Multiple income sources

[expat]

Following on from another thread, what would you rate as the five best multiple income sources a regular Joe should aim to create? I know there'd be heaps of but's, if's and maybe's, but I'd be curious to know your suggestions.

[RickM]

Sell something.

Aquire inexpensive product or provide a unique service that people really want. What that is is only limited by your resourcefulness.

I was once asked, "You can spend the same amount of time selling a pair of shoes as selling a building. Which would you rather sell?"

[GrindingGears]

1) Work a job that pays the bills.
2) Do something you like and are good at.
3) Do something you like and are good at.
4) Do something you like and are good at.
5) Gamble.

Granted, I'm 24 straight out of college, part time job, and don't know $hit. But, that list of five is my plan.

[BlueSkyJaunte]

I'm an engineer, wife's an engineer. We do OK.

Now she wants kids, and since I refuse to have our kids raised by strangers, one of us will stop working....:rolleyes;

[RickM]

Originally posted by BlueSkyJaunte
I'm an engineer, wife's an engineer. We do OK.

Now she wants kids, and since I refuse to have our kids raised by strangers, one of us will stop working....:rolleyes;

Welcome to the club

[fintstone]

If you have patience...rental real estate is great.

[motion]

If I was a woman, I'd get married/divorced every two years. Since I'm a guy, I stay single. I figure that counts as multiple streams of income (that I otherwise would not have).

[Zeke]

Originally posted by RickM



I was once asked, "You can spend the same amount of time selling a pair of shoes as selling a building. Which would you rather sell?"

Not even close. RE agents spend hours and sizable sums marketing property. A good shoe salesperson can make high 5-figures. Some in dept store selling actaully make well into 6 figs, but they tend to be in furnature or couture.

Regular job with bennies.
Rental property
Side business selling, Ebay is perfect.
Investments
Savings

I like Richard's take on this. Marry a rich woman and divorce her. Make sure you gather the dirt on her first.

[MotoSook]

I'm an engineer and the my sig-other is in Insurance...at least one of us should be employed at anytime. But even as an engineer, I've tried to keep my bag of tricks as broad as possible. I've worked with guys who have been in the same job for the last 20+ years, and when that hammer of mergers and acquisition hits..guess who got fired and who stayed? I started my professional career when the fat companies where just starting to trim the perks and benefits and degrading loyalties, so I learned quickly that I couldn't count on the company. I changed jobs every 2-3 years and picked up a variety of skills while keeping sharp on some of the key ones. I'm on my third (could be fourth really) job since graduating from college, and I'm making more money than if I had stayed at my first company for 20+ years. So keep mobile and be prepared to move. Every move should come with a 10-20% pay raise, not likely to come with your annual merit raise at the company you are at!

If all else fails, I'm not opposed to manual labor, but maintaining your "stock" in any company should help prevent that. Instead of working at the multiply stream...I like to think I'm doing it on the job. Is that confusing? Companies will pay to train you, but who said you have to choose training that is specific to your job....think about applying it to a different job?

[RickM]

Originally posted by Zeke
Not even close. RE agents spend hours and sizable sums marketing property. A good shoe salesperson can make high 5-figures. Some in dept store selling actaully make well into 6 figs, but they tend to be in furnature or couture.

This is a statement the is meant to be exagerated. I'll also say of the Commercial real estate folks I know none have anything to worry about from a Shoe Salesperson....wether from Neidless Marcup or Nordstroms.

The point is to work/sell smart.

I built a Website which sells Home and Garden products. While there was quite a bit of business you were quickly overcome with customer inquiries, complaints, vendor problems...you name it. My business partner did not understand that spending 8 hours to solve a customer problem while realizing a $5 profit AND on a regular, if not daily, basis was not working smart. We were getting "nickled and dimed" to death. I sold my share and he struggles to this day.

Regarding real estate rental, I've seen people lose their shirts. Not common but it's not as foolproof as many make it out to be. It also requires credit/capitol/cash that some don't have access to.

[RickM]

Originally posted by Souk
I changed jobs every 2-3 years and picked up a variety of skills while keeping sharp on some of the key ones. I'm on my third (could be fourth really) job since graduating from college, and I'm making more money than if I had stayed at my first company for 20+ years. So keep mobile and be prepared to move. Every move should come with a 10-20% pay raise, not likely to come with your annual merit raise at the company you are at!

While this is true it can and will work against you at some point. I have passed over many job candidates that job hop. When I hire I'm not planning on laying them off. Therefore I want a loyal, commited employee not some one that will most likely leave at a predictable interval.

