7StreamsOfIncome Canada IncomeStreamIdeas IncomeStreams Rhianna

I’ve always been a big believer in having multiple income streams in order to accumulate wealth and to build financial security.

The problem is that it’s not the income streams that accumulate the wealth, it’s the person.

You could have 50 different income streams but if you are not managing the money properly your dreams of being a millionaire will never happen.

The key to investing your earned income is to live a frugal life and take the money you save or utilize your skills and invest in an income stream that will yield returns.
How Many Income Streams Should I have?
Ideally, have as many income streams as you can handle but 7 seems to be the magic number for many millionaires.

Personally, I just do what makes me happy and follow my own path.

Below I will chat about what income streams I’ve used over the years and what we currently use to earn income to increase our net worth.

I will also skim the surface of some of the most popular income streams being used today.
Build Wealth Early With Mulitple Streams Of Income
Dear Mr.CBB,

I’m just starting out with a new job after graduating from University and am now beginning to pay back my student loans.

In the meantime, I have rent to pay and everyday living expenses such as food, partial utilities, insurance and so on.

Although I earn a decent starting income I want to start working on adding various income streams.

The reason for this is because I feel it is a smart way to have back-up cash flow besides an emergency savings fund. 

With so many people getting laid off in Canada it’s never a good idea to just rely on one source of income.  

How many income streams should I have and which yield the best results?



Toronto, Ontario.
Building Income Streams Takes Time, Money and Effort
Hi Chris,

What a great question and very smart of you to consider incorporating multiple streams of income.

Right off the hop, I will say that building multiple streams of income takes time. 

There are multiple types of income streams many of which you can do from home or using your own skills.

Take what you graduated from and see if you can turn it into a side business.

You could start a blog or a YouTube Channel teaching people what they want to learn.

The opportunities for income streams are endless but you need to find your niche.
Celebrities Building Income Streams Even celebrities accept endorsements and create other income streams to keep the money flow constant.
Take Justin Bieber for instance with his new line of Drew House clothes or Rhianna with her Fenty beauty line.

I think just about every celebrity has a perfume or cologne they’ve created as an extra income stream.

Try not to forget the multiple homes they buy and sell along with other business ventures.

It sounds a bit absurd when they already are some of the richest celebrities in the world but this is why they are.
Taking Risks On Extra Income Streams
Sometimes we have to get out of that comfort zone of just earning enough money to survive.

That’s essentially what most people do because they would rather be home than at work.

Earned income streams are one of the easiest but also where many people end their income-earning journey.
Anyone Can Build Income Streams
The great thing about building income streams is that you don’t have to be rich to do it.

When I was young  I had a job as a paperboy and the money I earned went into the bank.

That earned income stream was to pay for a car or part of my education when I went to University.

My parents did not make me save the money but they encouraged it.
Buying and Selling for Profit
In my teens, I was a big music fanatic and would go to second-hand shops with my parents.

It was then I would find some pretty good deals on vinyl, CDs and even cassette tapes that I knew I could sell for profit.

Most of my buyers came from the little village we lived in as not all of my friends were able to go shopping as I did.

We had buy and sell boards where I would make a list of the music I had for sale and post my phone number.

Most of the boards were at local churches or at the community center up the road from our house.

It was a nice profit income that I made from selling my music collection and kick-start into the real estate world.
Keep Investing Your Wealth
When I turned 19 I bought my first flat (apartment) and later sold it with capital gains or a price increase since I had purchased it. 

I was able to take the money from the sale of my flat and bought a house where I rented a room to help pay my mortgage.

This was a source of rental income which was part of my extra income stream building process.

Most of it was experimenting and with experience, I learned what I liked and what I didn’t.

Becoming a landlord takes a certain type of person to deal with the pressures of tenants and issues.

My parents owned a few houses up until recently which were fully paid off by renting them over the years.

This is where I got the idea to earn rental income however when I moved to Canada I sold the house.

