Multiple Streams of Income

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Multiple Streams of Income

Multiple Streams of Income

My life is dictated by the school year and at this time of year, the start of summer, I feel both exhilarated and unsure.  Though I am looking forward to this week being over as it is the final week of school, the beginning of summer also means a loss of income. To supplement the next three months of my summer vacation, I’m using various methods to bring in additional money. It won’t make up for my teaching income which spans 9 months out of the year, but it will help pay the bills and keep me on track with my budget. Here is the breakdown of what I will be losing in the way of income, and ways I hope to make up some for it:

  • Income Loss: $3,200 a month in teaching

Passive Income Ideas

  • Tutoring: $500 monthly
  • Administrative side job: $400 monthly
  • Additional web site and graphic design job income: $1,500 monthly
  • Writing for publications: $100 monthly (this might be wishful thinking!)

Total potential income is $2,500 a month, about $900 short of what I make October through July (those are my pay-day months). My monthly budget throughout the summer stays about the same since I don’t drive very far to work, and some days I ride my bike. This equates to not saving much on gas. I also don’t buy lunch when I’m working, I bring my own, so no savings there. I will save a little money on school supplies, such as rewards, prizes, and candy, but the total amount saved will be minimal and won’t help make up the difference in lost income.

I’ve looked closely at a few items in my budget where I can save a little money by renegotiating the terms and prices. For instance, I was recently able to lower my auto insurance by almost $20 a month, which is a huge savings. I’m thinking I might be able to apply this strategy of shopping around to reduce my phone bill. Web hosting is another area I’m working on cutting expenses. I’m basically merging two servers into one and should be able to save quite a bit on monthly web hosting costs. If I can whittle my monthly bills down by $75, I would only be short $825.

But how could I potentially make up that missing $825? I’ve thought through a few scenarios and decided I could reduce my Starbucks (gulp!) and perhaps bump up the additional streams of income.

  • Switch out my daily Starbucks Americano at $2.55 to the Via packets and vanilla syrup at $1.85. Total monthly savings $21.00 (Almost doesn’t seem worth it! * sigh*)
  • Increase the amount of web site projects: Potential income  $450
  • Increase the number of tutoring clients or hours: Potential income $150
  • Increase the number of Cap Light orders (a passive income generator that has been taking up too much of my time lately!): Potential income $50

I could probably squeeze another $600 to $700 out of my potential streams of income, but these figures are estimates and could be higher or lower in actuality. Hiding in the wings is another passive income generator that I’ve been patiently waiting on. My husband and I have been working for a company on a percentage basis. The company is in the negotiation process with a potential client. This could mean a few thousand dollars is heading our way. We just need to remain patient and hope that the contract goes through within the next couple of weeks.

Luckily, I’m a flexible, jack-of-all trade’s kind of person and can adapt to almost any environment. Yet knowing where my money goes and having a savings account is also helpful during this unpredictable season.

Does you income fluctuate throughout the year? How do you navigate your way through those low periods?


Join the conversation and post a comment.

  1. Financial Samurai

    Is it really income loss though? Let’ say you earn $50,000 a year from teaching… it’s that figure because it bakes in 9 months of work. If you were to work 12 months, it would simply be $62,500 in total income you’d earn, no?

    Multiple income streams is definitely a great endeavor!
    .-= Financial Samurai´s last blog ..The Carrot That Makes You Jump Through Hoops =-.

    • Little House

      @Financial Samurai – I see where you’re going with that. However, because my monthly budget stays consistent throughout the year and my income doesn’t, I’m usually in the position to make up for the lost 3 months of pay. Perhaps I’ll get hired on as a full time teacher in a couple of years, then my income will not only increase, but I’ll get paid for my time off too. I can only hope! Until then, multiple streams will have to continue to be developed. 🙂

  2. Money Reasons

    My income is very predictable, perhaps too predictable…

    I applaud your for having such a great multiple income streams! I really don’t have that, and least to a noteworthy degree…

    I like the insurance idea! I have a buddy that has a truck and he basically has no insurance on it until he need it, then when he does need it he calls his insurance company and has it added for a day or whatever. Then after he’s done with it, he calls to have it turned back off. He says a lot of money on insurance this way on this big pickup truck that he hardly drives.
    .-= Money Reasons´s last blog ..Red Box Review =-.

    • Little House

      @Money Reasons – I’m saving on my insurance only because I’m switching over to another company. But I continue to keep my vehicle insured all year long. It’s much too risky to drive around without it! As for your buddy, I guess if he doesn’t really drive his truck, I can see where he might not want to pay it if its not in use. Hopefully he lives in an area with light traffic. Here in LA, there’s way too much traffic to feel safe for me to do that!

  3. cna training

    Great information! I’ve been looking for something like this for a while now. Thanks!

  4. Everyday Tips

    Just curious, I know in Michigan you can sign up for the plan where you are still paid during the summer months. Of course that reduces your check for the whole year, but would that be easier for budgeting and such? Of course, you would lose money you could make in dividends/interest if you went with the 9/10 month plan, but the continuity might be worth it.

    Regardless, you are a very resourceful individual! You could also consider selling some book and household items on Amazon/ebay.

    Good luck, and great post!
    .-= Everyday Tips´s last blog ..Happy Fathers Day And… I Am Now a Member of the Yakezie! =-.

    • Little House

      @Everyday Tips – As a substitute teacher, I wouldn’t have this option available to me. As a hired teacher, I would automatically get paid over the summer. I just now need to find a job! Thanks for the comment.

  5. Money Funk

    But now you are a staff writer. Is that accounted for(or is that part of the publications)?
    You could increase that notion. You could also make income having an annual garage sale. Or if you have an eye for picking out valuable items from estate sales and doing resales…is something you can consider. With your teaching /tutoring/ebook skills and husband’s web design, you could put together an online tutoring/education package. Of course the latter would take some time. Pet sit? 😉
    .-= Money Funk´s last blog ..How to Set Up a Spending Plan =-.

    • Little House

      @Money Funk – You’re right. I’m counting in my Wisebread money as my “writing” money. I’m not really sure how much I’ll be making this summer since this is my first month as a staff writer. I like the idea of selling things and my husband has already started going through stuff as we prepare to pack up for a late summer/early fall move. We have lots of things we don’t use anymore that are just taking up space and we don’t want to move them! Thanks for your tips. 🙂

  6. Barb Friedberg

    I am really impressed with your additional income streams for the summer!!I had a creepy week end trying to sell a 7 piece drume set and electric piano on craigs list; 3 spam email responses and no legitimate interest. I was surprised. I’ll keep trying and see what happens. I hope you have better luck than I did! Best regards, Barb
    .-= Barb Friedberg´s last blog ..HOW TRADING IN A CAR EVERY 2 YEARS MAKES GOOD FINANCIAL SENSE =-.

    • Little House

      @Barb Friedberg – Thanks for the comment. Sometimes Craigslist can be a bit creepy. You never know who email or the response you’ll get from posting on that site. Sometimes it’s on target, and other times it’s completely off target. 😉


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