One of the main problems facing those that have multiple streams of income is managing them. You can start to feel a bit like a juggler and chances are, you may be neglecting areas that could be performing better and making more money. Focusing can be tough, but there are easy ways that you can keep track of your many income streams and make sure that they are all performing up to snuff.
1. Set aside a few hours every week to collect reports.
One of the main keys to staying on top of several income streams is to keep tabs on them every week. Set aside a few hours to focus on the returns and keep track of how each one is performing. You can use special software like Excel to make it easier to keep track of how each one is doing. The added benefit is that you can start to spot trends each week and you’ll know when it may be best to move on to a new opportunity.
2. Keep a paper log of all activity.
While it’s certainly find to keep track of everything on your computer, there is a lot to be said for keeping hard copies of everything. First and foremost, you may need these for the IRS and secondly, we read differently on paper than we do on the screen. You won’t run the risk of missing important information and you’ll have an easy copy for reference at any time. Don’t forget to make disc copies of all of your information as well. You should store your paper copies and your backup disc in a safe place that is fire resistant for extra security.
3. If necessary, minimize.
If you’re running too many streams at once, it can be nice for your bank account, but very hard to keep track of. Find ways to consolidate your income and reporting and if necessary, you may need to drop some of the streams that aren’t performing as well as others.
4. Get passive.
If you’re trying to manage several active streams of income, chances are you’re probably spread pretty thin. Try to diversify and add more passive streams so you don’t have to work so hard. Passive income is a lot more fun, and you’ll be able to spend more time on other things in your life that are even more important than making money, such as your family or hobbies.
5. Get some professional help.
If you’re just too swamped to manage everything on your own, or if you find that you have fallen behind, it’s time to enlist the help of a professional before it spirals out of control. Consider working with an accountant or a financial planner that can take some of the burden off of your shoulders for awhile. This is especially helpful if you are going through a period of extra work or you need to be able to focus on other areas of your life for a few months.
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