In today’s economy, chances are it’s impossible to get by with a single income stream. Gone are the days where securing a steady job meant a golden handshake and a comfortable retirement. Instead, growing debt and rising costs of living mean that many of us may be forever trapped by debt.
Alternative or secondary income streams are derived from activities outside of full-time employment. Besides allowing you to earn more money, alternative income streams enable you to diversify your risk.
For example, if you lose your current day job, your alternative streams of income will keep you on your feet until something else comes along. With that in mind, we take a look at 5 easy ways for you to set up secondary streams of income.
1. Earn Higher Interest on Your Savings
One of the easiest ways of growing your income is to start making your savings work for you. Letting your savings languish in a bank account with a pitiful rate of interest is a waste.
Take the time to shop around and search for banks with competitive interest rates. In today’s low-interest environment, some may say that this is easier said than done but the fact is that many banks are more than happy for your business. All you’ll need to do is to pay a visit to your local bank and speak to an advisor.
With a little groundwork or a Google search, you’ll be able to make a list of banks and their interest rates. Making your savings work for you allows you to have a steady flow of income each month. Passive income streams allow you to build up your savings without any effort on your part.
2. Start Selling Stuff Online
Trading is one of the oldest forms of commerce in the world. With the internet, merchants from all around the world are now more connected than ever before. In the past, one had to travel great distances to trade; now anyone with an internet connection is able to buy and sell goods with just a click of the mouse.
Websites like Amazon, E-Bay, and even Facebook, will allow you to start selling your products. However, before you start, it is crucial that you perform some market research. The e-commerce industry is fiercely competitive with many established players and you’re likely to run into some competition.
So, instead of competing with the big boys, it is best that you tap into an existing niche in the current market. Niche markets are a small but profitable segment in the market which has not received any or much attention from competitors. If you’re able to target a niche in the online market, you’ll be able to start making a fair amount of money.
As e-commerce does not require any physical presence, you won’t need much capital to get started. Finally, as most communication is online, you’ll be able to work on your business during your free time.
3. Sell Your Skills Online
It’s a known fact that many businesses have taken to outsourcing jobs to freelancers. So why not consider taking part in the gig economy?
From copywriting to programming and even web design, freelance work allows you to earn extra money on the side while building your skills.
Freelancers are usually free to dictate their own working hours so even if you have a full-time job, you’ll still be able to complete freelance jobs on your off-hours and rest days.
However, freelance work can be demanding and time-consuming. Along with this, it takes months or even years of commitment to secure a steady stream of work. So, it’s best that you manage your expectations and don’t quit your day job just yet.
4. Think Outside the Box
So far, we’ve looked at some common methods of developing alternative income streams. To truly achieve financial freedom, one needs to think outside the box.
In Malaysia, a woman was able to earn upwards of US$100,000 per month by selling nasi lemak (a Malaysian delicacy) by the side of the road. The owner of the stall realized the potential of her little business and took it to the next level.
While you may not be a skilled chef, there are still ways in which you can earn a tidy income with some creativity. Horse racing for example, allows a punter to quickly earn large amounts of money in a short time with little effort. All it takes is some analysis, maybe taking time to look into free live horse racing streaming, and a bit of experience.
Do take care to not overcommit yourself or you may burn through your hard-earned winnings.
The road to financial freedom may be a long one, with determination and grit, you’ll find a way.