The vast majority of people I know are dependent on one source of income – work; either working as freelancers, state workers or in private sector, most people in general earn their money through a job. There is absolutely nothing wrong with except that it’s a shame not exploring other options. When I was in school, the saying went: you have to study hard and have good grades so you can have a high paying job. But what if we taught kids to study hard and explore as many hobbies or interests as they like, so they can live a fulfilling life and have multiple streams of income ?

I’ve seen multiple classifications of income types on the internet – 3, 5, 7 etc. but here’s the one I like the most: 1. Earned (active) Income 2. Portfolio Income 3. Passive Income.

Earned (active) Income – the most common income gained either through employment or self-employment. In this case the worker exchanges his/hers time, energy and skills in exchange for money from a company or a client aka money acquired through working.

Portfolio Income – Money made through investments such as earned interest, dividend payout, capital gains etc.

Passive Income – Money you’ve earned that doesn’t require your active participation. This includes many things such as selling stuff online, selling digital products, books, e-books, websites, videos, photos, artwork. Income for a product or a service that requires little maintenance and is being offered and purchased in an automated manner. Also the most fun one.

Other than the obvious advantages of multiple income streams – having more money, I would say the key one is the diversification. To quote Investopedia on diversification in investing:

“Diversification is a technique that reduces risk by allocating investments across various financial instruments, industries, and other categories. It aims to maximize returns by investing in different areas that would each react differently to the same event. Most investment professionals agree that, although it does not guarantee against loss, diversification is the most important component of reaching long-range financial goals while minimizing risk.”

Source:; Nick Lioudis; 01-29-2021

So if diversification is a key principle in investing, why wouldn’t it be a key for your incomes as well? Having more than 1 income does not only bring financial gains, but also reduces risk of potential problems in future such as insolvency in case of losing your main income. I’ve never thought about it before and also relied on job income – focusing on career growth for salary gains. But as I mentioned in the previous posts, with more money comes more responsibility and higher expectations and after a while you realize it’s not even worth it. So for this sabbatical my key goal is to explore ways to build an additional source of income in the future. It may not be the first thing you try or it might take months/years for you to make some money, but it’s still worth it.

I’m exploring passive income in an online world as this was always interesting for me. Creating digital products is way which can bring you additional side money by creating a product that you make once and then resell (in theory) endlessly. Sites like Etsy, Spreadshirt etc. allow you to set up a free account and post you products, once you make a sale you get a cut from the price – typically – 70%. There is a ton of websites allowing you to sell graphics, templates, photos or other creations for free. But that’s not the only way. If you have a skill that you can teach people from programming, financial advise, cooking, photography lessons, excel courses you can make an online course and post it on sites as Udemy where people will purchase your content. You could also publish an ebook through Amazon’s KDP – which is a self-publishing platform.    There are endless possibilities to both create something or even learn a skill that you need for building a side income. Purchase courses and learn something that you can later monetize for yourself, build a website an offer advice, how-to, DIY’s or anything you desire. Write a blog! Do you want to share your thoughts on a specific topic ? Set up a WordPress website – takes less than 1 day and post your stuff. Like to debate or interview people ? Set up a podcast. Tons of ways you could do this, the only thing is to start.

Remember to have fun while you’re doing it and don’t think about the money. 😊