You mean to tell me I can have more than one stream of income?
This was the question I was asking myself after listening to a podcast called “Everyday is Saturday” by Sam Crowley. It was a mindset new to me after completing 13 years of service in the Air Force where you only had one task, which was the Mission. The thought that I could now start multiple ventures or take on multiple jobs began to open up my mind to the limitless possibilities to different forms of income. I was ecstatic to say the least but bummed to just be figuring this out now, at age 37. But then the thought came to me that better 37 than 47 or older. I felt reborn in a way, that I just opened a door to a new planet.
But are you not just talking about working two or more part time jobs?
Well, you could look at it like that, but that is too simplistic, and old school thinking. There are many different ways to bring in extra income, and the point of this post is to highlight some of those ways. So instead of thinking that MSOI only means that I work part time here and part time there, think I work full time here and I have systems or assets that bring in income for me as well. The overarching principle is “Work smarter, not harder”.
Build your Financial IQ now if you haven’t already.
Just a quick bit of advice before I go on. Start reading books on personal finance and money in general. This alone will start increasing your Financial IQ and get you headed on the right path from the get go. This is something that I wish I’d done before college. There is a book by Dave Ramsey called “Total Money Makeover” that is a good starter book and he gives out very concise and actionable “hacks” to getting control of your personal finances. Another book that changed my normal way of thinking about working and finances, in general, was “Rich Dad, Poor Dad” by Robert Kiyosaki. In it he explains the difference between liabilities and assets, and how most people confuse the two meanings concerning items they own like a house or car. Also he writes about having money work FOR you versus how most people think which is to get a job to work for money. This rolls into my next bullet.
Active versus Passive Income
Very simple definition of Active Income is your typical 9-5 job, where you go to work, receive a paycheck for what your were actively doing, ie. flying a plane, working in a cubicle, bagging groceries, etc.
Passive income is where you have set up a system that brings in cash flow 24/7 that requires various degrees of maintenance or upkeep to keep the money coming in, somewhat predictably. This could be from an online business( a muse), through real estate, royalties from books, media etc, or the vending machine you own. The list can go on and on with different ideas for passive income.
Most people today work just on the former, but lately myself I find that a combination of the two, Active and Passive Income streams, is a very smart and secure way to go.
So, ok, good. I felt like I had to get that out in the air for those reading that have never heard of Passive Income and/or MSOI. If you have questions about this topic or would like to learn more, please let me know, but I plan to write about my own findings as I move forward, in this post.
Please leave a comment if you have more than one stream of income, and let me know what they are and how you got them started. Thanks!