost cumulatively. There hasn’t been a crisis as severe as this since the Great Depression. Suffice it to say, this created financial hardship for millions of people, which may explain why savings are dwindling and there’s record credit card debt.
This is why having multiple income streams is so important. By doing so, you won’t have to worry about losing one income stream if another one runs out.
Furthermore, Richard Corley, author of “Rich Habits: The Daily Success Habits of Wealthy Individuals”, analyzed IRS data and found that 75% of millionaires have multiple income streams.
And, that makes sense. It is easier to pay off debt, save for retirement, and build wealth when you have multiple income streams.
Creating multiple streams of income can be tricky, so let me tell you a few of the biggest mistakes people make. By avoiding these mistakes, you can generate multiple streams of income.
1. Master one revenue stream.
Perhaps the biggest mistake I see people make, myself included, before making multiple streams of income is this. You need to master at least one reliable form of income.
Maybe it’s your 9-to-5 job. And, that’s OK. In my case, it was when I became a financial planner that really taught me this. Five years into my career as a W-2 employee at the first investment firm I started with, I became an independent advisor before co-founding my own firm.
After that, I became an independent contractor under 1099. At that stage of my life, I remember being obsessed with making money on the side, whether it be in real estate or multi-level marketing. But, that plan didn’t exactly work.
So, instead, I pivoted and created multiple streams of income based on my experience as a financial advisor.
- Websites. My financial practice and GoodFinancialCents are two of the many income streams I have built over the years. Until recently, I was earning a side income while helping people decide which kind of insurance they needed through LifeInsurancebyJeff.com.
- Investing. Investing is the most obvious way for me to earn extra income. While everyone invests differently, most people use mutual funds, ETFs, or dividends to make extra income.
- Media deals. Media deals are another source of income. Years ago, I would never have imagined this happening, but it has worked out quite well. Putting myself out there by doing YouTube videos and interviews is something I enjoy already. Through media deals, I’ve had the opportunity to represent and market the products of big financial brands.
- Creating online courses. Additionally, I have launched an online course for financial advisors – The Online Advisor Growth Formula. Revenue from this resource alone exceeds $100,000.
But, I’m not the only one who knows this secret.
“When you are deciding on adding another income flow, I want you to consider something in the same industry or a parallel one,” advises Grant Cardone. “This approach allows these multiple flows to feed and fuel one another, which ensures their strength.”
As the expert in your field, you know the ins and outs like no other, he continues. Having to deal with problems on a daily basis is part of what you do. As a result, you could even invent a business solution to earn additional income.
“The possibilities are endless, and it’s the way to make this technique work without running in circles,” Cardone adds.
2. Make sure you don’t obsess over other people’s incomes.
Don’t be influenced by what others make. Instead, focus on you. Do what feels right to you, and forget about outside influences telling you you aren’t hustling enough. There is no guarantee that every income stream will be suitable for you.
Case in point, I had a chance to start a marathon when I lived in a wine country with a former client. Two problems. I didn’t drink wine. And, because I have bad knees, I hate running.
There was a lot of money to be made. However, I was neither knowledgeable nor passionate about it.
Relax and enjoy the feeling of contentment. You shouldn’t feel guilty about setting your own achievements and earnings goals. It’s incredible what happens when you realize what is good enough. Eventually, you become good enough.
Just because someone else made $15k last month with a blog, home-based business, social media influencer, or monetized YouTube channel, think twice before taking the plunge yourself. Don’t forget the cost you may incur in terms of joy, sanity, energy, time, and self-esteem. These are the things that may be taken away from you.
In short, there is no reason not to take chances or strive for success. Rather, you should decide what is best for you rather than what is appropriate for someone else when taking a risk.
3. Your other revenue streams are affected.
Let me tell you the story of Nathan Barry.
It’s 2007 and Nathan is studying graphic design and marketing at Boise State University. While building websites for companies, he dropped out of college and started his own business. During the global financial crisis of 2007/2008, however, work dried up, and he took a job as a contractor at a digital communications software company before going back to freelancing.
