A few weeks ago, I took part in chat on Twitter about making #bossmoves at work and as entrepreneurs. One of the key nuggets that was dropped was that entrepreneurs usually have at least 5 streams of income going for them.
This was something that I knew and something that I practice. I am up to four now: my current job, various freelance writing/blogging gigs, a part-time job, and my monthly investing. As for the last stream of income, I am working on it. My Antiguan grandparents ALWAYS told me “land never spoils” so I know that some type of property ownership in on the horizon.
But for many of us, too stressed, too stretched for time, or uninterested in actively increasing streams of income, the whole conversation about creating these money flows may be premature. Those of us not ready to pick up a side hustle or start on a new money-making endeavor still need to increase our income however.
So after the Twitter Chat, I came up with the idea of 5 streams of savings.
Yes, five streams of saving comes from all of those places in our budgets, daily choices, and spending that can make or break our savings goals. Over the weekend, I spent most of Saturday cleaning out closets and chillin’ (I had the house to myself; the hubs was gone) and in the process of filling plastic bags and shopping bags with stuff to give away, I noticed 5 major streams of spending that I could EASILY convert into streams of saving.
1. Books: I think this weekend alone, I gave away 15 books. This does not include the heap of books that I gave away a few months ago. Books are a real weakness for me. I love writing in them, touching them, and smelling them, but it is a little ridiculous that I read them and then throw them away. Instead of buying everything that I want to read, I may have to start returning to the library and reducing my monthly book budget by 50%.
2. Lipsticks: I was cleaning out my makeup bag. Why did I count about 15 tubes of lipsticks all within the same color family? Ask me if I even wear makeup that much? That would be a negative. For argument’s sake, let’s just say that each tube costs an average of $8. How much could I save if I decide NOT to buy another tube until I use what I have? $120
3. Salad in a bag: I was cleaning out the refrigerator and for the 5th time that I can remember, I let the salad go bad. They are about $2 a piece. So there is $10 saved if I get honest with myself and surrender to the fact that I am NOT going to eat salad all like that.
4. High heels: So, in my mind, I still think I am 22 and am on the scene. Why? Don’t know! Even when I was 22, I was in sneakers and a hoodie before heels. Even now, why am I picturing myself going out when a sister can’t keep her eyes opened past 9 pm? It’s crazy and financially irresponsible. So, I will use the shoes that I have or invest in something that I could actually use that is both comfortable and stylish.
5. Lotions: Between the Eucerin, shea butter, and the Body Shop strawberry lotion that I have, amongst other products, I can say for certain, there is NO need for me to step into Sephora, Rite Aid, or the Body Shop until December 2014. I mean, no reason.
And so, if I approach savings as a source of income, I can easily add this as my final source of income until I identity what land to buy.
BMWK: How about you? Can you relate? If you can’t or don’t want an additional source of income through entrepreneurship, how can you increase your streams of savings?