Want to save more, become more financially stable and stop living paycheck-to-paycheck? The best way to meet all these goals at once is to diversify your income. The days when people worked a stable job for 40 years straight then retired happily ever after are long gone.
If you want to earn more, it’s best that you diversify your income and develop some passive streams of income as well. Here are seven different ways to diversify your income.
1. Real Estate
Investing in real estate is a popular and effective way to establish an additional stream of income that can potentially become passive. If you like the idea of owning properties or becoming a landlord, you should look into real estate resources to help you understand the business better and how to make a profit.
You may have to make some sacrifices if you want to get into real estate and you’ll need plenty of savings to purchase your extra property and be able to afford repairs and maintenance. However, if you find good and loyal tenants, you may not have much work to do on a monthly basis and you can still look forward to collecting money each month after putting a limited amount of effort forward.
2. Affiliate Marketing
Affiliate marketing involves promoting a third party product or service through a review, link or advertisement in order to earn a commission from any sale that is made as a result. Mostly bloggers or website owners who have a solid following benefit from affiliate income because their platform reaches more people.
After writing the initial review or establishing and embedding the affiliate links into content or an ad, your active work is pretty much done and you can earn income from any sales that your affiliate links generate in the future.
3. Direct Sales
If you like to meet new people and interact in person, you might be interested in direct sales. Tons of companies look for independent sales reps including Avon, Mary Kay, Stella & Dot, Scentsy, The Pampered Chef and more.
If you find a product line that you truly support and believe in, you can become a direct sales consultant for the brand and earn some extra money by building your own side business in your spare time.
4. Sell Crafts Online
DIY and Etsy creations are trending right now. If you like to create unique and functional items, sell your products online and let the customers come to you. The best way to market your items is to promote something that people need or want that can’t be found in a typical retail store.
5. Write eBooks
Becoming a profitable author has become easier than ever with the introduction of eBooks. You can publish your eBook free and sell it on Amazon, through their Kindle Direct Publishing service. To publish an eBook that sells, first determine a topic that you consider yourself an expert on and find a way to solve someone’s problem.
Then, create an outline and a deadline for the completion of your book. Run your draft by an editor and consider purchasing a few stock photos to include within the pages along with creating a cover image. Once you complete your book and list it for sale, you’ll just need to promote it so you can earn royalties. To maximize eBook income, some people create multiple eBooks or develop a series.
6. Offer a Service Outside of your Main Job
Having a good-paying main job is great, but I find that 90% of the time, most people have skills and expertise that they can offer others on the side to earn extra income.
My duties at my main job includes working at web design company doing copy writing and adding content and cool features to the websites my company creates. Last year, I decided to start utilizing my writing skills by becoming a freelance writer so I could earn extra money.
The extra stream of income has been nice and allowed me to save more, pay off more debt and have additional money to cover any unexpected circumstances.
If you’d prefer to stray away from the duties of your main job, you can offer any other services or skills you have to others whether it’s tutoring, babysitting, giving lessons, writing resumes, designing graphics, photography, etc.
If you are willing to contribute the time and money it takes to build up a strong investment portfolio, you could earn passive income from years to follow. Investment income is not immediate income as it can take several years to get to the point where your dividend stocks, bonds and other investments are working for you, but you can always get started sooner than later.
Investment income is one of the best and most passive forms of income so it’s definitely worth the wait once you get started. Even if you’re starting with little money, don’t let that hold you back. You can open an account with Motif Investing, for example, for as little as $250 to begin building a portfolio.
What methods do you use to diversify your income? What goals do you tackle with your additional income? What’s your favorite way to make extra money?