Relying only on your day job for income is a very dangerous position to be in. What would happen if you lost your job tomorrow? Would you have anywhere to turn? How would you pay the bills?
While you might think your job is safe, the truth is we’re still in a down economy and you never know when then next job cuts will be rolling around.
Instead of being stuck and scared in the event that something would happen to your job it’s better to be proactive and create more sources of income.
Here are six ways you can do it.
A Side Hustle
The number one way to safely diversify your income is to have a side hustle.
A side hustle is simply another way for you to bring in money other than your day job. It’s also generally a lot more fun than having a day job. You get to pick how you want to earn, depending on your hobbies and skills and work your side hustle into your schedule.
If you’ve ever thought about becoming self-employed this is also a great way to test the waters.
You can also use the income you pull in from your side business for one of these other ideas.
Building a portfolio of dividend stocks is another great way to add to your current income streams.
Dividend stocks pay out a dividend (a small percentage of the stock) on a regular basis. In order to pull a significant income from dividend stocks you’ll need to have a lot of money invested. You can grow this a little at a time and make sure you diversify your stock choices.
Certificates of Deposits, or CDs, used to be a safe way to bring in additional income. Times have changed.
The interest you earn on CDs is now very low but since it’s still higher than what you’d earn in a savings account we decided to add it to the list.
Rental properties are a tried and true way to build wealth, both long and short term.
There are several things you need to account for when purchasing rental properties. Things like maintenance, vacancies, property taxes, and insurance should be factored into the rent you charge if you want to maintain a positive cash flow.
If you can amass several rental properties with positive cash flow you can build a full time income for now and a retirement income for later.
Looking for a semi passive way to diversify your income? Earning money off of royalties could be the solution!
You can sell an eBook, photography, and even music for royalties. The great thing about this option is that you do the work once and can keep pulling income. However, that doesn’t mean there’s no need to promote your work. The more you promote the better your sales will be.
Become a Serial Flipper
In my opinion flipping items is one of the most fun ways to earn extra income. And you can do this for virtually anything!
Just find a product that is undervalued, buy it, and then turn around and sell it for a bigger profit. You can look at yard sales, flea markets, Craigslist, and even the clearance section of retail stores.
Once you find what you’re going to flip sell on a place like Amazon, Facebook Yard Sales, eBay, or Craigslist.
Just be sure to start small and get the hang of it before putting too much money into this option.
What’s Your Favorite?
Diversifying your income, no matter which route you choose to go, will help you solidify your financial plan, provide you more money to put toward your goals, and keep you safe in the event you’d lose another income stream.
Do you diversify your income? If so, how?