If your main source of income is your fixed job, and you are looking for other sources that enable you to earn money and build wealth, here are the most important sources of income that can be adopted now.
Let's face it, nobody wants to earn more money and grow their income. The more money you have, the more amenities you can afford for yourself and the more money you can save for future investment purposes.
Earning more money isn't just about developing the skills needed to keep your full-time job. Although you should always strive to develop your skills and knowledge.
Each type of income is unique in its own way and the way you start earning them is also unique. Some of these incomes take a long time to generate, but they can make you more money than others in the long run as well. Recently, many people have started to generate extra income based on their hobbies and what they like to do. You can also develop your hobbies into a source of good extra income.
If you want to increase your income and earn more money, keep reading the article to find out everything you need to know about the available sources of income that will help you build and grow your wealth.[1]
?What are the most important sources of income available to me
Income earned from working in a job:
Income earned from employment is by far the most common type of income. Most people have a job and earn this kind of income. You set aside daily hours to go to work and do the tasks assigned to you and then come home at the end of the day.
The average person works about 40 hours per week, which equates to about 2,000 hours of work per year.
In general, you sell your time and skills for an hourly rate when you get a job. Salaries can vary, and whether they are high or medium, they represent the same type of income i.e. earned income.
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There are also different types of wages involved in this type of income. Some people are paid by the hour, others are paid at equal wages each week and are expected to work the required amount of time to make up that (full-time) salary.
A lot of payroll jobs tend to be more of a supervisory or managerial position. Part of this is because while you may only work 40 hours a week, some administrators may need to work 60 hours one week and 35 the next. By making a salaried employee accountable for his hours, he gets some flexibility in terms of when he works and how he accomplishes his tasks and responsibilities.
Either way, whether you get paid for the hours you work or get a monthly salary, that money is earned income. You exchange your time by the hour for a set amount of pay. The problem with earned income is that it is only scalable to a certain limited extent. Not all other sources of income are like this and you may really want to adopt some of them.
Profit income earned from buying and selling products:
Profit income is one of the oldest sources of income that humans have adopted since ancient times to make money, as sales are happening all around you now. The ideal way to monetize a profit is to buy something of value at a certain price and then sell it at a higher price to someone who can use it.
This is the kind of income that all retail stores make and is what they all depend on. Stores generate this profit income by purchasing products directly from the manufacturer or supplier and then adding a percentage to their price and selling them to customers.
You can also get this type of income by starting by buying small quantities of used products locally, then increasing the asking price a bit and finding buyers. eBay is one of the largest auction sites where people can earn a full-time wage by buying local products and selling them all over the world.
The possibilities of increasing the income from the profit are not limited and are always subject to rise and growth. Having a scalable income stream is one of the best attributes any income stream can provide.
Scalability is about buying and selling more and more products. This increases your overall earnings and, in turn, your income. You no longer have to just buy and sell to the locals in your area as you can now build an online store with Bluehost and run it from day one!
With a little bit of marketing and building some connections, you can make some real money quickly and efficiently. You can walk around your local area and visit some garage shops to buy good items for less than $5 and then resell those items for $7 and make a profit of, say, $2! $2 may not seem like much, but as you will start selling more and more goods, the profit income will also accumulate and go up.
Bluehost is the leading website building platform on the internet. Bluehost now works with WordPress and is the best website builder out there. WordPress powers over 30% of the internet and that's a huge amount of content which goes to show how great and efficient their platform is.
Residual Income That Continues Even After Employment Ends:
Residual income is a great type of income that you can work on developing and then continue to receive without working or putting in any effort to earn it.
It may take some time to build this type of income, but once you do what is necessary to build it, then you will start receiving returns that do not require any effort from you, meaning that you will continue to receive money even after you have completed the basic work in the first place. Once you build it
With that income, it will continue to pay you for the construction effort over long periods of time in a way that will not require you to do any work.
Some of the businesses and products you can create and develop to build this type of income include affiliate marketing, creating a blog, and using social media to sell products and services. These are just examples, and there is an endless variety of businesses from which you can build residual income. All in all, creating a blog is one of the most effective ways to build this type of income.
The blog allows you the freedom to choose the time to work on it that fits with your other commitments, such as your full-time job, for example. It also allows you to choose topics that relate to your own interests and preferences, making it fun to work on. When you do this, you will attract like-minded people to your blog which will increase your page traffic and you can then start running paid display ads and do some affiliate marketing to start and build your residual income.
Imagine that you now start spending some time every day to create and develop your own blog, only to start reaping huge profits and returns after a few months from work you did previously and finished. It's very real and possible to build a solid, ongoing residual income with your own website that only requires some effort in the beginning. Blogging often generates very good residual income which makes it one of the best sources of income that you can consider.
Most payment systems work in this way, workers may have completed their tasks and work, but they get paid after the end of the work. Businesses are usually supposed to pay within 30 days, but monetizing a blog is a process that can take longer depending on the business.
