- Date : 30/10/2018
- Read: 4 mins
Diversifying your income sources sounds better than having just one. Let's consider some strategies to add extra income streams
For most women, freedom is about being financially responsible and independent. Having more than one source of income helps you earn more and maximise your potential. Also, multiple sources of income ensure more flexibility and freedom in your life.
Having a single source of income may seem enough if you earn well and have ample savings, but it can be restricting. For example, you may be unwilling to make monetary decisions for fear of jeopardising your income source. An additional source means you can not only breathe easy but also use the extra money to save, invest, or indulge yourself!
Let’s consider some ways through which you can start earning multiple streams of income.
First things first
Your primary salary is likely to be your main source of income. Everyone starts off this way; in fact, your goal should be to maximise your primary income so you soon have enough cash to reinvest. This reinvested cash can generate secondary income streams for you.
To maximise your primary salary, it is important to pick the highest paying job possible. Ask for a raise! It is important for you to be aware whether your salary is adequate for someone with your abilities and experience. One way to do full justice to your potential is to join a company that not only offers you a more competitive salary but does so on time.
Try to find a job that gives you enough time to take up other projects and generate additional sources of income. Ideally, your primary salary should be enough to cover all your expenses, while not overwhelming you to such an extent that you’re unable to find the time to pursue other income-generating ideas. A primary job with benefits such as health insurance should cover your crucial expenses. You need to consider these benefits while choosing a job.
If your earnings, expenses, and savings are in order, you can start looking at additional sources of income in comfort and confidence. Here are some ways to earn more:
1. Affiliate marketing
Affiliate marketing is the process of earning a commission by signing up with a company or an entrepreneur to sell their products. It calls for time and serious commitment. Say, you have your own tech website and opt to become an affiliate marketer for an antivirus company. By promoting the antivirus software you should be able to earn handsomely, especially if your website has a good number of visitors, or if you have many email subscribers.
Similarly, if you have a blog on (say) ‘beauty tips’, you could promote a brand in exchange for money. The only condition is that you must be able to generate sales of the affiliate brand through website traffic, email marketing, or social media. Decide if this is for you!
2. Freelance work
Freelance work is a suitable option for individuals who want to start their own business while holding a full-time or part-time job. There are many freelancing assignments that you can take up. For instance, you can start your own graphic or web design business, or offer content writing services. It enables you to hone your skills in a specific field and it can be a decent source of income alongside your primary job.
You could kick this off by putting a nominal amount every month in a systematic investment plans (SIP). Say, you can invest Rs 500 or Rs 1000 in mutual funds through a SIP. The fact that there’s no lock-in-period makes this investment even more flexible. There are other options too, such as stocks, bonds, ELSS, etc. which are a great way to earn more on your passive income. Consider hiring a financial advisor if you aren’t financially savvy.
4. Real estate
Before you can invest in real estate, you need capital in the form of cash or credit. You can buy property and later give it on rent and earn a good rental income. However, investment in real estate requires a certain degree of caution and due diligence. Rental income is a passive source of income whose only requirement is that you must be aware of the market conditions and developments in the real estate sector.
Generating passive income should be your first attempt to walk the road to financial freedom. There are other money-making avenues that need more attention and hard work, yet if you take the plunge the financial results can be rewarding. The idea is to recognise such additional sources of income and invest once you are comfortable with the plan. This way you can ensure a secure financial future for yourself and your family.
The basic idea, in a nutshell, is to diversify your income sources, so choose one or more of these ‘supplementary’ job categories and get ready to see your earnings multiply!