How does recurring revenue work for you? Why is it so powerful to those seeking financial independence? And, just as important, why is it cherished by those wanting to stay #FI after they retire?
I like having multiple revenue streams, and I love income streams that create recurring revenue. Set them up once and get paid over and over again. I believe that is the key. Get paid over and over again for something you do once and spend little time managing in the future. For example, we spend 10 minutes setting up the DOSH app to get extra cash back at places we already shop. More money than you get, unless you too have this DOSH app.
[Review DOSH app here for those interested in saving more.]
Recurring Revenue Defined
Recurring revenue is income that repeats in the future for something you did in the past. It is predictable income you get whether you continue working or not. And, it is income you continue to receive for an extended period of time. Recurring revenue doesn’t require a lot of your time once it is established. But, it usually requires some management time, albeit limited in most cases.
My goal is to create multiple income streams, the majority of which produce recurring revenue. And, I’ll continue adding income streams until my recurring revenue exceeds my work income. But, that’s not easy to do in a short period of time. It often takes multiple, relatively small income streams that accumulate. It is what I like to call, “Income Stacking,” which I’ll explain below. First, what types of activities create recurring revenue? There are numerous.
One example is subscriptions, such as the auto-renewal policies setup by Microsoft Office 365, Norton anti-virus, Apple iTunes, and so on. Paid subscriptions that auto-renew are a good source of recurring revenue for everyone. However, they’re not easy for everyone to create. There are more accessible recurring revenue opportunities for you and I. Here are a few my wife and I enjoy today:
Online Savings Accounts
(recurring monthly interest income)
- Barclays Online Savings
- Discover Online Bank
- Capital One 360
- Citi Bank Online Savings/Checking
Dividend Paying Investments
(recurring monthly/quarterly income)
- Vanguard (Roth IRA, Traditional IRA, SEP, Solo 401(k), Money Market accounts)
- Etrade, etc.
(recurring rent payments, monthly principal payments)
- We own two rental properties
(best wealth building investments over time for us)
- DOSH App (highly recommended, see my review DOSH app here)
- Blue Host
- Personal Capital (get $20 now by signing up, free account; we use it)
- Technology Used by Successful Businesses
- Google AdSense
- GoDaddy Reseller – we setup an account for our business. It allows our clients to purchase hosting and domain services from my company. GoDaddy makes you pay for the service, but they do the billing, customer support, etc. Since we design websites for our clients, it is a win-win. Our clients get to call us for help plus they get tech support from GoDaddy.
- Insulate your home (recurring savings)
- LED lighting (recurring savings)
- Hybrid Water Heater
(home owners; after tax rebate and savings, our water heater was free after 3 years)
- Solar Panel Investment (recurring savings): Solar Panel System Investment for Retirement Low-Risk High Returns? We all love to cut expenses, save money and garner high-returns for our retirement savings. One smart thing to do is cut our utility costs and invest the savings in our retirement account; month after month. Did investing in a solar panel system come to mind?
Credit Card Management
(sign-up bonuses and monthly cash rewards)
- We make about $1,000 per year using this credit card strategy.
- AMEX Card (current winner for us in 2019)
- Chase Sapphire ($750 of travel credit in 3 months, another winner for us in 2019)
Not so common income
- Nielsen tracking – they pay you to add tracking software to your phone and computer. We get a $25 gift card every 4 months or so from the program. No difference in the performance of our phones or computers. It is easy money, albeit limited recurring income; about $6/month but opportunity to win $1,000 in their monthly sweepstakes)
- HealthyWage – I signed up for a bet and I’ll let you know how it goes; on track so far! You “can” get paid to lose weight. You bet on yourself; 30-40% return possible for getting healthier. If you don’t lose weight, you do lose money; that’s why it is a bet.
- Sell Stuff – we sell something almost every month. We have a bunch of stuff we never use and really don’t need any more. Clean out your closets, the garage, and your storage areas. We’ve sell, on average, about $100 of stuff per month. We sold over $1,000 worth of stuff last year through garage sales, Craig’s List, Nextdoor, and Facebook marketplace.
- Start a business (my wife and I own a consulting company; AIM Custom Media)
- Dog Boarding, Dog Walking, Pet Sitting Business (we just started a Rover business this month)
- Endless number of side hustles
I ran across the term, “income stacking” while researching new ways to create recurring revenue. Basically, it means creating multiple small revenue streams that “stack” on each other. Say you get $6/month from Nielsen, $20/month from Google AdSense, $200/month from Rover, $100/month in dividends, and so on. Before you know it, your recurring revenue from multiple relatively small revenue streams becomes more than your paycheck. That’s the goal!
Thanks for stopping by. Please leave a comment and let us know what you are doing for recurring revenue – #FIDO.
Additional Recurring Revenue Resources
- HealthyWage (get paid to lose weight; I’m doing it now!)
- Pet Sitting Boarding Walking – Rover
- This full-time lawyer also has 13 side hustles. Here’s what he’s learned