Tag: income streams

Step 35: Income stream 3: Interest Income

~ Inge Natalie Hol ~ Leave a comment
Step 35 of the 100 steps mission to financial independence: Income stream 3: Interest Income
Step 35: Income stream 3: Interest Income

So we have thought about our first income stream, which was a wage coming from a paid job, as well as the possibilities of a second income stream in the form of profit income. For most people either of these might be their main and only income stream and they might have never thought of other sources of income. Yet there are five more possibilities and even though that doesn’t mean you need to pursue them all, it is always good to at least find out more..

Let’s have a closer look at a third income stream: interest income from money lent out. Money lending and borrowing isn’t usually free, as the lender runs a risk (they might never see their money again), so the person who borrows money is required to pay interest on the loan in return, to make lending money more attractive.

Continue reading “Step 35: Income stream 3: Interest Income” →

Step 34: Income stream 2: Profit Income

~ Inge Natalie Hol ~ 1 Comment
Step 34 of the 100 steps mission to financial independence: Income stream 2: Profit Income
Step 34: Income stream 2: Profit Income

Where step 33 described the features, (dis)advantages, and possibilities for change of an earned income, we are now going to look at profit income. A profit income is the money you get when you have a company (which can be anything from an Etsy shop where you sell handmade things to a multinational company) and are able to sell your products or services above the cost price thereby taking (some of) the profits as earnings.

Many people dream about having their own company, and although this can indeed be a lucrative project, being an entrepreneur also requires a lot of hard work, and often at least a few years before a company starts making a profit. It furthermore involves a lot of new skills, quite a bit of risk and a lot of perseverance, so the life of an entrepreneur isn’t always as rosy and making a profit income isn’t always as straight forward as it might seem. (You can take my work for this, I have some experience..). Continue reading “Step 34: Income stream 2: Profit Income” →

Step 33: Income stream 1: Earned Income

~ Inge Natalie Hol ~ 2 Comments
Step 33 of the 100 steps mission to financial independence: Income Stream 1: Earned Income
Step 33: Income Stream 1: Earned Income

In step 32 we looked at a quick overview of the 7 different income streams one can build, and in these next 7 steps we are going to look at each income stream in turn, to analyze possibilities of (further) developing each possible source of income. You shouldn’t however feel that you need to take action in all 7 areas, instead the main purpose is to make you aware of each income source so you can decide what works best for you.

Let’s start with the first income stream, which is your earned income. Most people get this from working for somebody else, although if you are an entrepreneur you might also receive a regular wage from your own company if you are taking a salary.

A key feature of earned income is generally that you are paid for your time, be that time you spend in the office, working from home, at conferences, at clients’ offices or wherever your job requires you to be. Generally speaking the more you work, the more you get paid: if you go from part-time to fulltime you get paid more, if you work extra hours you get paid more and by taking on a management role which might require more time (as well as extra responsibilities, experience and whatever else), you also get paid more. Continue reading “Step 33: Income stream 1: Earned Income” →

Step 32: Multiple income streams

~ Inge Natalie Hol ~ 1 Comment
Step 32 of the 100 steps mission to financial independence: Multiple Income Streams
Step 32 of the 100 steps mission: Multiple Income Streams

Up until now we have made great progress in the areas of our savings, debt and reducing our spending in order to increase our cashflow on our way to financial independence by putting extra money towards a secure financial future. We are now going to move away from these areas for a little while and start with a new theme as there is another way to increase your cash flow: by increasing your income.

The vast majority of people see income as the money that they get from their job, and we have already touched upon income increases such as a bonus or pay rise in previous steps as a way to increase your money. Whilst income from a job is normally not only a very decent provider of money as well as a financially secure way to guarantee a steady and satisfactory income, it doesn’t have to be your only way of bringing in money. Continue reading “Step 32: Multiple income streams” →