His sales soon exceeded $2,000 per month. His blog, eBooks, and packages with useful code and other resources for app-making were published through his blog and self-publishing. A lot of money was being made from the sales of his books. Within 24 hours of his first book launch, he did $12,000 in business, and the following day his second book launch did twice as much.
In order to build his subscriber list and promote his products, Nathan used Mailchimp to build his email list. Although he used the email marketing service and marketing automation platform, he always felt limited by their limitations. He then founded and became CEO of ConvertKit to solve this problem.
It was his opinion that he might be able to sustain both businesses simultaneously in a podcast interview. But he found that his book business took a serious dip as he couldn’t dedicate as much time to it.
Nathan eventually reached a crossroads. Shut down ConvertKit or devote more time to it to make it something special.
“So I shut down my course business because I’m not good at doing two things at once,” he said on the Go-To Gal Podcast. “I’m a focused person. And all these people are like, oh, I’m a serial entrepreneur; I run seven businesses. I’m like great, I’m so happy for you. That is not me at all. I run one business. And hopefully, I do it well.”
It is easy for new revenue streams to take over existing projects when added. As long as you’re not against dedicating more time to the project requiring more attention, that’s fine. However, if you do not look forward to your new project, you might find it challenging.
4. You’re a victim of shiny object syndrome.
For those not familiar with Shiny object syndrome (SOS), it is a state of constant distraction that arises from an ongoing belief that there is something new to pursue. As a result, it takes away from what’s already planned or in progress. It’s rooted in that childhood phenomenon of wanting a new toy even if you don’t want to part with your current one.
Basically, it’s chasing the next “Great Thing,” the current “Flavor of the Month,” or quick cash. While shiny objects may be appealing, they do not provide long-term benefits.
Decide what your goals are and how the new opportunity aligns with them. Think about the impact this new income stream will have on your life and business.
Understand the time required for the opportunity and what you hope to achieve. Take into account the required financial investment as well.
Consider taking action only when there are clear benefits. Do not overload yourself by doing too many things at once. Instead, focus on your current priorities.
5. Passive income isn’t really passive.
You should diversify your income into passive income assets. Ideally, this shouldn’t take a lot of effort or brainpower.
To keep passive income sources flowing over nicely and from grinding to a halt or even costing you money, you must still take action from time to time.
One of the best examples of this is investing in real estate. As much as you would like to see your portfolio generate rental income over time, you also need to accept the responsibility for maintaining the premises and resolving tenant issues.
This type of management can be outsourced to a third party. However, you should also take into account the associated fees.
6. More income streams, more responsibilities.
It’s hard to track multiple revenue streams without good reporting. As an example, you might have four streams of income to juggle. To properly evaluate revenues, expenses, and profits, you may need the assistance of an outside bookkeeper.
People don’t tell you that when you earn multiple streams of income, you take on more responsibilities as well. However, I began to realize which parts of the day-to-day task I needed to eliminate. You can do this by hiring virtual assistants and, independent contractors, or even full-time employees. But, the hiring process still can be time-consuming. And, this will also eat into your profits.
FAQs
Multiple income streams: what are they?
It just means that you have income coming from multiple sources if this is your first time hearing about it.
You have multiple streams of income if, say, you have a 9-5 job, drive for Uber, or create YouTube videos.
What are the benefits of multiple income streams?
Multiple sources of income are important because they allow you to retain your income if one source ceases or is eliminated. If anything goes wrong, there’s always a safety net to catch you.
Savings can be increased by earning additional income. Growing your savings account is key to protecting against unexpected costs and living cost increases, as well as reaching goals like early retirement.
To build wealth and succeed financially, you need multiple income streams. Many millionaires have more than one source of income. A variety of income streams allows you to have peace of mind about your finances because you aren’t dependent on one job or investment.
What are the best ways to generate multiple streams of income?
Investing in rental properties, buying stock market investments, or selling products or services online are all ways to create multiple income streams. In order to create additional sources of income, you should assess your skills and interests.
Can full-time workers create multiple income streams?
Yes. You can create multiple income streams as well as work a full-time job.
