Hi Impatient Investors

Add more sources of income to your life. We live in turbulent times and many of us only have one leg to stand on (a job). Instead of a one legged stool, let’s change to a three legged stool. So instead of one source of income let’s try for three. However, most articles mention that millionaires have seven sources of income. Seven sources! Yet most people only have one, just one source of income through their job. To add sources of income could make your life easier and make you that much closer to retirement.

There are two additional sources of income that have already been mentioned on this site, even though, we don’t necessarily consider them as income: Premium income and dividend income.

Premium Income

Only thing that is required to attain premium income is 100 shares of stock or the cash equivalent of 100 shares of stock. Most stocks and ETFs have options, and 100 shares of stocks unlocks premium income from selling options. Selling cash secured puts requires the cash equivalent of 100 shares of stock as collateral, and most stocks have options expiring every week, meaning weekly income. On the flip side, selling covered calls requires 100 shares of stock and you can sell call options and receive premium income.

Dividend Income

Only thing required for receiving dividends is to invest in companies that pay dividends because not all stocks have dividends. Some companies decide to reinvest their profits but for the companies that pay dividends. Dividends are cash payments given to shareholders on a regular basis, normally quarterly or monthly. Dividend yields range from close to 0 to above 10%, but the higher the yield is not necessarily better.

Even more Sources of Income

We only mentioned 2 sources of income in depth but there are way more ways to add income to your life. Anything that adds extra money in your life on a recurring basis is income. The types of income mentioned above requires no physical work. But there are many ways to gain income. The most obvious source of income is a job, probably the most universal but let’s briefly discuss others. Business income from sales, rental income from real estate, interest income from savings or high yield savings/bonds, capital gains from stock sales and royalty from intellectual property.

Let’s add to your sources of income! Which one of these seem the most feasible?