In today’s time relying solely on one income might not help you fulfil your dreams and achieve your financial goals. Just as you need to diversify your investments for better returns, you also need to diversify your income sources so as to not be dependent on one source of income. Whether you wish to create long-term wealth, plan your retirement or quite simply looking to alleviate the financial stress in your life, creating another source of income apart from your primary income can be a powerful way to boost your financial well being.
However, the biggest challenge is how you create a second source of income especially now where you are already slogging huge hours in a day in your current job. While generating multiple sources of income may look like a herculean task, but with proper planning and perseverance,you can actually generate a second income without having to put in too much.
Here is a quick guide for creating a second income stream for yourself:
Start your own blog
One of the most popular ways to earn money is by starting your own blog. Irrespective of how many people read your blog, the effort you need to put in creating content will be the same. So, even if you do not make money immediately, with time as the viewership of your blog increases, you will begin to start earning money gradually for your content. Once your blog is popular you can earn money from ads, sponsored content, selling products, etc.
Affiliate and referral marketing
You can earn commission income by promoting products of a company online through affiliate marketing or by providing a referral to the company. Every time the company sells through you, you earn a fixed commission on the sale.
Invest in stocks of companies
An investment made in stocks of various companies can provide you the opportunity of long-term wealth creation and can also provide you with a steady source of regular income. If you have knowledge and time to research, then you can consider investing in stocks of various companies, but do remember investing in stocks carry high risks also!
Invest in mutual funds
If you are not very familiar with the stock markets and unsure of which companies to invest in you can always invest through the various mutual fund schemes. Depending on your risk profile and investment objective you can choose mutual fund schemes most suited to meet your investment needs. By opting for the dividend option, you can create a regular income from your mutual fund investments. Mutual fund schemes can be relatively safer and flexible investment option and can be one of the sources of passive income.
Make your hobby your side business
If there is any hobby you are passionate about you can always use it to earn some extra income in your spare time. If you are passionate about photography, you can use this hobby for income by creating memories for others. This is one of the most rewarding choices not only because it provides you with an opportunity to earn from what you are passionate about. You can also take classes for the same. There are many people who take classes for cooking, drawing, dance, etc. for a few hours each day or over the weekend and make a good side income.
Become a tutor or trainer
If you have any inclination towards teaching then you can use your teaching skills to earn extra income by taking tuitions at home. You can conduct guest lectures and training in various institutes and colleges if you are looking at a more structured platform.
Create educational courses online
If you are an expert in your domain, you can create educational courses and sell them online and earn money every time some new user registers for your course.
Having a secondary income can be a great boon for your financial well being in the long-run. And for those who do not have sufficient time in hand to do anything else, you can always look at investing in financial assets like mutual funds, stocks and create a portfolio where your assets would earn for you.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.