Often, people begin with part-time freelance work or side hustles, gradually increasing their income and potentially transitioning to full-time self-employment.
Which income streams are right for me?
It is important to take your skills, interests, and resources into consideration when choosing an income stream. Researching markets and identifying opportunities that are available and in demand is also helpful.
Developing multiple income streams gradually is okay if you start small.
The post The 6 Biggest Mistakes in Creating Multiple Income Streams appeared first on Due.
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Comments on February Employment Report
The headline jobs number in the February employment report was above expectations; however, December and January payrolls were revised down by 167,000 combined. The participation rate was unchanged, the employment population ratio decreased, and the …
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Prime (25 to 54 Years Old) Participation
Since the overall participation rate is impacted by both cyclical (recession) and demographic (aging population, younger people staying in school) reasons, here is the employment-population ratio for the key working age group: 25 to 54 years old.
The 25 to 54 years old participation rate increased in February to 83.5% from 83.3% in January, and the 25 to 54 employment population ratio increased to 80.7% from 80.6% the previous month.
Average Hourly Wages
The graph shows the nominal year-over-year change in "Average Hourly Earnings" for all private employees from the Current Employment Statistics (CES). Wage growth has trended down after peaking at 5.9% YoY in March 2022 and was at 4.3% YoY in February.
Part Time for Economic Reasons
From the BLS report:"The number of people employed part time for economic reasons, at 4.4 million, changed little in February. These individuals, who would have preferred full-time employment, were working part time because their hours had been reduced or they were unable to find full-time jobs."The number of persons working part time for economic reasons decreased in February to 4.36 million from 4.42 million in February. This is slightly above pre-pandemic levels.
These workers are included in the alternate measure of labor underutilization (U-6) that increased to 7.3% from 7.2% in the previous month. This is down from the record high in April 2020 of 23.0% and up from the lowest level on record (seasonally adjusted) in December 2022 (6.5%). (This series started in 1994). This measure is above the 7.0% level in February 2020 (pre-pandemic).
Unemployed over 26 Weeks
This graph shows the number of workers unemployed for 27 weeks or more. According to the BLS, there are 1.203 million workers who have been unemployed for more than 26 weeks and still want a job, down from 1.277 million the previous month.
This is close to pre-pandemic levels.
Job Streak
| Headline Jobs, Top 10 Streaks | ||
|---|---|---|
| Year Ended | Streak, Months | |
| 1 | 2019 | 100 |
| 2 | 1990 | 48 |
| 3 | 2007 | 46 |
| 4 | 1979 | 45 |
| 5 | 20241 | 38 |
| 6 tie | 1943 | 33 |
| 6 tie | 1986 | 33 |
| 6 tie | 2000 | 33 |
| 9 | 1967 | 29 |
| 10 | 1995 | 25 |
| 1Currrent Streak | ||
Summary:
The headline monthly jobs number was above consensus expectations; however, December and January payrolls were revised down by 167,000 combined. The participation rate was unchanged, the employment population ratio decreased, and the unemployment rate was increased to 3.9%. Another solid report.
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Immune cells can adapt to invading pathogens, deciding whether to fight now or prepare for the next battle
When faced with a threat, T cells have the decision-making flexibility to both clear out the pathogen now and ready themselves for a future encounter.
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How does your immune system decide between fighting invading pathogens now or preparing to fight them in the future? Turns out, it can change its mind.
Every person has 10 million to 100 million unique T cells that have a critical job in the immune system: patrolling the body for invading pathogens or cancerous cells to eliminate. Each of these T cells has a unique receptor that allows it to recognize foreign proteins on the surface of infected or cancerous cells. When the right T cell encounters the right protein, it rapidly forms many copies of itself to destroy the offending pathogen.
Importantly, this process of proliferation gives rise to both short-lived effector T cells that shut down the immediate pathogen attack and long-lived memory T cells that provide protection against future attacks. But how do T cells decide whether to form cells that kill pathogens now or protect against future infections?
We are a team of bioengineers studying how immune cells mature. In our recently published research, we found that having multiple pathways to decide whether to kill pathogens now or prepare for future invaders boosts the immune system’s ability to effectively respond to different types of challenges.
