Setting Goals For A Second Income Stream
In my article regarding my Four-Pronged Financial Strategy, I talk about the four facets of generating wealth in my life. A second income stream is my favorite facet to work towards. More than a high performing portfolio. More than finding an undervalued piece of real estate. Why? Because a second income stream would have the largest financial impact in my life, and I would assume, in yours as well.
Imagine passively generating several hundred dollars a month or more in solid cash flow. It could help you eliminate debt in your life at a rapid pace, it could be steroids for your savings goal, or it could simply help fuel your lifestyle. It’s your choice what you do with the money. But it’s undeniable how impacting it would be. Let’s look at how to set some realistic goals and how to move forward reaching them.
A Flexible Approach
It is important as you aim to implement a second income stream to be flexible. Give something a shot and if nothing materializes than throw in the towel on it and move on. Because this is your second income stream, it is not as crucial as your active income stream (your main career). If something doesn’t work, move on to another idea.
My Current Attempt
For me, this blog is my current attempt at a second income stream. In my first full month of being online, I made a whopping $30 through advertisements. While $30 is hardly enough to get my heart rate up, I am happy with the start as the $30 proves that I can make money online. The blog is young with minimal popularity, but it is growing.
My goal is to ramp up this income stream to $500 a month by the end of 2008. In order to do this, I am committed to providing strong content for readers and growing the readership. Furthermore, the monetization of the blog will become more of a focus as the traffic begins to increase on its own. Numerous monetization techniques will be implemented to try to maximize the revenue generated by the blog including various advertising techniques, affiliate programs and more.
I will continue to keep you updated on my progress towards building this website as an income stream and updating you with my successes, failures, and challenges encountered along the way.
Your Action Steps
It is my goal that sharing my experiences along this journey towards a second income stream will help encourage you to get started towards your own second income stream. Furthermore, my successes and failures will help guide you along the path.
I hope that if I succeed in my goals that it will also help you succeed in your goals by providing a detailed and transparent example. If you’re reading this article, then you already have an interest in building this wealth driver in your life. If you have the commitment, then it’s only a matter of time until you succeed.
Begin researching potential businesses with minimal capital requirements. Naturally, online businesses have minimal barriers to entry because of the ease and low cost of creating an online presence. If you have a strong niche and enjoy writing, a blog might be a good opportunity for you. If you want to try to make money online but don’t really enjoy writing that much, research affiliate marketing. You can earn commissions by creating straight forward landing pages that refer people to various products and services. Many people make a ton of money doing this. Lastly, maybe you want to sell a niche product or service online. There are many ways to setup an online e-store and have just about everything done automatically including billing, accounting, and shipping.
As you research potential income stream ideas, focus more on the ability to run the business passively. A business that can be run automatically is better than a business that generates more money. Remember, a passive income stream will allow you to create other passive income streams! As a side note, a blog is not as passive as you think. It takes a great deal of work.
If you haven’t read My Four-Pronged Financial Strategy, read that first to understand how a second income stream fits into an entire financial picture. Also, look for more articles on this blog regarding creating a second income stream including specific steps to getting your first business up and running.
- Challenges Of Starting a Business In Your 20s
- Why A Second Income Stream Should Be Your Top Priority
- Four Prong Financial Strategy Update: Real Estate