PauloAbad
Having more than one income stream is always great advice, especially for our kababayans working hard abroad. For one thing, it can guarantee that you’ll have money to sustain yourself and your loved ones in case of unexpected emergencies like unemployment and hospitalization. And it can also help you build your wealth. So to make things easy for you, below are several streams of income you should consider having.
Earned Income
Basically, this is the money you get from your salary. If you’ve just started on your path to financial freedom, then it’s standard to have this. You see, you need a regular source of income not only to meet your basic needs, but also to have seed money which you could use to build your wealth.
Profit Income
Meanwhile, profit income comes from money you earn by selling something. This is usually the cash flow earned and maintained by entrepreneurs, whether from small businesses or startup companies. By having your own business or company, you’ll be able to enjoy this type of income.
Interest Income
Any money earned through percentages is called interest income. The best examples for this include the interest you get from your bank account as well as the money you get from investing in stocks or bonds with interest rates. Unlike the first two, interest income is passive, meaning that it will come to you even if you’re not working for it.
Dividend Income
Interest income isn’t the only type of passive cash flow you can enjoy from stocks. Many stocks offer dividends, money that’s regularly paid by a company to its shareholders (people who own stocks). Usually, this money is derived from the company’s profits, so you need to make sure you invest in the right stocks to enjoy its fruits.
Rental Income
But just in case you’re not yet ready to invest in the stock market, you can always invest your money in a property so you can rent it out. Rental income is a simple yet effective way to earn passive income. Not only does it need minimal maintenance (i.e., home repairs, utilities, etc.), but your property’s value would also increase in time. By the time you sell your property, it would probably be more expensive than when you bought it.
Start Building Your Wealth
The different types of incomes mentioned above can help global Pinoys like you financially provide for yourself and your family at home, as well as help you build formidable financial life. So if you’re still relying on just your salary, now’s the time to start rethinking your financial game.