Fight or remember?
To understand when and how T cells decide to become effector cells that kill pathogens or memory cells that prepare for future infections, we took movies of T cells dividing in response to a stimulus mimicking an encounter with a pathogen.
Specifically, we tracked the activity of a gene called T cell factor 1, or TCF1. This gene is essential for the longevity of memory cells. We found that stochastic, or probabilistic, silencing of the TCF1 gene when cells confront invading pathogens and inflammation drives an early decision between whether T cells become effector or memory cells. Exposure to higher levels of pathogens or inflammation increases the probability of forming effector cells.
Surprisingly, though, we found that some effector cells that had turned off TCF1 early on were able to turn it back on after clearing the pathogen, later becoming memory cells.
Through mathematical modeling, we determined that this flexibility in decision making among memory T cells is critical to generating the right number of cells that respond immediately and cells that prepare for the future, appropriate to the severity of the infection.
Understanding immune memory
The proper formation of persistent, long-lived T cell memory is critical to a person’s ability to fend off diseases ranging from the common cold to COVID-19 to cancer.
From a social and cognitive science perspective, flexibility allows people to adapt and respond optimally to uncertain and dynamic environments. Similarly, for immune cells responding to a pathogen, flexibility in decision making around whether to become memory cells may enable greater responsiveness to an evolving immune challenge.
Memory cells can be subclassified into different types with distinct features and roles in protective immunity. It’s possible that the pathway where memory cells diverge from effector cells early on and the pathway where memory cells form from effector cells later on give rise to particular subtypes of memory cells.
Our study focuses on T cell memory in the context of acute infections the immune system can successfully clear in days, such as cold, the flu or food poisoning. In contrast, chronic conditions such as HIV and cancer require persistent immune responses; long-lived, memory-like cells are critical for this persistence. Our team is investigating whether flexible memory decision making also applies to chronic conditions and whether we can leverage that flexibility to improve cancer immunotherapy.
Resolving uncertainty surrounding how and when memory cells form could help improve vaccine design and therapies that boost the immune system’s ability to provide long-term protection against diverse infectious diseases.
Kathleen Abadie was funded by a NSF (National Science Foundation) Graduate Research Fellowships. She performed this research in affiliation with the University of Washington Department of Bioengineering.
Elisa Clark performed her research in affiliation with the University of Washington (UW) Department of Bioengineering and was funded by a National Science Foundation Graduate Research Fellowship (NSF-GRFP) and by a predoctoral fellowship through the UW Institute for Stem Cell and Regenerative Medicine (ISCRM).
Hao Yuan Kueh receives funding from the National Institutes of Health.
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Stock indexes are breaking records and crossing milestones – making many investors feel wealthier
The S&P 500 topped 5,000 on Feb. 9, 2024, for the first time. The Dow Jones Industrial Average will probably hit a new big round number soon t…
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The S&P 500 stock index topped 5,000 for the first time on Feb. 9, 2024, exciting some investors and garnering a flurry of media coverage. The Conversation asked Alexander Kurov, a financial markets scholar, to explain what stock indexes are and to say whether this kind of milestone is a big deal or not.
What are stock indexes?
Stock indexes measure the performance of a group of stocks. When prices rise or fall overall for the shares of those companies, so do stock indexes. The number of stocks in those baskets varies, as does the system for how this mix of shares gets updated.
The Dow Jones Industrial Average, also known as the Dow, includes shares in the 30 U.S. companies with the largest market capitalization – meaning the total value of all the stock belonging to shareholders. That list currently spans companies from Apple to Walt Disney Co.
The S&P 500 tracks shares in 500 of the largest U.S. publicly traded companies.
The Nasdaq composite tracks performance of more than 2,500 stocks listed on the Nasdaq stock exchange.
The DJIA, launched on May 26, 1896, is the oldest of these three popular indexes, and it was one of the first established.
Two enterprising journalists, Charles H. Dow and Edward Jones, had created a different index tied to the railroad industry a dozen years earlier. Most of the 12 stocks the DJIA originally included wouldn’t ring many bells today, such as Chicago Gas and National Lead. But one company that only got booted in 2018 had stayed on the list for 120 years: General Electric.
