There are usually many different paths to get to any one place. It's the same for reaching financial independence. There are many different ways to achieve financial independence and how you choose to achieve that is up to you.
My Path to Financial Independence
When you first get into investing, the first this you'll here is how you have to diversify. Diversification here means to have different asset classes in your investment portfolio such as stocks, bonds, or even real estate.
But, did you know what you can diversify more than just your investment portfolio?
What I'm talking about is diversifying your streams of income! In other words, having multiple different sources of where you income can come from! The primary source that most people are familiar with are jobs where you get a paycheck that you can reasonable expect to come every two weeks or sometimes every month. But like I mentioned, there are other ways to get an income. A quick google search will show you several ways that you can gain multiple income streams. You can start something like a side hustle! Here's a list of Side Hustles from Nick Loper's site, Side Hustle Nation.
My Chosen Income Streams
These are the avenues in which I hope to achieve financial independence:
1. Dividend Producing Stocks
Did you know that you can get a return on stocks besides just buying them and hoping they increasing in value? That's right, you can get actual cash flow from stocks! There are many stocks where the company will cut you a check for a certain amount of money just for owning the their stock. That's amazingly passive and why it will be my main focus when producing extra income streams. I'm also planning to dabble in REITs (Real Estate Income Trusts) which are more risky than regular stocks but have higher dividends (which for REITs are called distributions). I also plan to go into bond ETFs (Exchange Traded Funds) which will give me interest income and to also balance out my overall portfolio with something not so risky as stocks and REITs.
2. Real Estate
This if something that I'm hoping to get into some day. Maybe not on a giant scale such as 50 houses but hopefully a few houses to get some rental income as another income stream. While I'm still debating on whether or not I truly want to get into the business of being a land lord, the thought of adding rental income as another stream of income is really an interesting one. I know there are ways to make real estate more passive such as hiring a property manager, which I'm of course considering, but it's just that I'm not sure I want to give up that kind of control over any future properties. For now though, I want to focus on other streams of income before I really get knee deep in real estate investing.
3. My Job
Can't for get about the most common of income! This will be my spring board into other streams of income and my primary income in the short term. Hopefully I can focus a while on this income source and get to a decent point where it can fund my other streams. Although, in the end, I do plan to hopefully phase this source out using the other income streams.
4. My Blog
I'm going to put this out there: I do hope to be able to monetize my blog properly one day! Maybe through advertising, or through affiliate market. I do hope that I'll be able to turn this blog into a decent stream of income. Maybe not enough to replace my job income, but enough to bolster my income altogether.
Of course, life happens. Maybe a few years later on, I'll become an entrepreneur and start a busy thus gaining more income through those means. For all I know, my above mentioned list might not even include everything I've mentioned! It might include all of them, or it might include none of them. After a few years this list might look completely different. Needless to say, I look extremely forward to how things actually unfold in the coming years!