Let’s be real – it’s always nice to save some money. But you’re gonna have to make bigger strides if the goal is total financial freedom… as opposed to pinching pennies. To be more specific, it’s high time you venture into multiple streams of income. Think of it like building a financial safety net; if one stream dries up, others can still keep you going. This is how people with real financial stability manage to stay on top.
Without further ado, let’s acquaint you with the best ways you can make more money. Here are several types of income streams you can stack on top of your current income source.
1. Earned income
This is the more traditional one: The money we receive as compensation for the time spent doing labor. This includes any kind of work where you trade your time for money, whether you do it full-time, part-time, or as a side gig.
Speaking of side gigs, it’s no longer unusual to onboard a second job, especially with the challenging economic times. There are plenty of online freelance jobs out there that can be effective in making the most of your free time.
Pro Tip: For starters, set up a LinkedIn profile or constantly update the one you already have. There’s always a recruiter out there looking for a special set of skills which may coincide with what you specialize in.
2. Profit
This refers to the money you make by marking up a certain commodity you put on sale. This is the backbone of every business. What makes it more attractive is, unlike earned income, your profit is not necessarily hinged upon work hours.
Pro Tip: Testing the waters first is always a good idea. Start small by selling stuff you no longer use through Facebook Marketplace or ecommerce platforms such as Shopee and Lazada. Either way, you’re dispensing stuff that’s merely collecting dust in exchange for money you can save. A total win!
3. Interest Income
Interest income is the money you make from a time deposit or savings account. It can also come from lending your money and collecting interest.
Time deposits and savings have very minimal risks because you’re just letting the bank do the leg work for you. If you have a higher risk tolerance in pursuit of greater yields, the lending business might just be the thing you need because you set the rules – what the interest rates are and the repayment terms.
If you want a passive income where you won’t need to put in the much effort to grow your money, this is the type that does that. Interest income may seem like it has the lowest return of them all, but in the long run with a good amount of money in place, in compounding interest, this will be the ultimate passive income that many of us could only dream of.
Pro Tip: Look into peer-to-peer lending if you want to step up your game. Platforms like BitBond and Blend PH connect you directly with borrowers. Just remember, the higher the risk, the higher the reward (and vice versa).
4. Rental income
From the word itself – rental. You earn by renting out a property or asset. This income is pretty straightforward and probably among the most dependable. The only downside is the need to own a property or an asset that is rentable. To obtain such high-value assets, you will need to fork out a large sum of money.
It’s worth mentioning that owning a property is in and of itself an already good investment opportunity. If the rental no longer serves its purpose, there’s always the option to sell, especially above acquisition price.
Pro Tip: Aside from real estate, renting out vehicles is a solid alternative. With booking apps like Grab, there’s no need to sign your vehicle up for expensive franchising. All you have to do is sign up and find a reliable group of licensed drivers who can take shifts in operating your vehicle for hire.
5. Dividend income
Like interest income, but better. Dividends are money you earn from publicly traded companies for buying a share of their company. It’s passive income at its finest.
If you’re new to investing, platforms like COL Financial make it easy to start trading on the Philippine Stock Exchange (PSE). This also enables you to earn dividends without doing much more than buying and holding stocks.
6. Capital Gains
This is the type of income rooted from buying an asset and selling at a higher price. It’s akin to running a business, but instead of selling products, you’re flipping assets such as stocks, real estate properties, or even collectibles. In other words, it is the business of acquiring certain commodities based on their potential to grow in value over time.
Anything that appreciates in value can be sold for capital gains. We’re talking about assets like gold, stocks, cars, or even vintage action figures.
CAUTION: Keep an eye on trends and make sure that you’re not run by your emotions. Avoid FOMO (fear of missing out) buying, which is usually preceded by the unwarranted hype of certain things. Most importantly, buy low and sell high!
7. Royalty Income
This is the money you earn when someone else uses what you develop, which could be an idea, brand, or product. You don’t do the heavy lifting—you just lend them your intellectual property and you get paid for it.
A shining example of this would be the famous fast-food chains like Jollibee and McDonald’s, or the convenience store 7-Eleven. The owners of these brands are paid by their franchisee for using their processes, their logo, and marketing, as well as their business name, to earn money.
Pro Tip: Royalty income isn’t reserved just for big brands like McDonald’s or Jollibee. You can earn royalties from creative work, like music, videos, or even photos. Sites like Shutterstock pay royalties for stock photos and videos.
8. Subscription Income
Subscription income is earned when you provide a product or service that consumers pay for on a regular basis, usually monthly or annually. This could range from a subscription box service to a membership website, or even a newsletter with premium content. Subscription models are popular because they offer a consistent and predictable source of income.
Pro Tip: If you have a one-of-a-kind product or service that offers continual value, consider using a subscription model. This technique not only helps to retain clients, but it also fosters long-term connections, which can lead to increased lifetime value.
9. Residual Income
This is the ultimate dream—income that continues to generate even after you’ve completed the work. With today’s digital platforms, residual income is more accessible than ever. But we need to underscore one thing: It takes grit and a serious amount of effort upfront.
Pro Tip: Some easy ways to start building residual income include selling a book, launching a course, or even starting a YouTube channel. Once it’s out there, it can keep earning money for you indefinitely.
Final Thoughts
In an ideal world, we’d all have at least several income streams flowing at once. But let’s be real—even the filthy rich often rely on just a few. The key is to find the ones that work best for you and double down on them rather than spreading yourself thin.
It’s just a matter of picking, choosing, and getting good at the ones you decide upon. With the right moves, your financial goals will begin looking a lot more achievable. Financial freedom has never been about overnight success. It’s about consistent effort and making smart choices.