Oddly, then I became a renter, but not for too long.
Ways To Accumulate Wealth
These days our income streams come from earned income, passive income, interest income, royalty income, capital gains income, dividend income, rental income, and profit income.

Keep in mind there are many forms of income streams but I’m only going to talk about some of the more common ones.

Passive income is one of the easiest ways income streams next to earned income as it’s getting continually paid for work that is already done.
Earned Income- This is income you accumulate from your day/night job or the net income on your paycheque. Interest Income- This is a form of passive income where you earn interest such as chequing or savings accounts. Also, consider if you lend money to someone for business investments or other reasons and you charge them interest on the money. Royalty Income- These are income streams from people using your property to generate income, copyrights, patents, and trademarks. Also, natural resources or franchises are a source of royalty income. Capital Gains Income- When you buy a house for $300,000 and sell it for $600,000 you have capital gains of $300,000. Another example is when you sell investments or stocks with gains. Dividend Income- Earning income from investments. When you buy shares in a company they will distribute company earnings to their shareholders which is you. Canadian Blogger Mark at My Own Advisor who is my blogger friend and dividend hero for all of the best tips.
Thanks in part to some recent dividend raises (thanks Royal Bank), I’m forecasting we might earn close to $19,200 by the end of this calendar year (December 2019) from our tax-free and tax-friendly account (TFSAs and non-registered respectively) as long as the companies we own continue to pay dividends at the rates they do.
Rental Income- When you purchase property and rent it out to someone for rent. This monthly payment goes towards your mortgage which helps you accumulate wealth. Profit Income- When you buy something and sell it for more money such as the music I would buy as a child. Business Income- This is where you own a business and earn income from providing a service. This blog, for example, is a business where I earn extra income. You can also earn money from various other social media platforms such a YouTube, Instagram and Facebook. You can work from home making and selling products or providing services such as making cakes, cookies or building kids’ toys. Cash Income Streams– Using your skills to earn cash money on the side such as fixing vehicles, lawn maintenance, dog walking, companionship, online surveys, etc.  We earned cash for the first 3 years of owning our home by participating in a homestay program that was tax-free from the Canadian government. This extra income stream went towards paying off our mortgage in 5 years. What Are Our Income Streams?
We naturally are a frugal family since we grew up in not-so-wealthy families and wanted to secure a financial future with less stress.

Over the years we’ve both dabbled in different income streams but have settled on a few that earn us extra money that we can put towards our retirement savings.

This is how we build our wealth:
Earned Income Business Income Cash Income Profit Income Investing Income Interest Income Explaining Our Income Streams
Eventually, we will have capital gains on our property but we don’t fully realize that in our net worth statement.

Since we still live in the property we don’t see this as an income stream until we sell it and see where we go from there.

Our earned income is sending me off to work every day so I can bring home the bacon and then more work at home.

The good thing is that the work I do on this blog is scheduled which has made life far easier for us as a family.

Creating this blog in 2012 began as a hobby but has since flourished into a business that brings in a steady 5 figure income stream.

Interest income from our bank accounts isn’t much to brag about but it’s money we didn’t have in the first place.

Profit income is part our of buying and selling higher gig from shopping at second-hand stores and reselling online.

Investing in our retirement and insurance type investments allows us to create an income stream in our future and our son’s future.

Our cash income stream isn’t so high but it’s money we didn’t have for doing simple things such as online surveys or local focus groups.

We also make online purchases regularly from Amazon Canada and other Canadian retailers and earn cashback through Rakuten.

Nielsen Home Scan is another source of income where we grocery shop and scan our receipts when we get home for rewards such as gift cards. 

All the extra income streams add up to money we didn’t have so we invest it right back in to continue building wealth.

Discussion: How many sources of income do you have? Drop me a comment below as I’d love to read your feedback on this topic.
Net Worth Losses and Gains
August 2019

What happened to our money in August?

Well, most of our cash went into the bathroom renovation costs the past few months.

Even though we looked around for deals and bought large expensive items on no tax days or took advantage of other deals it still cost enough that it had an effect on the amount of money we spent for the month.