Real estate rental income:
Rental income is one of the most versatile incomes you can have with high returns. You can invest your money in single family homes, duplexes/triples, apartments, condos, shopping malls, and any other type of real estate.
With rental income, you can take advantage of using leverage to increase your returns. Leverage refers to "other people's money". This money can be obtained from a bank or from one of your business partners.
There are a lot of stock market companies that use investors' money to buy, develop and make money from income generating properties.
By being able to use other people's money like bank money, you will be able to buy a property for rent without having to own the full purchase price as is the case with stocks.
You can buy a house to rent for $100,000 and basically all you need to own is 20% ($20,000) of that amount. With the right ownership and management on your end, you can achieve returns of 25% on the property overall.
If you have rental properties with a 25% return, you will double your invested capital in just 4 years!
Imagine making $20,000 every 4 years from real estate and all you need are some good frugal skills. By acquiring a few properties, you will now be able to earn big returns just by collecting rent and managing the property only on the side.
Dividend income:
Dividend income is a common source of income. The concept of dividends refers to the process of the company paying part of the income and profit it has achieved during the year to the shareholders. Companies often distribute dividends to preferred shareholders, who have invested in the company's preferred shares. Some companies may pay dividends even to ordinary shareholders, but this is rarely the case and is not the norm.
So, investing in the stock market and especially in blue-chip stocks is the most common way people can start receiving dividend payments and building an income from them.
All you have to do is go to work very normally, save some money for investments, and then invest that saving money in dividend-paying stocks to start receiving monthly, quarterly or annual dividend payments that will form a continuous income for you without your need to make any effort.
Investing in the stock market is definitely not the only way that you will be able to receive profits. If you own or build your own company, you can pay yourself dividends from your company as well.
As mentioned above, if you create your own blog or online store with Bluehost, then you can integrate that website with a company that you will create and end up paying yourself as income.
There are a lot of investors who focus on the dividend when they buy stocks. Some companies pay more than others and the amounts are expressed in percentages called the dividend yield.
Different companies provide different dividend yields based on how much of their earnings they want to pay their investors. Some companies pay a dividend yield of 2%, and others may pay as much as 13%.
For example, if you had $100,000 invested in "XYZ" stock that pays a 5% dividend yield, you would receive 5% of your invested capital in dividends per year. That is, you will receive $ 5,000 annually in dividend payments.
With this in mind, you can see how investing in dividend stocks can be a great way to make and grow more income. Investing in these stocks can be a great strategy for your retirement years as you will have some money to invest and if you get a dividend payment every year you will never have to touch your initial investment.[2]
Capital Gains Income from Sale of Assets Estimated:
Capital gains income is the income that is earned through the sale of a valued asset. This may sound a bit complicated, but it isn't.
A valued asset is simply an asset or something of value that has increased in value at some point
what.
This can include anything from a company, car, building, or land. There are a lot of assets that know their value in appreciation and increase in value over time and this can bring you real income. Capital gains income is generated through the sale of that asset which means that you will not receive the capital gains income that you would receive through the sale of the asset nor will it constitute continuing income for you.
Additionally, there are different laws regarding taxation of capital gains income which can vary depending on where or what country you live in. In some countries you can claim capital gains on your taxes and end up paying taxes only on 50% of the total assessed value. This can lead to savings of thousands of dollars if you sell an asset and get an estimated income of $1,000,000. You can then claim these as capital gains and tax only $500,000. Paying tax on only half of your income can be a really cool thing to consider!
Selling valued assets is not a quick way to get money and generate income, but it can be a profitable way to top up your accounts when the time comes.
You can start today by building a business or buying some land or buildings that over time could be worth more than you paid for and benefit from capital gains.
Income from rights to use your products and patents:
This royalty-based income stream is a great way to earn passive income. And you can earn this kind of income by letting someone else sell your products.
The most common equity income products can include things like; Books, games, puzzles, courses and even patents. Remember the little clip they put on your finger to get your heart rate in the hospital when you go to the hospital? Someone invented it, and with every person who uses their invention, they get millions and millions of dollars in royalty income every year.
You can write a book and sell the rights to produce it to producers. In return, you will receive royalties from the sales of this book. You can also make a game to help people relax or a game for kids. You could even create a course to teach people the skills you've developed over the years.
There are many possibilities you can consider for royalty income that not many people know about or count on.
You can also go ahead and start hiring affiliate marketing services to advertise and promote your product in order to generate sales. The marketers then get the commission and you get the income through their marketing campaigns.
?Where can you start
Generating extra income doesn't have to be difficult nor does it have to be complicated. With simple and continuous steps, you can consider the mentioned sources of income to start diversifying your income, developing your wealth, and obtaining your desired financial freedom. You can use our other articles on types and sources of income to gain a deeper and more comprehensive understanding of the topic.
All of the income streams included in this article are solid ones and can provide you with some good extra income over the years. It is important to study your investment options well and make informed choices about them before committing to anything. If you are looking to spend a little bit to diversify and grow your income, you can start your own blog or start your own business now.
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