Author Topic: Do most MMM'ers have multiple streams of income?  (Read 6822 times)

EconDiva

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Do most MMM'ers have multiple streams of income?
« on: February 16, 2016, 06:45:07 AM »
I have come to a conclusion:

Just relying on my day job isn't going to get me to retirement quick enough.  Yes, I am working on cutting things one by one (eating out less, splurging less, less/cheaper travel, and just recently put in the cutoff date for my cable with Comcast for March 1st [yay!]).

I know I've seen a thread about side hustles I think, and I'm sure many MMMer's have probably been successful at real estate as an additional means of investing and building their stash (arebelspy?)...but this is just dawning on me that my job alone is not going to cut it.  I have a couple of friends (or friends of friends) who have side businesses and/or invest in real estate but I don't know that their focus is earlier retirement actually.

I did a search but didn't see another thread like this unless I missed it...so I wanted to ask if other MMMers came to this conclusion after joining MMM?  What did you do about it?  I realize maybe I'm not working hard enough on scaling back but I am working on it nonetheless; I am just thinking I should be working smarter about how to increase my income quicker and not just relying on my job alone?

webguy

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Re: Do most MMM'ers have multiple streams of income?
« Reply #1 on: February 16, 2016, 09:21:48 AM »
Absolutely. I'm of the opinion that the majority of people should have several streams of income to diversify and reduce risk, along with increasing wealth faster. I run a business as my main source of income, but also occasionally freelance on the side, have some affiliate income from a website I built, get referral commission from people I refer clients to, along with about $15k/year in dividends from my investment portfolio. It feels good to know that if your main source of income goes kaput then you have income coming in from other sources.

I'm a red panda

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Re: Do most MMM'ers have multiple streams of income?
« Reply #2 on: February 16, 2016, 09:26:50 AM »
In my current job, I am not allowed to hold other positions.  Since we decided to get out of real estate investing, this is my only income.  My husband does a small amount of freelance work (that I hooked him up with from my last job...) but it only brings about $1,000 a year.

If my main source of income goes caput, I would have to find another job (or be a 'kept' woman... we could afford that too).  We have enough savings that I have a strong cushion to work with if I'm not working.  The last time I was laid off I made more in freelance income than I did in regular income, however, I prefer a full time job. I was working way too many hours and had no work/life balance to keep that up. But I did what I had to do, because I didn't know when the freelance work might dry up, and when I might actually find a job. 
« Last Edit: February 16, 2016, 10:04:21 AM by iowajes »

MonkeyJenga

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Re: Do most MMM'ers have multiple streams of income?
« Reply #3 on: February 16, 2016, 09:42:01 AM »
In my early twenties I went through a 3 job period: temping, consulting, and SAT tutoring. Once I got a FT salaried position, though, outside jobs dropped off.

Until last year when I started thinking about side gig options. Yes, this was because of FIRE goals. Got a little money copy editing, started and abandoned a financial coaching biz, and now I'm working on monetizing romance novels. (Very early stages, as only the first book is out, so no money yet.)

I'm also keeping my eyes open for relatively passive, location-independent sources of income. Romance writing can pull in a lot after a while, but it requires consistent writing and marketing.

This isn't really about risk, as I could easily find a new job if necessary. It's primarily to speed up my FT quit date so I can get by on investments and side gigs. PT consulting work isn't easy in my day job.

GrowingTheGreen

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Re: Do most MMM'ers have multiple streams of income?
« Reply #4 on: February 16, 2016, 10:54:24 AM »
In my current job, I am not allowed to hold other positions.  Since we decided to get out of real estate investing, this is my only income.  My husband does a small amount of freelance work (that I hooked him up with from my last job...) but it only brings about $1,000 a year.

If my main source of income goes caput, I would have to find another job.  We have enough savings that I have a strong cushion to work with.  The last time I was laid off I made more in freelance income than I did in regular income, however, I prefer a full time job. I was working way too many hours and had no work/life balance to keep that up. But I did what I had to do, because I didn't know when the freelance work might dry up, and when I might actually find a job.

What kind of work do you do that restricts your outside activities like that?

Prairie Stash

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Re: Do most MMM'ers have multiple streams of income?
« Reply #5 on: February 16, 2016, 11:11:13 AM »
I have multiple sources of income, I have Dividends and Capital gains on top of my job. I had a roommate and a renter in my house prior to having a family.   If your expenses eat up your entire pay then you will need to either:

A) Earn more
B) Spend less
C) Do nothing and wait
D) A and B

Unfortunately its really that simple.




boarder42

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Re: Do most MMM'ers have multiple streams of income?
« Reply #6 on: February 16, 2016, 11:14:49 AM »
I have a high income to begin with but just love figuring out ways to make money while doing very little.

2016 - extra curricular profits
1. DFS - 16k
2. Ticket scalping - 4k

My wife loves photography - so she basically does weddings and other pictures to fund this hobby.

you have to find something you have a passion for IMO to make a side income work.  For me its creatively figuring out ways to profit with little effort.  For my wife she just absolutely loves photography. 

