The Multiple Sources of earnings (9 sources)
We should never stop creating ways and means to produce extra income which could be a potential major source income stream.
1. Earnings from Revised Budget
As we have learned previously from my blog. Saving is like a source of income. Money save can add up to the income that we have in cash. If we stop buying unnecessary up to date gadgets, changing of appliances and some furniture, clothes, pocketbooks, exotic food, restaurants, fast food and vices such as occasional gambling, pubs, drinking a lot of alcohol, your hobbies of collecting says different hunting firearms, joining social clubs, golf clubs. Money saved is money earned.
Imagine cutting your budget from social club membership which could amount from 1000USD to 30 USD, depending on which club you are joining in. Buying items online because they looked cute and interesting is not what we mean by wise spending. Saving them all instead create a capital for the next type of earnings. Let us see them all here below.
2. Earnings from employment
This is the previous 9-5 set up or anything to do with working for a company. This is work when we receive a monthly salary or every fortnight. This is where your education or qualification create a job for you. The skills, training, talent, and effort are being paid by an employer.
Work as a teacher, engineer, nurses, doctors, lawyers, and other professions are our source of earnings from employment. Being the manager, supervisor, foreman, director, officer, team leader, and consultant are the positions we are into particular employment.
Most of us are under this category. We earn this type of income for 40 years, say from 20 to 60 years old but that is only the point of reference. 40 years of work and at least in many countries, you will be retired. Retirement, termination, redundancy are terms used for employees and obsolete to tools, machines, equipment, and the like.
3. Earnings from a profit
This is simply a profited scheme. Many people have found livelihood on traveling from different places searching for something exotic, unique, and in-demand in their own country. My friend would buy gold and dates from the Middle East and sell them in his own country for a higher profit. Get is “cheap” and sell it with overhead and profit margin. Other ever sources of this kind of earnings are bags, shoes and clothing lines, food, such as the native and delicacy. Skincare and beauty products are also big demand. Learning real estate brokerage is important for people who have friends willing to buy condominiums, bungalows, resorts, and plots. Or combinations like house and lot, island and resort. Maybe selling bikes, of used cars and slightly used gadgets such as cell phones and cameras, computers, and so on.
Some of my friends would give the items for those who may want the product but has no capability to pay in cash, so they arrange a 2 payment scheme with a slightly higher price. Most of the time, the capital is already received on the first payment and the second one is already the profit.
4. Earnings from the business
This is a traditional form of business. Anything you do with establishing office spaces or shops are considered in this type of business. This is where you also deal with suppliers on a regular basis, hire one or two or more employees to meet the requirement of running this type of business lucratively. Inventory, and accounting system, the pricing system is all set up which we call system. Most SMEs are in this category including Grocery stores, restaurants, coffee shops, food take away.
5. Earnings from MLM (Multi-Level Marketing)
This is a pyramid scheme where most are but a scam. Some legit MLM business could give you some handsome earnings. To ensure you are joining a legit MLM, you should do the following, check the Trade registration, if they have a license from the government trade and commerce agency, have a long history of operation, the owners and top management are known for their integrity and they are offering high-quality products.
Learn their marketing plan and where are their products are coming from and do they have a smooth supply system? Do they give your commission on time and the ways of earnings are well-defined and well-executed. The system must be impeccable so as to be worry-free on things like product availability, and the steady flow of earnings coming from selling products and membership campaigns.
MLM is the best way to get rich faster provided you have the right MLM organization, marketing plan, ways to earn, and quality products. Incentives in this kind of endeavor are highly attractive.
6. Earnings from rentals
When you get money, you could create a rental business from renting your own properties such as apartment, your own house, instead of being empty indefinitely, better let it be rented to become an asset rather than a liability. Any real estate properties, vehicles, equipment that you turn to rental income are under this category.
Once upon a time a friend of mine is recording some TV series daily and rent the VHS recording to all those avid fans of the TV program. Renting the satellite signal or frequency of the TV network. Because before there was no one. This is called passive income, whether you work or not you will get monthly rents from your properties. Included for rentals are chalets in a resort. Vacation houses, office space, shops. My friend creating a building that consists only of around 24 shops. It was proven a lucrative project. It was in demand. People have lined up for renting any vacated shops anytime. The tenants, however, were not going to vacate the shops anytime soon. They paid yearly rent in cash.
7. Earnings from royalty
This is something we create such as musical composition, book authorship, training, and presentation authorship. They are products or propriety products. They can be used by anyone provided the royalty should be given to the author or creator of the product.
Anything that is created used by others, that by using it a percentage from its use, this is called royalty.
My brother who has created and authored books used in colleges have earned a percentage for each book sold as part of the condition of its sale. In the same way, composers have earned a lot of money by lending their songs to the singers and other interested parties who wanted to use the songs in one way or another.
8. Earning from a franchise
Many of the businesses that started from a humble beginning is now a behemoth in the industry. Most of them I know are from the food industry. Such as fast food brands we know too well what they are.
Some of them have years of history in the business until one person would come along, refurbish the brand and reorganize the system, create a product that has come to be loved by patrons, and introduce the business into franchising. This helps the business to earn another income and expand the brand to many places. This is one way of enhancing earnings through the franchise system.
9. Earning from interest
When you join as part-owner of business say being a silent partner. That is you only put your share of capital to start a business. When the business start earning, dividends will be given to you as part of the company. This dividend is permanently part of your source of income. The dividends are accompanied by a company’s reports on performance, earnings, and future plans. The report is basically to inform you but could not have a part in decision-making. This is where the choice of the President, the CEO could be taken by the vote of the part-owner like you.
This is often paid every 4 months of the year. However, the payment could be done at other times as well. Dividends usually come from a corporation. This is cash pays to its shareholders or stockholders.
This is a passive income from the stock market, shares. This is given mostly to the so-called blue chips, they are companies that have a very high positive performance result producing interest for shareholders and stockholders.
When you buy shares from business organizations or companies then you become a shareholder. It means you are a part-owner of that company albeit with a very small percentage. For example, Company A has 200 million shares to buy if you buy 1500 company shares then you will be one of the owners of Company A.