7 Ways to Earn Extra Income

An Income stream as the amount of money that keeps coming in or produced from an investment, or by selling products or services. Or a flow of money that comes from business, investment, or employment. 

Today, let's talk about the 7 most common income streams that can help you generate extra cash flow. 

Yes, you can earn more by juggling 2 or 3 jobs. But, you won’t be living life by working non-stop. If you continue to push without managing it right, you’ll tire yourself. Furthermore, it’s not smart or healthy, and you will lose valuable time– for yourself, your family, and for leisure and fun.

To sum it up working more than one job is already tiring and time-consuming. You’re not actually thinking smart or diversifying your income. Adding more of this isn’t efficient. As a popular proverb goes, “Do not put all your eggs in one basket.” 

In order to earn extra, you need to have multiple income streams. If done right it will work out to your advantage. But before we discuss the 7 common income streams, let’s first talk about the 2 types of Income streams: Active and Passive. 

2 Types of Income Streams

1. Active Income. Defined by Investopedia.com as an income stream where you are earning from performing a task related to your job or career. It mostly takes up your time as your involvement is an integral part of it.
2. Passive Income. According to corporatefinanceinstitute.com it is any money earned in a manner that does not require too much effort. Basically, it is when you are earning even if you are not working full time for it. A type of extra income that you earn while pursuing your primary job, and does not require your direct involvement. Check out my Passive Income Source here!

Here's the seven ways to earn extra through multiple income streams.

1. Earned Income

This is your main source of income or your primary job. Where you trade your time and skills for money. This is where the majority of us started. However, many did not go past earned income. 

Solely depending on earned income is constricting as it is mostly enough to survive. Everything, of course, has an exception as there are jobs that actually pay exceptionally well. 

Under the category of earned income are the following: Salaries, Bonuses, Commissions, and Tips.

2. Profit Income

This type of income is also called Business Income. In profit, income-you either provide service or make and sell a product more than they actually cost to earn a profit. 

For instance, opening a retail store and selling products, offering professional services, and charging for your time. 

3. Dividend Income

Another source of income that comes from investing in stocks and owning a share in a company is dividend income. 

It’s often a long-term investment to companies that offer higher dividends and stock sharing. 

So, how does it work? 

A dividend is an amount of money paid to you annually. How much you will receive will be based on the number of stocks you own in a company and the dividend rate the company is giving. The more stocks you own, the more dividends you will receive. 

You can Save in MP2 Savings Program. Pag-IBIG Fund sets aside at least seventy percent (70%) of its annual net income and credits it proportionately to its members’ Pag-IBIG Savings as dividends. This means that the more one has saved, the higher dividends that member shall earn.

Pag-IBIG Fund invests at least 70% of its investible funds in housing finance, as required by its Charter. It also invests in government securities and corporate bonds.

The Pag-IBIG MP2 Savings, being a voluntary program, earns a higher dividend rate than the mandatory Pag-IBIG Regular Savings.

HERE ARE THE MP2 SAVINGS DIVIDEND RATES OVER THE PAST 11 YEARS.

Year and MP2 Savings Dividend Rate:

2021 = 6.00%

2020 = 6.12%

2019 = 7.23%

2018 = 7.41%

2017 = 8.11%

2016 = 7.43%

2015 = 5.34%

2014 = 4.69%

2013 = 4.58%

2012 = 4.67%

2011 = 4.63%

4. Rental Income

Rental income is a source of income that comes from owning property or something that you rent out. 

If you buy a house, condominium unit, or a commercial building and lease them out, the money you earn from them is called rental income. Of course, such acquisition requires a substantial initial investment but is still a great source of additional income. 

5. Capital Gain Income

This is the money you earn when you sell a capital asset. It can be in a form of stocks, a piece of art, or real estate property such as a parcel of Land. 

One example I can site for capital gain income is memorial lots. This type of real estate investment is easy and hassle-free with Low Capital Requirement, Low Risk, and High Return. 

Moreover, it is affordable and offers a lucrative return. This type of investment has become recently popular among young professionals, millennials, and even Filipino Expat who are starting up in investing and multiplying their income. 

6. Interest Income

This income comes from lending out your money at an Interest. This could mean a CD, P2P lending, real estate crowdfunding, funding fix-and-flip debt deals, or simply money in a savings account. 

An example of this is Time Deposit Savings where you deposit a certain amount of money, keep it in the bank, and withdraw it after a certain period at a higher interest rate than your standard savings account. 

You can open a Digital Bank Account like DISKARTECH to earn higher interest. 

Ang DiskarTech ay ang first and only Taglish financial super app! Madali nang maabot ang #BuhayGinhawa.

All-in-one na online banking services ang hatid ng DiskarTech. Sa iisang mobile app hindi na lang pwede magbayad ng bills, magpadala ng pera, at magpa-load. Pwede na ding magbukas ng savings account, mag-loan at mag-apply ng insurance!

Ito ang tamang diskarte.

I-download mo lang ang App sa: https://diskartech.ph/ at i-verify mo lang ang account mo gamit ang code ko na'to: ABSX8247.

Kailangang dumiskarte?

Kaya ng super app natin ‘yan!

• SAVINGS - Ipon Goals? Create your savings account gamit ang isang VALID ID.
• WITHDRAW/DEPOSIT - Di'na kailangan sa branch, real-time pa ang transaction.
• E-LOAD - Load-an na ang sarili. May ePINS ding available.
• BILLS PAYMENT - 'Wag magpahuli sa due date, pweding bayaran 'yan dito.
• FUND TRANSFER - Safe na ipadala ang pera kahit saan pa 'yan.
• QR SCAN - Yung square na barcode? May Scanner para dyan.
• GOVERNMENT PAYMENT - Magbayad bago pumunta para iwas-pila na.
• TELEMEDICINE - Checkup, gamot at iba pa deretso na sa bahay mo.
• INCOME GENERATION - Mag-refere ng users at kumita up to 30K sa verified account.
• DISKARTECH LITE - Qualified sa ayuda? Pwede kaming payout partner.
• INSURANCE - For as low as P20 insured kana.

7. Royalty Income

Finally, we have royalty income or licensing. It’s where you create a product, idea, or process, let someone use it and in return, you make a small fee. 

An example is Burger Joints or Fast Food Companies that franchise their store. They, as the franchisor, earn royalty income from their franchise. 

I hope this article has been helpful to you. You may have also realized that we are giving focus on our earned income and have not explored other income streams that can also help you earn extra and build your net worth. 

I suggest you spend time and learn more on how you can earn capital gains by investing in Home-Based Business, as I have found this Passive Income stream beneficial to me not just in the present but in the years to come.