Skip to Content

How to Create Multiple Streams of Income (Active & Passive!)

This article is for anyone interested in creating multiple streams of income both active and passive income. Today, I have 10 income streams and I’ll be sharing what these multiple income streams are, which are active or passive income, and how you can do the same.

What Are Multiple Income Streams?

If you’re new to this, having multiple streams of income just means that you have income from several different sources.

For example, if you have your normal 9-5 job and Etsy store that you manage, then you have two different ways of making money; therefore, you have multiple streams of income. 

But Why Should You Have Multiple Income Streams?

The most important reason to have multiple streams of income is if one source of income stops or is eliminated you can rely on another source. There’s always a safety net to catch you if anything were to go awry. 

This is the beauty of having multiple streams of income.

Wealth & Wanderlust

Hi, I’m Vanessa! I’m an American Expat in Germany and I help people become location and financially independent on Wander Onwards! Here’s how I’ve created multiple income streams to support my family and life abroad. 

My 10 Streams of Income

Currently, 4 out of 10 of the income streams are things that I can passively manage, and the other 6 are more active forms of income generation. 

Active Income

  • My full-time 9-5
  • Social Media
  • Leading Travel Excursions
  • Workshops
  • Content Creation/Videography
  • Writing for Publications 

Passive Income

  • Etsy Store (Passive)
  • Master Classes (Passive)
  • Blog & Affiliate Links (Passive)
  • Investment Dividends (Passive)

The reason I’ve set up so many streams of income is to hedge myself against recessions and any financial setbacks that might happen.

If I get laid off, I can increase my effort with my active streams of income to make up for that lost income. My passive income streams are very low touch so they make me money in my sleep 24/7.

I can rest in peace knowing that whatever might happen, I’m ready to provide for my family and myself with my multiple streams of income.

I was able to build this from anywhere while I pursued my normal 9-5 in different countries around the world

Understanding Active vs Passive Income

So what’s the difference between active and passive income? It really comes down to how much effort and time each income stream requires. 

What is Passive Income?

Passive income is money you earn that requires little to no daily effort to maintain.

A few passive income ideas include: writing a blog, selling on Etsy, dropshipping, selling online or downloadable products, stock dividends, property rental income, etc.

If you use affiliate marketing as a form of passive income, you can actually monetize your blog without having to do a ton of work.

A great site to check out if you want to get started is Travel Payouts. When you sign up, you get access to an amazing portal full of different travel-related affiliate programs and their percentages in one handy portal.

What Is Active Income?

Active Income is money received in exchange for performing a service. Active income is always high-touch and requires regular effort to be put in. 

Active income includes a 9-5 job, hourly wages, tips, commission, and any other income from which there is active participation.

Most people rely on active income in order to fund their lifestyle. 

how to build multiple income streams, how to create passive income streams, active income streams

How to Create Multiple Streams of Income for Yourself

Building multiple income streams may seem like a daunting goal to get started with, but the key is to start with one task at a time.

Instead of splitting your time across several different potential income streams at once, pick one stream and focus on making that profitable before moving on to something else.

Here’s how you can get started.

learn how to budget, smash debt, invest & more in  weeks!

1. Find Your Passion

There is no sense in pursuing something you have no interest in.

If your only motivation is money, the process will be tedious and you’ll appear disingenuous to potential customers because there’s nothing MORE obvious than money/clout chasing. 

Ask yourself:

  • What am I passionate about? What are the hobbies that I happily do for free already? What do I genuinely enjoy doing?
  • How can I monetize my hobbies and passions?
  • Is this a service or a product?

It’s my greatest privilege to help people make money and move abroad through digital products (like my ‘Move Abroad’ Master Class) and educational resources on personal finance.

Because I’m so passionate about these two topics, it’s easy to stay inspired and push forward year after year. Now you need to find your passion!

Upskill on Coursera with my Recommended Courses!

2. Understand Your Customer Base

Do you want to start a calligraphy business? You’re not limited to selling to customers that want to use your fonts or handmade goods.

You can also help other aspiring calligraphers start a business or service!

There are so many different ways to launch a business and have multiple offerings. 

Consider these questions:

  • Am I selling directly to my customers (B2C)? Or am I focusing on corporate and business-to-business services (B2B)?
  • Where do my customers live? What type of income do they have (high, low, etc)? What does their family unit look like? Married? Single? With or without kids?
  • What are the pain-points that my customers face regularly? How does my product or service help that?

Once you understand who your customers are and how you can make their life easier, you’ll be able to create products or services that truly create impact.

In my niche, I focus on financial resources for American expats abroad. For that reason, I provide helpful American expat tax articles, content on doing a master’s degree abroad, and more!

3. Take Your Business Online

Having an online business, product, or service is the best way to protect your income against economic stress.

Whether there’s a global pandemic or not, online business will continue to thrive against any odds because there is a never-ending supply of potential customers that you can reach.

In comparison, if you run a brick and mortar shop that resides in a physical location, you are limited to customers in the surrounding vicinity and there are also serious overhead costs to consider. 

4. Build a Basic Offering

Before you pour your life’s savings into something, be sure you test a basic offering or MVP (minimal viable product) to see if customers are even interested in this product or service!

When building an MVP, the goal is to use as little money and resources as possible to create an offering that makes money. 

Forget the website. Ignore the logo. What can you build with as little energy as possible that customers would be willing to pay for? 

Ways to build an MVP:

  • Create an online course on Teachable (free membership) and sell on social media (also free). 
  • Create a digital budget tool on Etsy and reach customers for free by ensuring your Etsy SEO is super effective. 
  • Launch a cooking blog, use free hosting from WordPress, and install Google Ads to see if you can make passive income from ad revenue. 

All of these ideas can be done with minimal investment and this should 100% be your first focus before logos, branding, and building a website.

4. Test & Learn

Even with my multiple income streams, I constantly test and learn to improve each offering.

I want to move faster and with fewer touchpoints, so I focus on creating scalable solutions that I can manage easily with my 9-5 job. 

I dial my effort levels up and down depending on my mood, motivation, and availability.

If I’m traveling, I’ll dial down the effort I put into my active income streams so I can relax and enjoy myself.

During the height of the pandemic, I put in 16 hours a day – every day – for WEEKS running workshops, building products, and creating content because I was restless. 

The point of creating multiple income streams is to give you freedom and flexibility. Some days I crush it, other days I’m chilling in my PJs for hours at a time.

The point is, it’s up to me. 

Daily Tips on Instagram

Want to receive daily tips on how to build multiple income streams? Then definitely join me on Instagram!

It’s a fantastic way to get direct access to me as I answer every single DM and comment. 

wander onwards instagram account

Read More Expat Money Tips:


Friday 21st of April 2023

Diversification is an important principle of investing because it helps to reduce the risk of losing money. By investing your money in a variety of investments, you spread your risk across different asset classes, industries, and geographies.