Have you ever wanted to create multiple streams of income when you’re in your 20s? I mean, you’ll probably be making money from your job but let’s be honest, that’s not going to cover everything.
Creating multiple sources of income will help you have the flexibility to do everything you want.
Find a steady job
Looking for a steady job can be tough to navigate, especially when you’re young and don’t have much of work history. Many employers are hesitant about hiring someone as inexperienced as you are, even if you’ve demonstrated the ability to make good money on your own.
To help you get where you need to go, here are some tips from my own experience.
Back up your primary income with a side hustle
Many people are able to supplement their income with a side gig. What that extra income is and how much you can earn depends on the kind of hustle you’re willing to put in.
It can involve anything from picking up some overtime hours at your job, to monetizing a hobby or talent, like blogging, driving for Uber, starting an Etsy shop or developing your social media following.
The possibilities are endless here — so don’t be afraid to get creative! Find something you enjoy doing and think about how it could be used as a source of extra income.
More importantly, though, being aware of the relationships between different sources of income will help you manage them better and maximize their benefits for you.
For instance, if your side hustle is related to what you do professionally (for instance, maybe your day job is working in marketing but on weekends you run an Etsy shop), consider how one could bolster the other — they might actually work together well in the long run!
For example, if part of your day job involves building product pages on a retail website but creating those pages isn’t exactly stimulating work for you anymore, perhaps thinking about how those product pages could look on an Etsy shop would provide some inspiration?
Make money online
Working for another company during your 20s can be a great way to learn about different industries and working conditions.
The big challenge of a job is that it often interrupts your other hobbies and chances to make money on the internet. It’s important to not neglect the second part, so you need to find ways of making money online as well.
Here are some ideas:
- Start or join a popular blog.* Setup and promote your own social media pages.* Find an affiliate program that pays you when people click on links you send them.* Set up a website with multiple income streams (such as selling digital products, like eBooks).
Think About Real Estate or other investing opportunities
In your 20s, you should be doing plenty of thinking about the future and how to meet your financial goals. Investing in real estate is one way to grow your money, but for many young people, making a big investment isn’t feasible.
And even if it is, buying property can be risky—a bad investment can leave you high and dry when you’re trying to build an income from nothing.
That’s why it’s important to think beyond investing in real estate and consider other ways of growing your money.
If you invest in something like real estate and then sell it later on for more than what you paid for it, that’s a capital gain—and those are taxable.
You’ll have to pay capital gains taxes on everything over $1,000 profit that you make from selling an asset like shares of stock or residential property.
The amount of tax due will depend on what kind of asset was sold and how long ago the asset was purchased.
You should create multiple streams of income at an early age to ensure your financial future.
If you’re thinking about making money in your 20s and 30s, you are probably thinking about the long run, which is a smart move.
While there are risks, it’s also possible to minimize them through diversification. A portfolio of assets always has a certain amount of risk since no one knows what will happen in the future, but adding more sources or streams of income can help reduce this risk.
Your goal should be to create multiple streams of income so that if one source dries up, you’ll still have others to fall back on.
How to create a side hustle?
Side hustles are extra income streams that you can begin creating on the side. They can be as simple as selling your old clothes online, or as serious as starting an online business. Here are some examples of what you can do:
- Rent out your apartment or spare room on Airbnb.
- Sign up for Uber and drive people around in your free time.
- Sell items that you no longer need on Craigslist, eBay, or Etsy.
- Start a small blog advertising something (makeup tutorials, knitting patterns).
- Design wedding invitations and sell them on Etsy.
How to invest in the stock market?
You’ve probably heard your friends talk about stockbrokers and investment funds, but the truth is, you don’t need to get too bogged down in all that confusing jargon. Just understand the basics.
For example, let’s say you want to invest $500 a year for 20 years and earn a tidy 6% per year on top of that. If you put it into an index fund—one that tracks industry-wide indexes such as S&P 500 or Nasdaq—then you’re guaranteed to at least get 6%; plus there’s always a chance of getting more if the market does better than expected (e.g., upon its recent rise).
If you invest in an index fund with the cash portion of your paycheck throughout the year until retirement, then when you draw out your pension check every month, a percentage of it will be invested in an index fund and grow tax-deferred.
The other piece of good news: because investments grow tax-deferred until they are withdrawn, there is no fee attached to them (you don’t pay taxes on them until withdrawal). Watch how much money you can save over time by investing wisely.
How to start making money online?
If you want to start making money online, you’ve come to the right place. Today’s post is a comprehensive guide on how to learn how to make money selling products online through eCommerce.
Regardless of which industry you choose, making money by selling products and services online may take some time before it will become profitable. The key is to stick with it until your become profitable.
The key takeaway here is that there are many ways of making additional income in your 20s, so don’t limit yourself and think out of the box! There are so many opportunities for you to monetize your skills and talents, but most importantly: find something that allows you to enjoy doing what you do!
How to make money off your hobbies?
- Love your hobby
A great way to create a stream of income on the side is to turn one of your hobbies or skills into a profitable business. To make money with a business, you first need to be passionate about what you’re doing. If you’re not passionate about it, it will be very hard to keep going when things get tough and stay consistent in the long run. If there are any hobbies that you really love, this could be a great opportunity for you.
- Is your hobby scalable?
Can you see yourself doing this for hours every single day? Is your hobby scalable enough that it can become a full-time job? Or can you at least supplement your main source of income?
- There are several ways that you can make money from your hobbies: sell products, provide services, teach others and write articles.
Here are four ways you can get started?
- Get as much information as you can—the more knowledge you have, the easier it will be to choose your path.
- Don’t expect to make a lot of money right away; this is a marathon and not a sprint.
- Start with one income stream at a time and build on what works best for you.
- Find the path in which you have the most interest; this increases your likelihood of success.
Although you may struggle with creating multiple streams of income in your 20s, all it takes is confidence and a belief in yourself to create the wealth you desire.
If you have those, then you will be able to find a way to earn money, even if it doesn’t involve a defined career path. You are your best resource for success, and finding new ways to earn money is about using that expertise. So just Start 🚀