How many streams of income do you have? What would happen if you lost one? Would you be able to make it? Stay tuned.
From Philadelphia, the home of the Liberty Bell, Financial Freedom Radio starts now. Here’s your host, Raymond Jewell.
Hey everybody. As you can see, this is not Dr. Ray. This is Steve. Dr. Ray is taking a week off. He’s, let’s just say, out of pocket, but he’s doing fine and he just needed a week off. So I thought it was a good opportunity for me to share some thoughts with you that I’ve had about multiple streams of income. As you know, Dr. Ray talks a lot about a very macro view of things, from an economics point of view. His focus is on the big picture. I like to focus on the little picture, actionable steps that we can take on a day-to-day basis. So it’s good for me to jump in every now and again and give Ray a break. So he’s off this week. I’m going to talk to you a little bit about a topic that’s important to me and that’s multiple streams of income. Now as you can see, I’m a one-man show today. I’m looking over at my control board. I’m looking down at my inputs and cameras. So I may not be making constant eye contact, I apologize. When you run a show all by yourself, it is what it is.
Today, I want to talk about multiple streams of income. I’ve got a quick slide here that I want to pull up. So these are what they call the 7 income streams. You can see right there, I got this off Instagram, you can go take a look at it. There are 7 primary income streams. Today I’m going to cover a couple of them. Some of them are above my pay grade and things that I don’t really know that much about. So I’m not going to pretend to act like I do. Earned income is what most people have that if you have a job, you have earned income. You do work, you work a job, and you get paid for it. You get paid for the work that you do for your employer, that’s earned income. Everybody typically has that, but the problem is everyone typically only has that. So if you lose your job, if you get laid off, if the company goes under, that revenue stream is gone. So it’s important to have as many of these income streams working in your favor as you can. The one I’m going to talk about today is profit income.
Buying and selling, Ray has alluded to some of the side things that I do, and today we’re going to talk a little bit about that, what I do as far as profit income. My profit income does not replace my earned income, nor do I really have a desire to because I like what I do and I enjoy the job. So I don’t have any intentions of leaving it, but if it left me then I would absolutely be able to continue to sustain myself because I’m diversifying in multiple streams of income. Interest income, unless you’re a big bank or unless you loan money out to people which is definitely a possibility, this one’s not really going to be applicable to you for someone just starting out, just trying to get their feet under them for financial freedom. This is probably not going to be an applicable dividend. Income can come in a couple of ways. Now, this says income promoting stocks, but one of the other things that I have done in the past and still continue to do just not a lot is cryptocurrency.
I know everyone says cryptocurrencies and cryptocurrency is not a scam. Cryptocurrency is exactly the same as trading for a Canadian dollar or the Japanese Yen, except they’re physical currencies that you convert US dollars into. Physical money for Virtual money is a perfectly legitimate way to do it. It’s just a lot of stress and it’s not something that I typically do anymore, but my son as an example has invested in cryptocurrency and he’s made a pretty good return on investment with what he’s done. So that’s something else that can be explored.
Rental income. If you own real estate, and everyone says real estate is king, there’s not any more real estate being made. If you own real estate, renting it out can be a good source of income. Capital gains. I know people will mock me for it, but that’s fine, I have a huge video game collection. Believe it or not, some of those video games have gone up significantly in value. Some games that I have, I bought for $20 and they’re worth north of $100-200 now. So it’s absolutely possible to own assets, whether they’re paintings or video games or gold or silver. Those assets increase in value. You can absolutely sell those in a time of need and create revenue from it.
Royalty income, this is kind of the holy grail because this is really where you have a very unique idea and you’re able to sell that idea and people buy your idea and you get paid for it. This is very big in Hollywood. Royalty income for actors make royalty income, musicians make royalty income. One of the things that I’m working on is, I’m putting together a training course on how to buy and sell like I do and actually make a profit from doing it. So once I put that training course together, that’s my idea, that’s my process. Once I have sold that, I’ll then start making royalty income. So more of these different income streams that you can have, the more diverse you are, the more protected you are. If one of them were to go away, if I stopped buying and selling today, I’d be fine because I still have my earned income. If I lost my job and I didn’t have my earned income, yes I’d have not as much profit income, but I would be able to crank that up and the hours I’m spending working the job, I would be able to spend buying and selling. So I absolutely know that I could replace that income if I chose to.
