Creating Multiple Income Streams - the kids edition

A big part of the wealth game is limiting your liabilities and maximizing assets.

In other words, your goal is to have less going out and more coming in. It's the "more coming in" part that I'd like to talk about in this post. More coming in for you and more coming in for your kids.

One way to have "more coming in" is to get a raise at your job. And I do thoroughly recommend getting as many big fat raises as possible. For this post, rather than focusing on increasing one source of income, your salary, I'm talking about creating several or many streams of income.

Did you know that a typical self-made millionaire has anywhere between 3, 5, or more different income streams? Some bigger than others, of course. But that's akin to getting five paychecks. Five paychecks? Woohoo!

There are many kinds of income streams, and not all of them will make sense or even be feasible for your current situation. Start where you are, with what's doable now, and over time you'll get your financial snowball rolling.

Below is a list of income stream ideas. Choose one that makes sense for you and just get started. Then next, I'll outline how you can teach and encourage your kids to create multiple income streams of their own. 

First, let's jump right in with some Multiple Income Stream Ideas for Mom and Dad.

• Get a second job - maybe not a long-term option and not a passive stream. But you may need to take this first step to get some extra income to reinvest in other streams. You have to do what you have to do.
   
• Rental Income on Airbnb - not an option for everyone, and again, maybe not a long-term option, but if you own a home and have an in-law suite or even a spare bedroom, you can earn a few bucks on Airbnb. It probably won't make you rich, but it can be a great way to start earning a few extra bucks to reinvest into other income streams. How to get started.
   
• Start a Blog or YouTube channel - everyone is an expert on something, whether it's playing guitar, dishwasher repair, or refurbishing old zippo lighters. And with the old interweb connecting the entire planet, chances are someone out there wants some of your knowledge. You can monetize a blog or vlog in many ways, including ads, affiliate products, consulting and coaching, selling an information product, and more. Get started with this helpful guide.
   
• Information Products - an information product is just what it sounds like - your valuable expertise and information, package up into a digital book, a video course, or an audiobook. If you can create a simple e-book/video/digital download that solves a real problem people are struggling with, people will pay you for it. Think "How to Learn Acoustic Guitar," "How to Start a Thriving Backyard Garden for Beginners," or "How to Refurbish Antique Tools."
   
• Advertise on your car - True; this is a strange one. But it can be done and earn you a couple of bucks just for slapping an ad on your car.
   
• Index Fund - these popular funds can be a great way to develop wealth and build additional income streams. Learn about index funds here.
   
• Dividend Stocks - for the more experienced investor and those more comfortable with risk, dividend stocks can be a great way to go. Read more about dividends.
   
• Real Estate Investment Trusts - Also known as REITs, provide a way to get involved in the real estate game without the effort and skill required to actually manage properties. A REIT is a company that manages real estate. They're also not for the risk-averse or faint of heart and you must do your due diligence and find a company with a good track record that is run well. Read about REITs here.

Okay, but what about the children?

How do you teach your kids the virtues of having multiple income streams? There are a few ways to do it. Let's go through them one by one. 

• Teach Them with Your Actions - That's right. Your kids are going to learn by watching YOU do it. So, the first step is to make sure that you are building your wealth and growing your portfolio of income streams.
   
• Teach with Words - Leading by example is SO important, but it might not be obvious what you're doing in some cases. So, you also want to talk to them about it. Teach them about your various income streams and show them what you're doing and how you're doing it. Get them involved in the process and show them behind the scenes.
  • What do your investment accounts look like?
  • How did you pick your funds?
  • What other streams have you started?
  • How do you run your blog?

Show them what you're up to and what it's producing.

• Teach Them by Doing It With Them - Now, it's time to help them create their income streams. The first and most obvious one is getting a job. If they're old enough, encourage them to get a part-time job as their first income stream. This could be a paper route, a dishwashing job, or working at a summer camp. Whatever it is, there are many teachable moments to be gained by having them get a job.

Now, let's talk about a few ideas that your kiddos can use to start building their streams of income.

• Getting a J.O.B. - as we mentioned above, a good ole fashioned job should probably be one of your child's first sources of income. They can learn many life skills by taking on a job—a paper route, errand-kid for a printer, dishwasher, etc. Help your kids get and succeed at a job. It's incredible how many 20-somethings don't know the fundamentals of resumes, applications, interviewing, job etiquette, etc. Teach your kid these job skills when they're 14, and they'll be way ahead of the game.

• Chores and Household Tasks - You can hire your children to do chores around your house. There are many opportunities right at home for your child to learn skills, make some extra cash, and help take some stuff off your plate so you can focus on growing your income streams. There are several ways this can work. You could assign your child a set of recurring chores and responsibilities that they must complete each day, week, or month, and in return, they receive an agreed-upon allowance. Another way would be to offer one-off jobs (see above for interviewing opportunities). This makes sense when you have a non-recurring task that you'd still like to offload on the kiddos. I'm thinking things like shoveling snow, raking leaves, hauling mulch around the yard from the giant pile in your driveway, etc.
   
• Hire Your Child to Work In Your Business - This is one of the best options. Your kiddo can make some extra dosh, you get some help running one or more of your side hustles, and they can learn both the skills of the hired job and about starting and running the business itself. Your kiddo could be your social media manager; load your videos to your website or YouTube channel. They could answer customer emails, moderate comments on blog posts, or even handle phone calls from clients. Depending on their age and savviness, you could get them involved in your income streams, including online businesses, freelancing, investing, managing Air BnB properties, etc. The sky is the limit here.
   
• Odd Jobs Around the 'Hood - Chances are you've got a few neighbors looking to offload some of their undesirable tasks or buy themselves more time. Does your neighbor across the street need his leaves raked? How about Mrs. Miller two doors down? Maybe she needs help clearing out her attic. There is likely a treasure trove of opportunities from yard work to washing cars to pet sitting. Of course, you could arrange the work yourself by speaking with your neighbors and finding the opportunity. Even better is having your kids do it. There is nothing wrong with knocking on Mr. Smith's door and asking if he needs any work done around his house and then asking him what he thinks a fair price would be. Jeeze, you could imagine the life skills your kiddo will learn by going through this process? Have your child start by offering to do tasks she already knows how to do. You can help your child out by having them learn valuable household skills at home first. Then they can branch out and find their own customers. They could even create their own promotional flyer to hand out to the neighbors or relatives offering specific skills they can offer.
   
• YouTube Channel - your kids can get started in the creator game early. Building an audience on their own YouTube channel can be a great learning experience for your kids, with opportunities to learn about the technical requirements, scriptwriting, on-camera presence, choosing topics, learning about audience/market trends, etc. Topics could include anything from unboxing their favorite toys to playing video games, telling jokes, building with Legos, etc. There is no shortage of information about running a successful YouTube channel online. Once your child's channel starts growing, there are many ways to monetize it: advertising, affiliate links, sponsorships, etc. Important note: along with all the opportunities online, there is no shortage of charlatans and sketchy characters on the old interwebz. Be sure to keep close tabs on your child and teach them to be safe online.

There you have it. We've talked about managing your money, keeping your finger on your financial post, and teaching your kids the same in previous posts.

And now you have some ideas to maximize your assets by building additional income streams and teaching your kids to be financially savvy money managers and entrepreneurs. It's always been possible to create additional income. But, it's never been easier and more feasible than it is today. Get out there and get started today.

Additional Sources:

https://www.bankrate.com/investing/passive-income-ideas/ 

https://grow.acorns.com/how-self-made-millionaires-create-multiple-streams-of-income/