How to Create Multiple Streams of Income in Your 20s (8 Best Tips)

More than half of the population lives paycheck to paycheck, and it is not a good place to be because any emergency can throw you off balance. A high income potential helps you achieve financial freedom and have a safety net in case of unforeseen eventualities.

Have you ever wondered how the rich become rich? They learned the secret to creating multiple streams of income and not only relying on one source of revenue.

If you are tired of living paycheck to paycheck, you need to find ways to create multiple streams of income.  It is not surprising that the rich have diverse income streams because it helps them have a more stable financial future, and they are able to build and maintain their wealth.

In this article, we look at some of the ways to create multiple streams of income in your 20s so that you can live the life that you dream of and achieve success and financial freedom.

How Many Streams of Income Should You Have?

Most financial advisors share that it is wise to create multiple streams of income, with three being the least number and seven as the goal.

One should be the main source of income, and then the rest should be additional streams to build on.

It’s never wise to put all your eggs in one basket.

When you create multiple streams of income, it saves you from unforeseen financial constraints due to job loss, illness, or recession, helps you support your family’s needs, pay off loans, build massive wealth, and achieve financial freedom.

What are The 3 Most Common Income Streams?

Before you can create multiple streams of income, you need to understand the different types so that you can make long term financial goals. Here are the three main ones to consider:

• Active income: this is what you get from being employed or selling a service, for example, the wages, tips, commissions, bonuses and salaries you get in your job. Here, you exchange your time and energy for a paycheck, and if you don’t work, you don’t get paid.

• Portfolio income: this is what you get from investments such as royalties from books, music, or on platforms like YouTube, interest from savings, capital gains and dividends from stocks.

• Passive income: this is earned from business or investments that you don’t need to participate in actively. You build once and earn from it.  For example, rental income or getting paid from a business you invested in as a silent partner. This also includes getting royalties from online book sales on Amazon, earning from affiliate marketing, earning from a blog, and selling digital products that are automated.

How Do You Create Multiple Streams of Income in Your 20s?

For most people, the 20s is a starting ground. You are in college or just graduated and are trying to get a footing in the world.

At this time, most people look for part time jobs to increase their income or pay bills. However, it is possible to create multiple sources of income in your 20s without having to take multiple part time jobs.

The reason is many opportunities online will help you reach your goals faster.

What determines your success will be the time and resources that you have to generate income and invest. At this time, the starting capital is the main challenge because not many 20 year olds have the money to invest in rental property, so how do you go about it?

Let’s look at some of the best ways to create multiple streams of income in your 20s to help you get started.

8 Tips to Create Multiple Streams of Income in Your 20s

1. Get a paid job

Most people in their 20s have limited work experience, meaning a low income level. If you are just from college, it may be hard for most people to get a job right away.

Look out for internships or graduate trainee programs that most companies advertise. An internship will help you improve your skills and increase your chances of getting hired by companies after the end of your internship.

During this time, keep networking in your field and make yourself more competitive by learning more skills in your area of study or interest.

Update your resume regularly and seek high paying jobs in your field. Having an active income is the start of other ways to create multiple streams of income.

2. Cut off unnecessary expenses

Living beyond your means is a sure way to live paycheck to paycheck and be engulfed in debt. One of the first things to do is to reduce your expenses.

Do you really need a more expensive phone or cable subscription plan or that gym membership plan, yet you go to the gym once a month?

Some bills that you can decide to do away with are cable TV and subscription services such as Netflix. Check on electricity and other utility bills and see how to cut them down.

Another thing to check for is phone bills. Look at the costs and choose an alternate affordable bundle that has all the features that you need. Whenever possible, look for ways to save money rather than spend it on unnecessary things.

3. Save money in high yield accounts

Earning interest over savings is a good way to turn your active income into a wealth building machine.

Consider buying unit trusts or saving money in a high yielding account in a Sacco, buying mutual funds, stocks, or bonds and trusts. This helps your money gain more value over time.