[island911]

Rick, do you hire engineers? The thing about engineering is very few companies have a steady, continuous development cycle. Engineering is very project dependent.

When I was making hiring decisions, the "lifers" coming out of say Boeing were at hte bottom of the list. Guys like Souk, quick to adapt, where at the top.

Most engineers that "float" are ussually not so much opportunist chasing $, but smart guys chasing a challange. YMMV

[nostatic]

Originally posted by island911

Most engineers that "float"...

wow, you had interesting job screening techniques. Is that along the lines of the good old (or ye olde) witch test?

I'm getting ready to interview candidates for a couple of positions. I wonder if I can book the pool...

[MotoSook]

True Rick, and that's where the statement that increasing ones "stock" in a company comes into play. If I don't plan to put into a company and only take away from it with a plan to leave after a certain date...I would be jobless right now. I would like to think that I bring something to a company when they hire me. I give what I know to keep myself in a job and at the same time I should be learning something. There should be mutual increasing of "stock."

At some point when I am no longer growing nor challenged, am I adding anything to the company? Is the company putting any value in me? At that point the company and I have to rethink my position in the company. Hopefully, in that situation, the company is no longer growing or I'm no longer growing. That's a bad situation. If the company is no longer growing and what I can do is not helping, it's time for me to leave. If the company is prospering and I'm not changing to meet new challenges, it's time for the company to cut me. When growth is mutual...times are good, anyone who doesn't feel that the job is the right job to stay in..SHOULD leave. It might have seemed that I was advocating job hoping, but not so...it's a little deeper than that. It is important to not be blindly loyal to a company...even the best manager has to cover his own arse when the time comes...doesn't matter if he eats at your house every weekend..his family is more important top him than your family..

[MotoSook]

Originally posted by island911
Rick, do you hire engineers? The thing about engineering is very few companies have a steady, continuous development cycle. Engineering is very project dependent.

When I was making hiring decisions, the "lifers" coming out of say Boeing were at hte bottom of the list. Guys like Souk, quick to adapt, where at the top.

Most engineers that "float" are ussually not so much opportunist chasing $, but smart guys chasing a challange. YMMV

And this was happening while I was typing a reply to Rick

[turbo6bar]

1) rental real estate (long-term)
2) sales on Ebay (from junk to treasure)
3) bought a compact utility tractor to work on rental properties and offer tractor work for hire. $60/hr rate

Figure out what people want. Research it. How can you offer the best combination of service, product and price? My latest idea: H4 installation kits (relays, wiring, connectors, all top-shelf components for a painless installation). Using economy of scale, I can sell the kit for hopefully less than one would spend buying all the components individually. I'm still doing research, and I'm working contacts to find the absolute best prices on bulk components. I won't get rich, but it pays for Porsche parts, and that's my goal.

New ventures, however small, are challenging. It makes my brain work, and that's fun. No one can tell you the ideal mutiple streams of income. Ideal for you isn't for me. I am not outgoing, but I think really well, and I work like a mule. You won't find me at a trade show pawning widgets, but you will find me on a job site doing smart grunt work (work smart, not hard).
jürgen

[JTO]

Guys,
The streams we currently have and are working on:
1) Real estate (distressed property) flipping
2) Real estate rentals
3) Consulting (me)
4) Continuing education business for teachers (wife)
5) Looking for more.
Troy

[Owain]

Some great ideas here. I'm just starting to think about these types of things and recenty started selling things on eBay. Not a great return yet I'm still ramping up . Just a question directed at the people with rental property:

Do you find any advantage to commercial rentals as opposed to residential? I would think there might be a little less headache with commercial but I was hoping to get some opinions from people who've been there (if anyone here has or had both).

Thanks,

[RickM]

Owain, I can tell you from hearing experiences from both camps.

The money to be made in Commercial leasing can be very good. However, you must be connected as most leasees will go to a broker to find a property. Depending on where you live, leasing/renting building space is typically on or off. If it's hot then it's expensive from the acquisition side. You will most likely need big bucks to get in.

Residential should be less expensive. If I were to get into it now I'd go for the condo or townhouse rental. The less to maintain the better.

Either way you have to choose your tenants carefully.

Others here have more experience and I'm sure they'll comment.

[campbellcj]

What do you guys think about buying or investing in small indy businesses (with -strong- biz plans) OR perhaps even franchises?

I am personally not big on the rental property idea as being a part-time landlord, having to deal with flakey SoCal tenants etc. is not my idea of a great way to spend free time after the day job. And if you hire a professional property mgmt company you are obviously dipping into your cash flow, which is probably already just barely enough to cover the mortgage and expenses.