These days, unless you are earning a 6-figure paycheck from your job or business, living on one income is nearly impossible. Even if you are receiving sizable earnings from just one source, if anything disrupts it, you are bound to suffer. Think about all the people who lost their jobs due to the coronavirus pandemic. If they didn’t have other ways to make money, they definitely struggled during that period.
Financial experts recommend having multiple sources of revenue, but this is easier said than done. How do you actually increase your income streams?
Here are a few ways:
Many companies, particularly small ones, outsource much of their support or short term work to external consultants instead of employing full-term employees. Taking on freelance work allows you to capitalize on such work, giving you a new avenue to make money. A key benefit of freelancing is that you do not need to learn any new skills; you are simply practicing what you already know to boost someone else’s business for a fee.
Investing is one of the most preferred ways to earn a passive income. While they require capital and a lot of nurturing at the onset, after some time, your investments will only need occasional maintenance and it will continue to earn you a return for as long as you require.
Before joining any investment scheme, conduct your due diligence to ensure that it is legitimate and fits your overall needs.
3. Become an affiliate marketer
Companies are always looking for individuals with whom they can partner to sell more of their products. For every paying customer you bring a firm, you earn a certain, pre-agreed commission. This is the foundation of affiliate marketing. The biggest advantage of going this route is that you get to decide how much time and effort you put into the endeavour.
4. Lease some of your space
Space, whether physical or digital, is a highly sought after commodity. If you have some, consider leasing or renting it for a little extra income. You can earn by renting out a spare room in your home, leasing a parking space, allowing advertising collateral on your car, or letting a company advertise some of its products on your website, for examples.
5. Monetize a hobby/passion
We all have things we like to do during our free time. Kill two birds with one stone by monetizing such activities. The nature of the world is that there will always be someone willing to pay you for a certain product or service – if you can find him/her. If you feel like your skill level is not high enough that you can charge for it, take classes to improve it.
Diversifying your income stream will not only offer you financial security, it is also a chance to improve your skill set, grow your network and do more of what you enjoy. Keep in mind that some of these methods are more labour intensive than others, and you will thus need to find the perfect balance between passive and active income earners to ensure you do not burn out from always being on the clock.