Multiple Sources of Income

When it comes to business and investment, we look at the cash flow to see if the company can survive.  A couple of years back; I attended a seminar that encourages us to create multiple sources of income.   In reviewing my personal situation I realize that I already have that, but probably not the way that the presenter intended.

I thought I would share my thoughts with you.  For most of us as was in my case too, I think of only our full time job as the only source of income.   It is true that it probably makes up majority of our income but it is not the only one.

Most of us have savings in the bank.  This can be in normal savings or fixed deposit (or Certificate of Deposit).   These savings earn us interest.  This may not be much but it is still a source of income.

For those of us investing in shares, some of them pay dividend.  This is yet another source of income.

If we have credit card that gives cash back, the cash back is also a sort of income.  This is only counted if we do not spend more than what we would spend if we did not have the credit card in the first place.  Only thing is to use the card instead of cash but not buy more.

Some of the loyalty cards that we have may also give cash back.   This works if the shop providing the loyalty point is not more expensive or we do not need to go out of our way to spend more.

For those who bought house or apartments, we can rent them out.  This rental can be extra income provided the expenses do not exceed the rental income.  The expense could be service charges, government charges etc.    Alternative to get similar rent income without the hassle is to purchase REIT.

So there you have it, most of us have multiple sources of income already without realizing it.  The challenge however is to make other sources more than our primary job to become financially independent.