Yesterday’s step to financial independence was about growing your income. While you may ask for a raise at work, remember the numbers we ran on day 3. If I want my money to generate $1,000 per month until I die (at 95, mind you), I need $750,000 in the bank. Or I need to buy a flat, and rent it for $1,000. It will surely cost less than $750,000.
Where I am getting is that your day job will never make you rich. Earning more may get you there sooner, but it will never be soon enough while you are employed.
So it’s time to find additional sources of income, and as many as possible. Imagine you need those $1,000 a month to be financially independent. And your blog is generating $50 per month.
How cool is that, you only need to find $950 per month now!
Sources of income can come from a blog, a website, affiliate sales, renting a room in your home, renting an investment property, other investments like stocks and shares, selling stuff on Ebay, and so on.
The more sources you have, the less the probability that they will all dry up at once. When I left my day job, I was teaching about 5 kids, and writing for three websites. Then the recession hit and tutoring wasn’t in parents’ budget anymore. Lucky for me I still had the writing income.
When one of the websites asked me to stop writing, again because of budget cuts, it was not the end of the world. I was renting my place and getting income from there. I even have less conventional investments like live cattle and coconut trees!
And who knows, even this blog might bring money one day. The point is, try to have as many streams of income as you can. Not only will you reach financial independence faster, you will also be less vulnerable should one stream dry out.