Financial Impact with Holly Morphew, AFC® Financial Coach

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Wealth Building: The Blueprint to Financial Independence with Multiple Income Streams

How To Build a Strong Stream of Income – Make More Money Now

Today’s Economy Requires a Different Strategy to Build Wealth

In today’s ever-changing economic landscape, securing your financial future has never been more critical. As a financial coach, I am seeing rising costs in healthcare, housing, and education, not to mention, inflation, making it increasingly challenging for individuals and families to maintain a comfortable standard of living on a single income. Having a least one additional stream of income can make a big impact on your financial security today, and multiple income streams can mean the difference between achieving early financial independence or working into your seventies.

Three Types of Income Streams

There are three types of income streams you can create: active, residual, and passive. Active income streams involve your active participation, such as a job or any work that requires your time in exchange for payment. Residual income streams require an initial or incremental investment of time, effort, or capital with a payout that lasts long after the investment. And passive income streams require little to no activity at all to get paid.

Wealth Begins with a Job

Most people begin building wealth with their full time job, and this is a great place to start. The security a job can provide gives you steady income to support your current lifestyle. But if you want more money, more assets, debt freedom, or a bigger lifestyle, adding another stream of income to what you are already earning is a powerful way to create more wealth and early financial independence. 

Add Another Stream of Income to What You Are Already Doing

To get started, consider what you have the capacity to add to your life in addition to your current job and lifestyle. Do you have time, unique skills, personal interests, or current resources that you can monetize? Make a list of how many hours you can spare each week to devote to creating another stream of income, your unique skills, personal interests, and current resources. These will help you evaluate additional income streams that could be right for you. 

For example, if you have an abundance of time, how many hours each week can you devote to learning a new skill which can bring in income? Or can you spend time creating a course, writing a song or book, or building a new business? If your personal interests involve playing an instrument, art, sports, design, or crafts, what are some ways you can make money doing things you enjoy?

If you are rich in resources, such as vacant land, an extra bedroom, cars, or lawn equipment, can you rent them out for extra money? In today’s internet-based economy there are more ways to connect with those who need what you are offering than ever before. Think Facebook Marketplace, Neighbor, Turo, Etsy, Fiverr, Upwork, and more. 

To Reach Financial Independence, Start Where You Are

Financial Independence is the point when work becomes a choice because the income you receive from sources other than a job can pay for your expenses. Some people call it retirement but the reality is that many people today do not have pensions like our parents and grandparents did, much less a career-long employer-matched 401(k), that will support you in your golden years. This is why we must start talking about how individuals can create a path to financial independence by building their pillars of wealth, and creating additional streams of income is a great way to accomplish this.

Build Your Pillars of Wealth

The “Pillars of Wealth” are maximize cash flow, eliminate debt, save, and create residual income, in that order. By putting the money you have left over each month after expenses are paid toward these pillars, you are building wealth, which is a state of positive cash flow and positive net worth. Residual income is built by contributing to retirement and investment accounts, as well as creating additional income streams. 

Additional Income is a Winning Strategy to Build Wealth

Whether you are seeking more income to eliminate debt, boost savings, take more vacations, or retire early, creating additional income streams is a winning strategy to create both wealth and financial independence.

Your First additional Stream of Income: Keep it Simple

Using myself as an example, I created my first additional income stream in 2005.  Because I was already working a full time job, I knew that whatever I did must have the potential for a high return with few hours of active work. I looked at how I was spending my time and found I was watching 5 hours of TV each week. I thought that if I could swap watching TV with an income-producing activity, that would be a win.

MLM or Direct Sales

I found a great company called Arbonne that aligned with my core values of sustainability and positive impact. They had a turnkey program to create income right away and my start-up cost was only $79. Their business model is Multi-Level Marketing or Direct Sales. I didn’t have to buy or stock inventory, and clients could purchase their products directly from the company. I actively built a business alongside my full time job and still get paid today for those efforts. This “extra income” sustained me through the recession of 2008 and helped me pay off my car and crush debt. Today, this income stream is purely passive. 

Affiliate Marketing

Later, I invested in a e-course to learn about affiliate marketing. I chose 3 great companies to partner with and created a blog. This was my first residual income stream, where I actively wrote articles, created an email list, and marketed their offerings for a period of time, creating automated email campaigns and providing education and value to an audience who needed their service and wanted to hear what I had to say. 

Grow Your Money in a High-Yield Savings Account

I “store” my money in high-yield savings accounts. The yields offered by online banks are higher than what brick and mortar banks can offer, and are highly liquid which means it’s easy to access to your money. In addition, these accounts are FDIC insured and yields are guaranteed, making them a safe bet for growing your money. Finally, I would be remiss if I didn’t mention that with high yield savings accounts, you can take advantage of compound interest! Your earnings, while still taxable, become purely passive income. 


Consulting, coaching, and freelancing are more active streams of income, but the upside is you can make your own hours, your own programs, and work with clients you choose. If you have a skill, this is a great way to monetize it. There are infinite opportunities for work when you have something of value to offer others. 


Speaking is a great way to get paid for a message you have learned in life. Do you have a story that can inspire, entertain, or teach others? Speakers have the potential to make thousands of dollars per talk and the opportunities to speak are endless, both online and in person.

Real Estate Investing

My first income-producing property was my first home. When I moved out after living in it for many years, I kept it and rented it. This purchase was my first significant source of residual income. There are many ways to invest in property. This strategy is one of many.

Mineral Rights

I also bought a property that included mineral rights. These are legal rights that grant entities or individuals the authority to explore or extract from the minerals beneath the surface of a piece of land. Most real estate transactions only include surface rights, so it’s important to be clear that the property you are purchasing also includes the mineral rights, if this is an income source you are considering. It’s also important to note that even if you do secure mineral rights on a property you have purchased, getting paid for any extraction of the minerals is not guaranteed. Always do diligent research before making any investment decision. 

Paper Assets Such as Retirement Accounts, Stocks, Bonds, and Mutual Funds

If you have time on your side, you can easily create residual income to support you in retirement by contributing to tax-advantaged retirement accounts and investment accounts consistently for a number of years. Many people prefer the ease of investing in the market and contributing to retirement accounts to buying property or owning a business because it is simply an act of choosing your investments and funding them with the click of a button. 

As an example, a retirement or investment account with a monthly contribution of $1000/month for 30 years can turn into $1.2mm with an average return of 7%. You can do this math for yourself using a compound interest calculator. There are dozens of free compound interest calculators online. 

Of course, retirement accounts and investment accounts come with tax implications and market volatility, so it’s important to understand this before you invest. This is also the reason that when it comes to building wealth, we create financial security first so that in the event an investment doesn’t give you the return you expect, you have positive cash flow, no high interest rate debt, and savings to fall back on. 

Purchase or Start a Business

If you have capital, you may want to consider investing in a business that has the potential for monthly cash flow. This is an example of using money you have saved or acquired to create residual income. 


In 2021 I published a book called Simple Wealth: The Practical Guide to Transform Your Relationship with Money and Live in Abundance. It quickly became a best seller on Amazon and was listed on Bankrate's top ten personal finance books of 2022. Along with the book came royalties, which are passive income. You can also earn royalties on songs and other works of art.

More Ways to Create Additional Income

For more ways to earn additional income, get my guide for 111 Ways to Earn Additional Income This Year! 

author avatar
Holly Morphew AFC®, Award–winning financial coach, author, global speaker, and multi-generational entrepreneur
Holly’s own journey to eliminating $67k in debt in her twenties, reaching financial independence in her thirties, and creating 11 streams of income are what inspire her to help others live their wealthy life.
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