We’re going to make a prediction that the majority of people reading this have no more than 2 sources of income, namely from employment and your investment portfolio. Have you ever considered yourself as an entrepreneur? The English Oxford dictionary defines an entrepreneur as “A person who sets up a business or businesses, taking on financial risks in the hope of profit”. The part of that definition that sings to us is the first half, and the good news is that you don’t need to start a multi-national corporation or an innovative tech company to create an alternative income source for yourself.
One of the most important rules any seasoned investor will tell you is to diversify, diversify, diversify to manage your risk. It’s the same with your income. With all of your commitments, family and future goals on the line, should you really only rely on the money you receive from your day job to support that? Other than the obvious benefits of having more money in your pocket, an alternative income stream can act as an insurance policy in case your employer makes some unexpected changes. And if you think you’ve got even a little bit of an entrepreneurial spirit in you, you can do it for the outright fun.
Let’s talk about 5 alternative income sources you can get started with today.
What are you good at? What do your friends and family come to you for when they need a favour? What has been a lifelong hobby of yours? The truth is, most people don’t realise they have something unique to offer and will cross off the possibility of a side hustle almost immediately. You might be a fantastic swimmer; adults and children alike both want to learn how to swim and you could be the person that leads a class to help them once a week. Or maybe you have more technical skills than most, we’re sure if you walk down the high street in your local town you will find some independent businesses in need of a website, social media presence and help with SEO. If you love to paint, try selling some of your beloved pieces of art online. There are literally 100’s of side hustles you can start up today with little to no cash required.
Since the dot com boom, millions of people all over the world have started blogging about a variety of different topics and industries. In finance, some make a comfortable living by blogging about their experiences in investing in different types of assets and platforms. Most companies have what is called an Affiliate Program, which compensates people for referring others to their business whether it’s through a blog or even just to your friends and family. This is the same for most industries including fashion, transport and accommodation to name a few.
Sell your stuff
Introverts might shudder at this, but fear not. Traditionally people went to markets, festivals and events to set up a stall and sell a variety of things to those in attendance. Thankfully, a few bright sparks had the idea of setting up companies like Ebay, Shpock, Gumtree and Osta to sell anything from the comfort of your home. Take a look around your house this weekend, are you going to hold on to that smoothie maker you’ve never used for the next 10 years or sell it to get some cash?
Airbnb, Uber, Task Rabbit, you’ve heard of them all. Despite this, most of us stay on the consumer side of the transaction and let’s face it, they are great services. It’s a great opportunity for anyone with their own place to become a host, even if it’s once in a while when you’re planning a weekend away. Business Insider has compiled a list of 25 places you need to visit in 2018, do you live in one of these places? If so, then this year might be a great time to start and capitalize on a growing number of tourists in your area. With companies like Uber and Taxify, you could try working only the busy periods like Saturday nights or the morning rush hour to make the most of your time.
We expect most of our readers to already be doing this, but it’s worth mentioning. Whether it’s in P2P, real estate, stocks or something else, generating a monthly income from your investments is a very real possibility that you should take advantage of. Recently, we wrote a post on how this is possible in the miracle that is compound interest and the importance of setting goals in achieving financial freedom.
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If you’re serious about increasing your income, you could even try putting all of these sources together and make a significant change to your financial standing. If you’re already doing this, we’d love to hear how it’s working for you. Leave us a comment below and let us know how many alternative income sources you have.