The S&P 500 index was introduced in 1957 because many investors wanted an option that was more representative of the overall U.S. stock market. The Nasdaq composite was launched in 1971.
You can buy shares in an index fund that mirrors a particular index. This approach can diversify your investments and make them less prone to big losses.
Index funds, which have only existed since Vanguard Group founder John Bogle launched the first one in 1976, now hold trillions of dollars .
Why are there so many?
There are hundreds of stock indexes in the world, but only about 50 major ones.
Most of them, including the Nasdaq composite and the S&P 500, are value-weighted. That means stocks with larger market values account for a larger share of the index’s performance.
In addition to these broad-based indexes, there are many less prominent ones. Many of those emphasize a niche by tracking stocks of companies in specific industries like energy or finance.
Do these milestones matter?
Stock prices move constantly in response to corporate, economic and political news, as well as changes in investor psychology. Because company profits will typically grow gradually over time, the market usually fluctuates in the short term, while increasing in value over the long term.
The DJIA first reached 1,000 in November 1972, and it crossed the 10,000 mark on March 29, 1999. On Jan. 22, 2024, it surpassed 38,000 for the first time. Investors and the media will treat the new record set when it gets to another round number – 40,000 – as a milestone.
The S&P 500 index had never hit 5,000 before. But it had already been breaking records for several weeks.
Because there’s a lot of randomness in financial markets, the significance of round-number milestones is mostly psychological. There is no evidence they portend any further gains.
For example, the Nasdaq composite first hit 5,000 on March 10, 2000, at the end of the dot-com bubble.
The index then plunged by almost 80% by October 2002. It took 15 years – until March 3, 2015 – for it return to 5,000.
By mid-February 2024, the Nasdaq composite was nearing its prior record high of 16,057 set on Nov. 19, 2021.
Index milestones matter to the extent they pique investors’ attention and boost market sentiment.
Investors afflicted with a fear of missing out may then invest more in stocks, pushing stock prices to new highs. Chasing after stock trends may destabilize markets by moving prices away from their underlying values.
When a stock index passes a new milestone, investors become more aware of their growing portfolios. Feeling richer can lead them to spend more.
This is called the wealth effect. Many economists believe that the consumption boost that arises in response to a buoyant stock market can make the economy stronger.
Is there a best stock index to follow?
Not really. They all measure somewhat different things and have their own quirks.
For example, the S&P 500 tracks many different industries. However, because it is value-weighted, it’s heavily influenced by only seven stocks with very large market values.
Known as the “Magnificent Seven,” shares in Amazon, Apple, Alphabet, Meta, Microsoft, Nvidia and Tesla now account for over one-fourth of the S&P 500’s value. Nearly all are in the tech sector, and they played a big role in pushing the S&P across the 5,000 mark.
This makes the index more concentrated on a single sector than it appears.
But if you check out several stock indexes rather than just one, you’ll get a good sense of how the market is doing. If they’re all rising quickly or breaking records, that’s a clear sign that the market as a whole is gaining.
Sometimes the smartest thing is to not pay too much attention to any of them.
For example, after hitting record highs on Feb. 19, 2020, the S&P 500 plunged by 34% in just 23 trading days due to concerns about what COVID-19 would do to the economy. But the market rebounded, with stock indexes hitting new milestones and notching new highs by the end of that year.
Panicking in response to short-term market swings would have made investors more likely to sell off their investments in too big a hurry – a move they might have later regretted. This is why I believe advice from the immensely successful investor and fan of stock index funds Warren Buffett is worth heeding.
Buffett, whose stock-selecting prowess has made him one of the world’s 10 richest people, likes to say “Don’t watch the market closely.”
If you’re reading this because stock prices are falling and you’re wondering if you should be worried about that, consider something else Buffett has said: “The light can at any time go from green to red without pausing at yellow.”
And the opposite is true as well.
Alexander Kurov does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
dow jones sp 500 nasdaq stocks covid-19
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