8 Streams of Income Anyone Can Start (Youtube Video)

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Hello everyone, a very quick video on the different income streams anyone can start today.

Many of us only have the one income source – our jobs, but as we have seen in the last few months, it’s never more paramount to diversify our income streams so you have others to fall back on.


Today’s video is on a very important topic in personal finance, and that is about building different streams of income.

Most people only have one source, that is their job. But as events this year have shown, it’s never more important to diversify your income streams so if one fails, you have others to fall back on, such as:

Earned Income 

This is the most basic. It’s where you go to a job and earn a paycheck. Like I said, most people only have this one form of income, yours truly included.

Interest Income 

This is income from lending money. For example if you let someone borrow $500 from you and you charge interest for it, you’re earning income from that interest.

A common way to earn this interest is via a peer-to-peer lending website like Ratesetter or SocietyOne.

You can earn some decent returns on your cash, I think Ratesetter is offering around 6% p.a. but of course, beware of the risks – main one being if the borrower doesn’t pay you back!

Profit Income 

This is profit from the sale of a product, for example let’s say you buy a nice pair of brand name shoes from a garage sale for $50 and you flip it online on Gumtree or Ebay for $100. The $50 you make is profit income.

I’ve been doing this for a few years now with all sorts of random items, from old video games, to scented candles

Dividend Income 

When a company makes a profit, they can either re-invest that money back in or pay it out to its shareholders, this payout is known as dividends.

The big 4 banks in Aus, Telstra, BHP and RIO have traditionally been the cornerstone of many retiree portfolios because they payout decent dividend income to live off. Whether they continue to do so, given COVID-19, is another story.

I actually don’t earn any cash from my dividend income, all my dividends from my stocks are reinvested to buy more stocks under a dividend reinvestment plan or DRP. Using dividends to buy more stocks hopefully means I’ll earn more dividends and hence more to reinvest and so on and so forth.

Rental Income

This income is from renting out an investment property. They say 30% of all housing in Australia is for investment purposes and there are over 2m landlords. I am one of them.

Capital Gains

This is when assets increase in value over time and you sell to realize a profit. For example you buy 1,000 shares of ABC for $10 and the share price rises to $20 and you sell. You have made capital gains of $10,000.

Passive Income 

This is income where you continue to be paid after the work is done. For example if you refer someone to a program and the program continues to pay you for that referral every month.

A way you could do this is via affiliate marketing through a blog, for every visitor you refer to an “affiliate”, that affiliate pays you accordingly.

Or think about becoming an Amazon affiliate, where you create a list of Amazon products you believe in, link that list on your socials, and if someone buys using your link – Amazon pays you a commission.

Royalty Income 

This is income from others using your idea or work. For example if you write a book on Amazon and it becomes a success, you will receive royalties each time that book gets sold. Or you could be a talented musician and list your songs on itunes, every download can earn you royalties.

In summary, I just wanted to open our eyes to the fact there are many ways to make money apart from our jobs, don’t just rely on the one source of income. Because it can very easily disappear.

How many streams do you have? Let me know in the comments below!

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  • Mr FDU

    Ever since we heard Gary Vee talk about EBay and selling stuff online we’ve totally taken advantage. I had some old N64 games and YuGiOh cards lying around that I sold and made around $300 in a month and Mrs FDU is now selling her dresses on Ebay! Such a nice little supplemental income! Not as good as passive income, but it’ll do for now :) How many streams of income are you aiming for?

    • The Frugal Samurai

      Gary V! Haha Mr Hustler himself, he’s a great mentor to follow. N64 games, wow… I still play Mario Kart and Goldeneye from time to time “shakes head at how old I am”. I love how the guys usually sell one-off items, but the ladies have recurring sales. Mrs FDU sounds like MrsFrugalSamurai, the ol “I’ll buy this now so I can sell it later” kind of attitude! Funnily enough, I was saying this to someone else, but the typical millionaire has 4-7 streams of income, I think this is a sweet spot to be, too many and not enough time for all! You guys?

      • Mr FDU

        Yes! I’m totally with you, we only kept Pokémon Stadium and Mario Kart – just in case we feel like playing with some nostalgia.

        We’re aiming for 7 much like yourself. But we want them diversified in different sectors and eventually have them all be passive. We’ve come across selling stock video footage recently which is a great one to have if you already have camera footage! Fully passive!

          • Mr FDU

            It’s through an agency called Blackbox! The money is great when they sell. It’s said that you should have a minimum of 1000 clips up, and doing that and giving them metadata takes a lot of time. But sometimes a single clip for me sells for like $120. So our goal is to have 2000 clips up and make around $3000 a year passively through that.

  • Emma Vinson

    Hello Frugal Samurai,
    Thank you for this post! You listed quite many potential streams of income. This is inspiring!
    I currently have 4 sources of revenues. As you and Mr FDU, I am also reselling things to create income out of them. I am also getting some dividend incomes. I do not (not yet) have the courage that you have to “give up” on them and reinvest them.
    I do not own a car, but I think that if I was that’s something that I would try to rent. I guess that is part of the rental income. One could also think about investing in a powerful computer and doing some cryptocurrency mining. If I am not wrong, this is nowadays way easier than what it used to be.
    Another stream of income that I am using is online surveys and online videos. There are many websites that offer to cashback the survey answers against coupons or even cash on PayPal, and for the videos, sometimes it is really just about letting the video play.
    My last stream of incomes is my scholarship, but one has to be a student for that. So, it is only temporary.
    Does anyone have further income streams?
    I think when it comes to income streams, our limit is our creativity!

    • The Frugal Samurai

      Whoa Emma, sounds like I should be learning from you! 4 sources is pretty darn good, and you have listed some very unique income streams which I’ve never thought of (too true, the limit is our creativity). I do know of someone who was crypto-mining, they did fantastically well although it sounded very niche and over my head! Nice one with the online surveys and videos as well, those are very easy and simple to do. And you are a student as well! How do you find the time to do all of these???

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