So that was kind of the graphic that I wanted to show you. So what I want to do is talk a little bit about what I do. I’m not going to spend a whole lot of time on it, but I just wanted you to understand the idea that, in previous episodes, and I’ll put the links in the description below, I’ve talked about YNAB and having a budget. That’s really talking about getting your expenses under control. There are really two things that you have control over when it comes to Financial Freedom. It’s raising your income and lowering your expenses. So I’ve already talked about lowering your expenses, identifying where you’re spending your money, making conscious choices to spend or not spend there, and by doing that, you notice that over time as you become more aware of your spending, your expenses start to drop. So once you’ve gotten that slope going in the right direction, I realize that’s backward on television. Once you’ve gotten that slope going in the wrong direction, then you talk about increasing your income. Once you’ve got that, now you’re in a better place to start doing some of the more macro things like investing and diversifying and things that Ray talks about.
So buying and selling in a nutshell is what I do. This is a great industry. I’m going to pause the video and I’m going to come back and I’m going to show you an example of what I do. So hang on one second.
Okay, I’m back. So let’s take a look at what’s going on here. Now I told you I have a love for video games. Buying and selling for me. Step number 1: find a niche that you like, something that gets you excited. This can be a grind, this can be something that is very time-consuming. If you don’t have a passion for what you’re doing, then you’re not going to be successful. I could not buy and sell makeup or women’s clothing. It just doesn’t get my blood fired up, but when it comes to video games, I love video games. I don’t know why. I’ve just always played them as a kid, I’ve always played them as an adult. I enjoy video games. So buying and selling video games is a niche that I enjoy and is one that’s very easy for me to do.
I’ll tell you what I do and I’ll tell you how I got started. What I do is I go to yard sales, I go to flea markets, I go to pawn shops, thrift stores, I go to big box stores and that’s what I’m gonna show you here. I look for things that are being sold very cheaply that are in high demand. Since they’re in high demand, I can buy them cheap and sell them for a profit. Basically, that’s all it really boils down to at the nitty-gritty. There are tons of videos on YouTube. I have a whole YouTube channel separate from this one where I talk about what I do and give more specific examples. Basically, the idea is you can start with no money or very little money or even no money, and sell things and take the money and then reinvest it and buy more things. Over time, you start building up an income that you can use to buy more and more things low and sell them high. So what I tell people is this. If you’re just getting started and you don’t really have any money to spend on this, you probably have an attic or a basement full of things that you no longer use or no longer want. eBay is a great way to get started. Go in your attic, go in your basement, find things that you no longer need that you no longer want, typically electronics do well, clothes not so much, but electronics, video games, anything pop culture related typically do really well.
Just go into your attic, go into your basement, find stuff, and put it for sale on eBay. Even if it’s $10 or $15 or $20, whatever it may be, and over time that money will snowball into a bigger pile of money just as an example. I’ve been doing this for probably a couple of years now and in the course of that couple of years, we are now getting hardwood floors put in our house and it’s not costing us anything because of the profit that I’m making from this buying and selling is paying for that. It gets exponential. You’ll start out with $10-20, but what you’ll find is as you spend $10, you’ll make $20. So you put the $10 back that you spent, now you’ve got an extra $10 you didn’t have. So you take the $20 and now you’ve got $40 and then the $40 turns into $80 and it just keeps snowballing. It really does work that way. So I’m going to show you the other thing that I do.
I go to the big box stores. So this right here is a video game for the Nintendo Switch. If you’re not a video game nerd like I am, the Nintendo Switch is a popular item right now. This particular game says $19.93, but that price is absolutely wrong. I paid $4 for this game. Now I won’t get into how I knew that, but here’s the takeaway tip. On your phone, I got this at Walmart, you can tell that’s a Walmart sticker on your phone. You put the Walmart app on your phone and it has a barcode scanner. What I did was, I walked into Walmart, I knew that this was on sale by the way, so that’s a separate discussion. I walked into Walmart, I scanned that barcode which is having a hard time focusing. Anyway, the app said $4 and I knew that whatever it said on the app is what it would ring up at the register. So even though this says $19.93, I knew that when they scanned it to the register, it would come up as $4.
I have another app on my phone. I sell on eBay and I sell on Amazon. So what I can do then is take the official barcode from the back of the item and I can scan that in eBay and see what people are paying for it or since I sell on Amazon, I can see what it sells for on Amazon and then determine whether or not I want to buy it. So I’ll just do that here real quick for you. So you can see right here, this game sells for 18 as the low price on Amazon. So if I buy this for $4 and then I sell it for $18, I’ve technically made $14. Now that doesn’t take into account shipping and fees and things like that, but still. Let’s say, hypothetically, the rule of thumb that I tell people is this. If the price that Amazon sells it for is 3 times what you paid for it, then you’re going to make money. Typically, as a rule of thumb, I like to do a double up. So if I buy this for $4, I want to make $8 in profit and on an $18 buy on Amazon, by the time you get done with Amazon fees and shipping, I will make about $10 on this. So I’ll spend $4 and I’ll make $6 in profit after I’ve paid back the $4. So if I buy 100 of these, then I’ll spend $400, I’ll make $600 in profit.
