Income streams - in the past, you could live very well on only one source of income - even if only one person in the family brought the money home. But those were the days of another generation. Today, things are very different. To be honest, I have never dealt with the issue. But during my studies and especially because of the financial crisis in 2008, I thought more about the topic of money. I would like to describe my current income streams here. I hope that I can provide you with a spark of inspiration and motivation. So let us get started...
Income stream No. 1 – Start-up Consultant
My main income stream is my professional job as a
Of course, I have been toying with the idea of going freelance - start-up consultant for a long time, but more on that later.
I have been at home in the start-up world since summer 2018, having previously worked in the banking and audit sector for years. Through my experience in this field and my network, I could and can support start-ups, especially in financing rounds as well as in the creation of a financial plan.
If you are working on a start-up idea yourself or need some advice, feel free to contact me. I am always interested in new contacts, because I want to constantly expand my horizons. The best way to do this is via
Income stream No. 2 – Stock Investing
You already got to know one of my passions in the previous section, now we come to another one ... stocks!
I have been interested in stocks since the financial crisis of 2008, when I wanted to find out what happened. It was very exciting for me to find out why everything suddenly collapsed. For me as a student (business student, yes, I know, another business student - in retrospect, I should have studied computer science) it just did not make sense that banks went bankrupt overnight and the world economy collapsed. Well, I did my own research and was shocked at what damage some investment banks caused just for the sake of greed (Watch the movie - The Big Short. Great film explaining what happened before the crash - some smart investors could guess in advance that something was wrong).
But at that time I met a new person (never heard of this person before - Sham on me).
During this time, a wise man from Omaha, Nebraska kept calm and invested in solid companies that were just available for purchase at a good price. This inspired me and I wanted to learn more about this man and his method. This man's name is Warren Buffett. I read his biography (written by Alice Schroeder) and heard for the first time the term value investing and about the forefather of this investment method named Benjamin Graham. I found out that Benjamin Graham had written two books. The Intelligent Investor and Securities Analysis. I bought both books and tried to emulate my new-found idols.
After some initial difficulties, I understood the subject and, thanks to my analytical skills, was also able to generate good returns.
During my studies, I started investing more money in stocks (not ETFs - only individual stocks - not much diversification) and invested most of my earned money (I worked as picker in a local warehouse during my study). Smaller amounts at the beginning (USD 100 – USD 200) and after my studies when I found my first job (rather USD 1,000 in one position – it was a huge amount for me). Today, I have a medium five-figure stock portfolio that has earned a total return of 13% annually over the long time. It is not enough for retirement yet or quit my job, but it is good to have a financial cushion. I managed to do that thanks to the value investing method and I can say that it is a lot of fun, but you especially need patience and a long breath.
Income stream No. 3 – Community College
This income stream came about by chance, which I would like to tell you about briefly. In 2017, I signed up for a Russian language course at the local community college. After one of the lessons (sometime shortly before Christmas 2017), I got into a conversation with my Russian teacher at the time about stocks. She said that it would also be interesting for others and why I could not offer a course at the community college. I was a bit sceptical at first, but she gave me the name of the person responsible in the economics department at the community college. After some time and discussions with those responsible at the community college, I was allowed to hold a course on stocks. I was very surprised by the rush, that so many people were interested in the topic was new to me.
After a few sessions, participants asked me if there was a possibility of getting private coaching. That was the real kick-off of my third income stream – private coaching. Everything I have learned about investing in shares, I offer since the end of last year, interested private investors in a 1x1 coaching. Here I would like to help people to deal more intensively with the topic of stocks, fundamental analysis and the value investing method and thus build up their own stock portfolio.
Income stream No. 4 – Affiliate Marketing
Affiliates are a nice income stream. To be honest, I could advertise products like current accounts or securities accounts more aggressively here. But I don't want to overwhelm my readers and customers with affiliate products. You get so much spam in your email inbox already; I do not want to be another one of them. The bottom line is that I only get about USD 300 a year in my account. Yes, very sad actually, as so many others already list that as one of their main sources of income. But this small sum can well finance a small holiday, and that's very nice from my point of view.
Income stream No. 5 - Property-Backed Loans
Estateguru is a little different from the classic real estate investment platforms and that is exactly why it is so special.
Here, investments are not made in consumer loans or corporate loans, but rather in real estate projects. You can participate in larger projects from as little as EUR 50.
The income model is also different with Estateguru: While almost all investment platforms credit your account with monthly income from repayments and interest, with Estateguru you only receive your income at the end of the loan term.
I started investing in property-backed loans in 2018 as I was looking for alternative assets. In the process, I came across Estateguru. It was clear to me that I did not want to invest in consumer loans, but in real estate loans. It was no problem for me that Estateguru mostly finances real estate projects in the Baltic countries. I often travel to Lithuania for business and pleasure and know how rapidly the region is developing there. Therefore, I made the decision early on to invest some capital in individual projects there. To be honest, I did not invest very much, about EUR 2,000, because most of the capital is tied up in shares. However, I wanted to test how the investment would develop.
In the screenshot, you can see how high my annual return is (as of - 18 June 2022) after just under 3 years. Overall, I am very satisfied with the overall result. Unfortunately, the current situation (Corona pandemic) has also caused some payment delays on the part of the borrowers. At the moment, I am still waiting for a sum of just under EUR 150 that still has to be paid back. Then I would have my total investment of 2018 including interest back.
I can recommend Estateguru, as I am particularly satisfied with their service. As an investor, you get good advice there. They even have an English-speaking contact person who rushes to help you if you have a problem.
If you decide to use Estateguru as a source of income, please read the following text:
If you use
Before you decide to invest in real estate loans through Estateguru, I would like to point out that investing in property-backed loans also comes with risks. Foremost, you can lose your total capital if a borrower gets into payment difficulties. It has not happened to me yet, but I just wanted to tell you at this point.
Further income streams in planning
Now, you have already learned about my current income streams, but I would like to introduce you to my other ideas.
Above I have already reported on my current main income stream, the job as a start-up consultant. In the near future, I would like to pursue this as a freelancer. First I would like to find out how big the demand for my services is, if it turns out to be positive, then I will deal with this more intensively.
The second idea is to create an online course on the topic of
Finally, I cannot get rid of the thought of founding my own start-up (with the right team) or investing in one (with the right founding team).
However, since I cannot realize all projects at the same time, I will deal with the respective ideas step by step.
My final thoughts
My final thoughts on why it is so important today to have more than one source of income - simply put: independence.
You do not have to rely on just one source of income, especially if you only have one, and it breaks away, then you're literally sitting on the street. In addition, we certainly do not want that. Therefore, it is very important to think about other sources of income. It is not important in the first place, whether it is an active or passive source of income, the main thing is to have other sources.
As already mentioned in my detailed report on my income streams, it is important to stay on the ball. Every beginning is difficult. Nevertheless, you should just do it. Start with your skills - turn them into money! For example, work part-time as a freelancer and build a second leg to stand on.
I am always working on this too, because I want to have more time for my family and I have been dreaming of studying archaeology and history since I was a child. This is exactly where the extra income can help. It can make my dreams come true, and your dreams can also come true through active as well as passive income streams. Now you have a wide range of possibilities already learned from me, offline as well as online. You should, if you do not already have at least one other source of income, choose a first one that suits you. Focus on this one until you master it perfectly or generate good income. After that, choose a second and third one.
It is also important to generate additional income from several sources so as not to be dependent on one. Your independence is at stake. Go your own way and realize your dreams.
I wish you much success!
Your Alexander Kelm