Financial experts have often stated that the best way to save money is to use the principles of compound interest. However, the best way to increase your savings is to have an increase in your income. If you are wondering what we are talking about, it has nothing to do with approaching your boss for a raise. Here are the top ways you can diversify your income stream.
Diversifying your income means receiving income from various sources by performing different types of jobs, gigs or freelance work or income from some other sources like rent or commission.
Diversifying income doesn’t mean making multiple complicated investments; it could just mean doing whatever you can do with your skills and even within your already existing network of friends and family.
“Establishing multiple income streams doesn’t need to be daunting — it just needs to be strategic. Now, this isn’t about juggling wildly random gigs. Rather, it’s about dividing a pie, examining the work that you do and finding ways to parse it out and create stand-alone streams,” Novelist & Marketing Exec Felicia C. Sullivan said in a Medium online post.
Substantially diversifying your income streams should help not just your income grow, but also your professional portfolio and while you are at it – your personality too.
“Your career is reliant on two factors: expertise and experience. Determine how you can sell your head or logical spinoffs of the deliverable (i.e., the thing you make or create), and consider how and where you can distribute those offerings. You can sell how to know the thing and how to make the thing,” She adds
This could work for you if you are already in professional work and an expert in a particular niche. Scoring some consulting work on the side could mean more money and more experience. Look online for opportunities while also telling your friends and professional contacts you are available for professional consulting work if they approach you with any questions.
This could work for just about anyone. If you are an expert in a niche then you are more likely to get work, you could also pick up work online writing random articles for websites or writing posts for blogs.
This is not easy to come by since there is a lot of investment required. However, remember that owning a property is a great investment, and the rental income that comes from it could be an excellent way to diversify your income.
This idea has more than a million ways it can be executed. What you sell, how you sell it, and where all depends on the type of product you are planning to sell. Thanks to technology, there are various platforms you can use to sell your products. Whether you are going to sell handmade things on Etsy, books you have already read on Instagram or cookies you baked at the local farmers market, it is still a great way to diversify your income.
Turn Your Hobby Into an Income Stream
If you are into sports, you could consider private sports coaching. Can you sew, knit or draw? Consider using your talent to make things that can be sold online or at flea markets.
Pick up Extra Shifts at Work
We kept this one for last on purpose. All ways of diversifying your income needn’t have to do with using skills that you may not already have polished. If you work retail or at a place where picking up extra shifts will bring in more income, then that could also be one of the easiest ways to make more money.
Have you heard about the ‘CB OR MMM ‘ method to deal with debts?
It expands into “Cut Back or Make More Money”. Why would anyone want to cut back when they can make more money.
We hope you utilise our ideas to make more money and diversifying your income also helps you save better.