AlanStache

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Re: Do most MMM'ers have multiple streams of income?
« Reply #7 on: February 16, 2016, 11:28:42 AM »
I would probably do better expanding my skill set and earning more from my current job or working on my house than I could do from some start up side gig.  Also work hours and volume can be difficult to predict far out so planing for a side gig would be hard.  But something like ticket scalping might be doable but then I would have to want to do it... I could see building cool little things to sell on Etsy but I really do have to much on my plate right now even think about expanding my ToDo list.

Doing freelance work outside my main job in my field could make things awkward or hurt my main jobs raises. 

lpb0306

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Re: Do most MMM'ers have multiple streams of income?
« Reply #8 on: February 16, 2016, 11:54:10 AM »
I babysit or dogsit occasionally, and I do some online stuff. It doesn't take up too much of my time though, which is how I prefer it. The last thing I want is for work and money to take over my time and life.

Gone Fishing

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Re: Do most MMM'ers have multiple streams of income?
« Reply #9 on: February 16, 2016, 12:08:22 PM »
Never really wanted a side gig, 55-60 hours a week dedicated to work (including commute and prep time) was more than enough . We did end up with a rental house out of circumstance (it was upside down when we moved out in 2008) but I'd probably get rid of it if I got a decent offer.   
« Last Edit: February 16, 2016, 12:22:23 PM by So Close »

Villanelle

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Re: Do most MMM'ers have multiple streams of income?
« Reply #10 on: February 16, 2016, 12:15:00 PM »
I don't currently work due to overseas military moves.  We do have 2 properties, though neither make much.  One was bought as an investment and hasn't really panned out (though it isn't costing us anything) and the other was our residence that we rented out when we left, and it makes a modest amount (and though this is unrealized, has made a nearly obscene amount in appreciation--about $175k in the last 6 years, and that's a >2000sqft attached townhouse). 

When we get back to Japan this summer, I will teach English again, which is decent money.  I'm guessing I'll make roughly $12-15k/yr (it was more last time when the yen was stronger, and when I had less other stuff going on and was able to teach more than I think I will be this time).  That will be about 10 hours a week, plus prep and driving time. 

All of this was before MMM.

chubbybunny

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Re: Do most MMM'ers have multiple streams of income?
« Reply #11 on: February 16, 2016, 12:39:46 PM »
I was in the office yesterday and I learned that a co-worker bought a 3d printer and has had some pretty large success selling creations online.  I didn't quite understand it, but it sounded like cosplay type stuff that he designs and paints.  In the same discussion, I found out that another co-worker regularly sells on etsy, another has his real estate license, and another one does motorcycle repair from his garage. 

Most of the explanation was around fear of our pension going away (which they've already begin phasing out), and also fear that everyone's jobs, retirement accounts, and social security will all disappear. 

I'm thinking, does everyone here have a side-gig? I've got a couple rental properties and am starting to get a lot more dog sitting gigs each month.  Lately about 20% of my income comes from outside my salaried position. 

zephyr911

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Re: Do most MMM'ers have multiple streams of income?
« Reply #12 on: February 16, 2016, 01:01:02 PM »
Yeah. I have a bunch:

FT gov job - plan to quit next year at age 38, small deferred pension at age 60. My goal this year is to invest 100% of my take-home while I cover costs via:

Air National Guard (weekend warrior) - nets $16-18k and rising, plan to work 39 days a year till 2022, lifetime retired status (cost savings), pension at age 62.
Real estate (Part A): rented out two previous homes, and co-founded a growth-oriented partnership that owns 2 props and is negotiating purchase of several more right now.
Real estate (Part B): had my LLC partners help pay for my real estate license so I could be our agent, and get commission when we buy. May top $10k this year (our 2nd full year). Since I can, I've also offered my services to others, mostly friends and family, and I'll keep doing that (I genuinely like it enough to be a legit post-FIRE job for me).

Rental income is all reinvested so it doesn't offset any current costs, and the LLC won't pay out till well after my target date, but between ANG and RE, I'm still near my crossover point. Once the company starts distributing profits I should be back to a high savings rate in my early 40s (while only working a few days a month) and coasting toward full FIRE.

There's also a lot of stuff I'd like to do after "retirement" that might involve pay - consulting, teaching, policy work, etc.
« Last Edit: February 16, 2016, 01:03:52 PM by zephyr911 »

rubybeth

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Re: Do most MMM'ers have multiple streams of income?
« Reply #13 on: February 16, 2016, 02:00:32 PM »
I don't know about "most" mustachians, but I just have one full time job, and hopefully when DH is done with grad school, he'll just have one full time job, too. DH has talked about doing some consulting, but no idea if that will come to fruition. We are currently just living on my income, and he has a fellowship that will cover tuition for his last semester.

JLee

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Re: Do most MMM'ers have multiple streams of income?
« Reply #14 on: February 16, 2016, 05:37:35 PM »
I have a rental property only because I moved cross-country for a job and didn't want to sell.  I'm also an Amsoil dealer for friends/formerly-local-car-club-members, but that's minimal income (maybe ~$100/year).

thedayisbrave

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Re: Do most MMM'ers have multiple streams of income?
« Reply #15 on: February 16, 2016, 06:06:01 PM »
Yep, like others have mentioned, having multiple streams of income can reduce risk.