This works best for a long term goal. If you start saving at 20, you’ll have a substantial amount in your 50s for retirement.

4. Become a freelancer

The gig economy has opened up so many opportunities. Most companies prefer to hire freelancers for project based contracts instead of hiring full time employees.

Check out online freelancing opportunities based on what you’ve studied for. For example, if you have a degree in accounting, you can look for clients online who need bookkeepers and freelance accountants. Or, if you are a teacher, you can do online tutoring.

Other freelancing options include copywriting, graphic design, data entry, article writing, video editing, social media management and web design.

Even if your degree is totally unrelated, you can quickly learn these skills online for free on YouTube or Alison.com and provide this service to your clients.

Pick one skill, learn everything you need to learn and create your portfolio. The advantage of being a freelancer is that you will have flexible hours and you can work for multiple clients.

Then, apply for jobs on freelancing platforms such as Upwork, Flex Jobs, Fiverr and Robert Half.

5. Start an online business

Once you have succeeded as a freelancer and have a few regular clients, you can advance to a more sustainable way to make money.

An online business is easy to start because you need minimal investment compared to a brick and mortar store, and it can help you have an additional income stream.

The best place to start is to turn your hobby into a profitable business and create multiple streams of income. You can turn your love for baking, make-up, travelling, and food into a business and sell products or services online.

Sell your products and services online and keep improving your content production to improve reach, visibility, and sales.

6. Start an Instagram theme page

Posting content on social media is also a good way to build passive income and create multiple streams of income in your 20s. If you love going to the gym, post your workouts and tips. If you love taking photos, display them on Instagram.

Show off your jewelry making or baking skills on Instagram and build your audience.

Once you have a following of 1000 or more, you can start to monetize through sponsorship posts or adding affiliate links on the link in the bio and earn if your viewers purchase through your link.

You can also become a full time content creator on other platforms like TikTok and Facebook and earn creator funds, sell products or do affiliate marketing.

7. Create digital assets

Earning money from royalties or sales from digital assets like eBooks, music, photography, articles, or video content is also a good way to diversify your portfolio and create multiple streams of income.

Consider massive production of content across platforms like Medium and YouTube to earn from them.

You can also start a podcast on your area of interest and use your social media following to market yourself. Once you build expertise in your field, create and sell online courses and programs on platforms such as Udemy or Teachable.

8. Invest in rental income

If you are lucky to get more active income in your work or freelancing, you can start investing in rental properties one at a time. Real estate is a long term investment that provides a steady passive income.

If you don’t have money to buy a house right away, you can rent apartments that allow the Airbnb model and build your income steadily.

Some people also buy through a mortgage, then rent out the property and use the rent to pay for the mortgage. That way, as the value of the house increases, they are able to build their equity.

FAQs

How can a 20 year old make money fast?

You can build your income fast in your 20s through freelancing, paid work, earning from your blog or YouTube, starting an online store and becoming an Airbnb host.

How can I make $100 a day passive income?

You can earn passive income from monetizing a blog or YouTube channel, selling eBooks or online courses, becoming an Airbnb host, or investing in real estate and stocks. These methods require initial investment in time and resources, but they can be passive after a while.

How can I grow money in my 20s?

Grow your earned income in your 20s to grow your income by buying stocks, building digital assets and investing in real estate.

How much money should a 25 year old have?

By 25 you should strive to have a steady source of income, at least 3 months of emergency funds and start investing in high yield savings account to start getting compounded interest.

Final Thoughts

When you create multiple streams of income in your 20s it provides you with a comfortable life and protects you from unforeseen situations.

Make a plan of your income goals, set an intention to increase your income sources, and commit to it with discipline and daily effort. I hope these eight tips to create multiple streams of income in your 20s will help you get started in your journey of building wealth.

If you are already past your 20s, don’t fret. You can always rebuild and reinvent your life at whatever age. Just start today.

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