On the bright side considering how much it would have cost to have a contractor come in compared to me doing the work it was worth every dollar.

The other reason our Net Worth went down is the market didn’t perform very well after the inverted bonds scare.

The markets took a sharp nosedive and then a subsequent rebound, but we made nothing on the investments.

However, we did regain our investments back to almost the same amount they were worth, just missed out on any gains that would have occurred if the markets hadn’t gone into panic mode.
Understanding Net Worth
What Does Individual Net Worth Mean?

Net Worth is a snapshot of your financial health sort of like a picture or debt to net assets.

In simple terms, it’s a total of the value of your assets minus your liabilities.

We credit the growth of our net worth due to patience, perseverance, using a monthly budget and not giving up.

Your numbers may go up and down but don’t let the numbers scare you rather understand why and move on.

If you would like to use our budget I offer a FREE downloadable budget which I created and that you can use at home just like we do.

I don’t charge for it because I want you to save money not spend more!

There are tonnes of other free resources at Canadian Budget Binder to help you build your net worth.
Calculate Your net worth

Do you know how to calculate your own Net Worth?

We like to calculate our net worth every month so we know if we are still on track.

Some people calculate it yearly or quarterly but it’s up to you and how informed you want to stay.

Net Worth is only an estimate and not everyone uses the same type of figures to tally it up.

Some of you may not include vehicles like we do or leave out assets inside the home as we have.

You might be that person that believes that your house should be excluded.

It depends on what you want to calculate or what you can sell today and make money on for tomorrow.

Figuring out net worth is fairly easy as long as you know your personal numbers or monthly finances which means you need to do your homework.

Net Worth is simply adding up all your assets (what you own) then taking away your liabilities (what you owe) which will give you a net worth number.

Understanding your net worth will help you determine if you are on track meeting or beating your personal financial goals.

It doesn’t get any easier than that.
Determining Net Worth
How to Determine Net Worth?

Net Worth = Assets – Liabilities

Why not go ahead and calculate your own using our Free Money saving Tool Net worth Calculator (Canadian Budget Binder 2012)
Financial Numbers
When budgeting anything is possible, we are proof of that although we still have a long way to go in our journey.

These are our numbers and our goals, not a means of comparison towards your own goals to others’ target goals.

We don’t care how much money others make or if they have a high net worth or if it is lower than ours as it’s not a competition.

I hope our experiences will help guide you along your financial path working towards debt freedom.

Not everyone has the same path in life.

Some of you may have had to start over like I did or go to school a second time and now have OSAP loans to pay back.

Others may have divorced, lost money in the stock market or other investments, suffered job loss, fell ill or injured on the job and so on but you can’t let that stop you from achieving your financial goals.

Some of you may have been given trust funds, paid-for homes, paid educations or perks in life that give you a financial kick-start and that’s OK too.
Earn It, Save It, Invest It, Build It
Remember what I said, “It’s not about how much money you make, it’s how you save it”.

The only reason people accumulate wealth is that they know how to save or invest it wisely even if they did inherit money or win the lottery.

The smallest improvements should mean big strides in working towards reaching your goals.

Sometimes we have to fail in order to learn and we’ve all been there. 

Money can be an evil force for some people especially those who have a negative attitude towards their own financial situation.

I urge you to be optimistic and little by little with determination you too should see improvements if you want that to happen.
Canadian Budget Binder Net Worth Updates 2019
Click the links below to read our net worth updates for the year.
December 2018 -(1.66%) January 2019 (+2.37) February and March 2019 (+2.15%) April 2019 (+2.63%) May 2019 (-0.79%) June 2019 (+0.87%) July 2019 (+0.56%)
That’s all for this month’s net worth update but please check-in at the middle of October 2019 to see how we made out in September 2019 with our financial portfolio.


The post How Many Income Streams Should I Have? : Net Worth Update August 2019 (-0.03%) appeared first on Canadian Budget Binder.
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