I did nothing except go to Walmart and buy 100 copies of this, list them for sale on Amazon, and wait for them to sell, and then walk away. So that’s a big deal and that’s very easy to do. Anybody can do that. Now if you don’t have $400 to start, go up in your attic. I’ve collected toys since my kids were little and they’re all sitting up in the attic. I can go upstairs right now, grab any of those toys that I bought 20 years ago and sell them on eBay and make $400-500 just from selling those and it cost me nothing because I’ve already spent the money.
So that is what I do on the side outside of what I’m doing here as a little bit of side hustle money. Because I’ve been able to do that, I can buy the latest and greatest computer equipment to upgrade these podcasts, I can buy hardwood floors for my wife, we’re going to be buying a new car after the hardwood floors, we’re going to be buying a new car after that. So all of that comes from this buy and selling. Now if I go to a yard sale, yard sales are even better. Granted this is still new and this is still sealed, but if I go to a yard sale, I can buy even better than that. Just yesterday, I bought an old Playstation one with about 15 games with it for $100, I think. That will sell for about $300-400. So then my profit margin is going to be even more because people are willing to sell things cheaper at a yard sale than you would be able to buy them in a store.
That works the same for thrift stores. I’ll buy a video game at Goodwill for 99 cents, in fact, I bought books from Goodwill. I bought one in particular from Goodwill for 99 cents and sold it on Amazon for $89. So it’s very much a real thing. It’s a very simple thing to do. The headache comes from having to list it and ship it, but I’ll take the headache of listing something and finding a box and shipping it if I can make a $90 profit on a $1 buy. If you’re not willing to invest 20-30 minutes of your time to make $90, you’ve got bigger issues that you need to deal with.
So anyway, that’s what I wanted to talk about today. Ray has been bugging me for a long time to talk about this and since he took the day off, I figured this was probably a good time to do that. Again, it may not be for everyone. I’ve done other things, I’ve done the cryptocurrency, I’ve done the buying and selling, I’ve done the multi-level marketing. You name it, I’ve done it, but it’s all in the names of multiple streams of income so that you don’t lose everything if you lose one stream of income. There was a saying a long time ago that said, would you rather have $10,000 from one person or $1 from 10,000 people. In the grand scheme of things, it’s the same amount of money, but if I lose one person in one story, I’m bankrupt. In the other story, It’s not a big deal. So the more you can diversify your income, the more, now yes it’s a hustle, yes it means you may not be able to watch your favorite tv show every night when you come home from work. There are nights where I come home from work and I do nothing but grind, looking for things to buy on Facebook Marketplace, looking for things to buy from Walmart and Target. We’ll spend every weekend driving. I can’t tell you the last time we were home on a weekend. We’ll go out 5, 6, 7 hours on a weekend hitting 8 or 9 Walmarts and Goodwills and flea markets and things like that. So there is work involved and it is a hustle, but at the end of the day, it’s fun. It gets me out of the house. Again, I’m not a tax accountant, so don’t take tax advice from me, but a lot of your expenses become business write-offs. If we go out to dinner and we go to a Walmart to look for things before, that dinner becomes a tax write-off.
So there are lots of benefits to having what we call a side hustle like buying and selling or maybe it’s a cottage industry where you are making. My daughter makes custom mugs, coffee mugs, travel mugs, and maybe that’s something that you’re interested in. Maybe you make quilts. Etsy is a great place to sell products. With the invention of the Internet, there are lots of ways for you to get your product in front of people. I think there’s something call Postmark which I’ve never dealt with if you want to sell clothes. Etsy if you want to sell handmade crafts. My daughter’s a very skilled artist and she sells drawings on Etsy. She sells custom-printed cups on Etsy. My son is a writer so he sells a lot of his services on different writing sites where he’ll do transcription or he’ll do ghostwriting for people. Again, it’s about diversifying income, fighting other streams of income so that as your expenses line goes down, your income line goes up. Now you’ve got the money that you need to help get you to the financially free place you’re trying to get.
So I hope that was interesting. I rambled a little bit, it was kind of last-minute preparations. I hope it made sense. If you guys are interested, I’ll put a link to my YouTube channel where I talk about this stuff a lot more below. Ray will be back next week. Next week will be post-election. So good Lord, I gotta hit my own alert next week. So I’m sure Ray will be fired up one way or the other. Hope you guys have a great week. I will talk to you guys next week, hopefully from the other side of the camera not from the front. Take care. God bless.
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