In these uncertain times, a lot of people are beginning to realise that a single stream of income is probably not going to cut it. A nine-to-five job doesn’t seem that secure anymore. With businesses making job cuts and/or closing their doors, one has to wonder if there are alternative ways to create income. In that way when one stream fails or takes a hit then there is another way to generate income and stay afloat. Whether it be taking up part-time jobs or putting your skills to use there are several ways to earn the extra dollar. Here are some ways to diversify your income:
1. Diversify your investment portfolio
“Don’t put all your eggs in one basket”Tweet
Many people believe that investments are like taking a shot in the dark and all you can do is hope for the best. While there are inherent risks when it comes to investments there are many streams that vary in risk and reward. However, as the old adage goes the higher the risk, the higher the reward.
That being said, calculated risks based on research and expertise are the best way to go. Consulting your financial advisor on how best you can diversify an investment portfolio is always recommended. You could open a brokerage account and invest in stocks and bonds. This is the most time-consuming investment type but offers some of the highest yields.
Alternatively, you could consider investing in annuities, investment funds, retirement funds, or peer-to-peer lending.
2. Sell a product or service
Consumerism is a large part of our daily lives. Take advantage of this by selling a product or offering a service. One alternative is to join a third-party company and sell its products for a profit. Although with multi-level marketing companies you would have to find people to join under, this comes with its own challenges. If that is not for you, look around your home for things you don’t have any use for and sell them online on sites like;
- eBay and
- Facebook’s Marketplace.
Alternatively, consider selling your skills by doing freelance work on the side of your employment contract allows. Another great option is cleaning homes and tutoring which work too as they offer flexibility in most cases. If that is still not to your liking perhaps, gig work like driving for Uber or Didi can provide a more suitable option. We previously discussed other strategies in full in this related article that might be beneficial for you to re-visit.
Whichever selection you decide to go with the outcome or payoff you receive is dependent on how much time you invest in your venture.
3. Create a new or unique product
Think outside of the box. This is a great opportunity to showcase your ingenuity. Create a product that is not easily found in the market and can be sourced from individuals with a unique skill set. Self-improvement or ongoing education is on the rise. This is the best time to impart knowledge through educating others requiring a certain skill set.
“You can’t use up creativity. The more you use the more you have.”Maya Angelou
Look into launching a digital product or web-based course imparting your knowledge and expertise. Whether be it fitness and nutrition guidelines or a step-by-step course of the fundamentals of cake decorating, there is a course for everyone.
4. Create a passion product
This is for all the creatives out there. This is your opportunity to get your talents to shine. Passion products can be homemade bookmarks or personalised dog bowls. Once you have identified and decided on your product the next step is to locate where your niche hangs out online. This is usually the ideal place or platform to sell your items.
Whilst most prefer creating online stores or social media pages marketing their wear there is definitely an option out there for you. Sites like Etsy, which caters to the sales of crafts, handmade items, and vintage pieces is great place to sell your beautiful handmade jewellery or candles.
The key to a venture such as this is to think outside of the box. Offer the consumer a product that is unique and can only be sourced from you. Create a product that caters to a certain demographic; find your niche.
Alternatively, put a spin on an old classic or reignite nostalgia. Whatever you do if you execute it with passion and creativity it would definitely shine through.
Investing in property can be considered as diversifying your investment portfolio, however real estate comes with its own challenges. Becoming a landlord comes with a number of challenges and responsibilities and these include but are not limited to the following:
- Ongoing property maintenance
- Creating and maintaining a healthy relationship with your tenants
- Being a good problem solver. Providing fair & equitable solutions that favour both parties at most times.
You could always do it through an agency or create trust as well but it does little to negate the difficulties you might face. A lot of time goes into finding and screening tenants.
While property investment is one of the most secure ways of creating a passive income there can be a substantial risk of property damage from tenants.
However, if you are considering this method of diversification take into consideration the location of the property, the costs of upkeep, the income you are looking to generate, and the demographic you are looking to attract.
Most young professionals and students are more likely to rent spaces than other demographic groups.
So, whether you decide to create a passive income or be more hands-on, diversifying your income streams is the best way to create financial security. Most successful and/or wealthy people swear by this method.
If this subject is of great interest to you check out more articles that are in line with this topic on WatuDaily like 12 Daily Habits of Highly Successful People. Don’t forget to subscribe to Drop Talk Newsletter & Podcast to stay up-to-date with personal growth and inspirational insights.
Weigh your options and take an open-minded approach so that you don’t have only one source of income to rely on. Try different ways of diversification and find the one that suits you best. In the meantime, stay safe and make good choices.