In my case, I just like experimenting and trying new things and having a lot of irons in the fire, so to speak.  Right now it's primarily rental properties and being a real estate agent.  At first glance it may seem like I'm too reliant on the real estate industry for my income but they actually kind of work as opposites, I've found.  The rental income has always been steady, and it's even more in demand during an economic downturn (Class B rentals, decent but no frills, so it's still quite affordable).  The real estate market here is great right now, but that could change too...

Right now I'm also in the negotiating period of joining a startup.  Would have a decent amount of equity (well if you consider no capital outlay) and it's one of those that has no venture funding, but already paying customers. 

Yes, you can only cut your expenses so much.  There comes a time where your lower spending just becomes automatic... that's when the focus needs to shift to increasing income :)

MMMWannaBe

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Re: Do most MMM'ers have multiple streams of income?
« Reply #16 on: February 16, 2016, 07:26:11 PM »
We may be the exception.  From my perspective we do not currently have multiple streams of income.  My husband and I have each had one job and for approximately 15 years maxed out our 401K's.  Last year at the age of 45, the numbers indicated we were FI.  In my early 20's I had a condo that I wanted to turn into a rental property, but DH said no.  I am still a little sad that I was unable to use it as a rental property as now I think it would be paid off and be providing me $1K in rental revenue.  But I also know that most of the time the stock market gives me a good return for little effort.

Even though we are technically FI, we are both working.  DH has dreams of a luxurious "retirement".  I did give up the corporate life and work part time (for significantly less)...but I am able to get the kids on and off the bus and have a little time during the day to volunteer, do grocery shopping, and other household endeavors.  Without my part time job, cash flow would be tight (it funds our vacations which are a high priority in our life).  My inner struggle is whether I should completely FIRE and use my spare time to live within our means while our investments compound.

Lski'stash

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Re: Do most MMM'ers have multiple streams of income?
« Reply #17 on: February 16, 2016, 07:59:17 PM »
I can earn comp. time if I give up my life manning period to sub for another teacher at school or teach something after school. It earns $25 an hour- I take all of the time I can get my hands on:)
 
I occasionally also tutor if I'm asked, but I think l prefer not to because of the extra prep time involved.

And I Ubered this summer as well- it was actually a lot of fun!

Oh! And we (spouse and I) now use a cash rewards credit card, as opposed to paying a credit card now that we have no credit card debt. So far it's made $75. We don't do any cc churning or anything like that though...at least right now!

JustTrying

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Re: Do most MMM'ers have multiple streams of income?
« Reply #18 on: February 16, 2016, 08:59:01 PM »
I don't know what most do. I personally only have my one job. I'd like to have a side hustle, but I can't figure anything out that I think is worth my time. I make 6 figures at my real job, so it's hard for me to swallow the idea of doing anything in my freetime that pays worse than what I currently make in my career. My current job is also pretty tiring, so if I were to have a side hustle, I'd want it to be something non-stressful. So far I haven't come up with a side hustle that pays well and isn't stressful.

Exflyboy

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Re: Do most MMM'ers have multiple streams of income?
« Reply #19 on: February 16, 2016, 09:27:05 PM »
kind of..

We have two rentals plus a farm business for RE tax deferral purposes.

Dividends from after tax investments makes about $12k or so. We also have two pensions that will almost cover annual expenses.

Goldielocks

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Re: Do most MMM'ers have multiple streams of income?
« Reply #20 on: February 16, 2016, 09:35:03 PM »
Other than dabbling in real estate (DH), and then his own business (but only one at a time), we have been one person, one job, plus parenting and occasional volunteering....  I am paid weil, but not nearly at the level of many others who post here.

But now, with FIRE looming, I had to start thinking about what I would really do with the next 20 years, and so I picked up a part time job just to see if I like it.  So now, I am a PT instructor for college night school, and taking my last 2 classes for certification for another type of side consulting gig, which I will also try out before officially pulling the FT employment plug.   

Best part is that 100% of the side salary goes directly into savings.  It is work, but wow, once you start, you figure the workload out pretty quickly and it just keeps going.

Villanelle

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Re: Do most MMM'ers have multiple streams of income?
« Reply #21 on: February 16, 2016, 10:03:44 PM »
I didn't mention that we also plan to have a military pension. It's not a side hustle, but it is an additional income stream.  It would be enough for us to live on in and of itself, though not quite up to the standard we'd like or in the places we'd like.  But it's definitely part of our plan and obviously makes a huge difference.

Zikoris

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Re: Do most MMM'ers have multiple streams of income?
« Reply #22 on: February 16, 2016, 10:37:47 PM »
Does my investment account qualify? Otherwise, no - I'm just way too lazy to have any sort of second job, part time or otherwise. My boyfriend used to invigilate exams once in a while on weekends, but he stopped a few years ago.