My 8 Sources of Income at Age 25

Millennial Life: How I make and save my money

I recently had a conversation with my close friends discussing the importance of financial literacy and producing multiple streams of income. We don’t come from wealthy backgrounds, so getting involved and educated on entrepreneurship as early as possible will go a long way.

I personally started taking personal finance and entrepreneurship seriously approximately two years ago. My main source of knowledge comes from watching YouTube videos.

Below are eight ways on how I currently generate my income. I hope this motivates readers to reflect and improve their financial status.

Full-Time Job

I am currently employed as a full-time employee at a marketing and advertising firm in San Diego. I have been working in Paid Media for 4+ years. In the beginning, I was making a little above minimum wage. Now, my salary is considered middle-class. I plan to maintain my full-time job not only because I love it, but because it is my main source of stable income.

Stock Trading

I started day-trading on Robinhood early in college. I would buy stocks during a dip and sell when I made a slight profit. I probably made a 10% ROI on the money I invested. I soon realized it was an inefficient way of spending my time and energy. In addition, day-traders pay capital gains tax because they held stocks for less than one year.

I changed my investing strategy this year to buy and hold long-term. By doing so, my ROI increased by 25%+. I also may have been lucky since I invested in many companies during the big dip in March. I do trust that I will continue to see larger gains by holding long-term.

401k and Roth IRA

I contribute around 20% of my pre-tax income to my 401k account. I also max out my Roth IRA contribution each year. What’s great about a retirement savings account is that you can buy and sell stocks without having to pay capital gain taxes. I typically purchase Index Funds with my retirement savings accounts. My ROI fluctuates between 5–15% each year.

Real Estate Investing

I do not have enough capital to fully get into real estate investing, but I do invest some of my money with Fundrise. Fundrise is an online investing platform that allows you to invest in real estate for as little as $500. I am currently invested in about 50+ real estate projects around the United States.

I tested Fundrise for a full year and my investment generated an 8–10% ROI. One thing to note is that you must keep your money in this account for at least four years to avoid early withdrawal fees. Because of this, I only invest a small amount of my money with Fundrise. I do enjoy that the process is completely hands-off.

High-Interest Savings Account:

I keep the majority of my remaining money in a high-interest savings account. This is where I am saving money for a down payment to purchase a house. My emergency fund also sits in my high-interest savings account. My savings account interest rate fluctuates from 1–2% each year. I know it may not be the best ROI, but it’s the most liquid of my assets.

Selling Old Stuff

I will sell anything on Craiglist, Letgo, OfferUp, and Facebook Marketplace. This includes textbooks, furniture, and anything I no longer use. In my apartment complex, people always toss out their old furniture when they move out. I always take the furniture and sell it for 100% profit!

I also sell my clothes to Buffalo Exchange. They are a fashion resale retailer that buys and resells old clothing. Sometimes I would even purchase clothing with the trade-in credit I earned. I enjoy buying and reselling clothes because it's not only good for the environment, but I can make a little cash on the side. I have been selling at Buffalo Exchange ever since high school and probably made over $1,000 so far!

Food Delivery

I recently picked up this side hustle when COVID-19 started. Food delivery demand went up, so it made sense to drive for Doordash and Postmmates. On average, I made around $15–25 per hour depending on tips.

What I enjoyed the most about this job is the flexibility. I get to set my own hours and determine how much I wanted to work. I could work 20 hours one week and 0 hours the next week. I had full control of my schedule and no boss. Not to mention the great tax write-offs (mileage, car maintenance, etc.) from being a food delivery driver.

Writing

Writing on Medium is my newest source of income. I started writing on this platform mid-April of 2020. The first month I made $3. In my second month, I made $27! I hope to scale my writing side hustle to $1,000 a month.

I know this won’t happen overnight, but I am determined to write and create value for readers. I want to educate readers regarding topics I am passionate about. This includes business, marketing, writing, entrepreneurship, and productivity. So follow me if this is of interest!

Final Thoughts

I love learning, reading, writing, and talking about money. I believe dialogue is key to helping people improve their financial status. I also believe that everyone should focus on building multiple streams of income. That’s how the rich get richer.

I am currently working on my real estate license. I hope to add “buying and selling homes” as my ninth stream of income. Money is a personal journey and it never ends. I hope this motivates you to improve your financial situation. Good luck with your endeavors!

Thanks for reading! Let’s stay in touch.

This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.