- Date : 23/10/2020
- Read: 4 mins
Having a second source of income is no longer a cushy backup plan; it’s the need of the hour. Here’s how to action it.
While you may have heard of the importance of having a second source of income, in these times it’s really hit home. COVID-19 has made the world realise a lot of things, and not being 100% financially dependent on your 9-to-5 job is one of them. In July, about 50 lakh salaried people lost their job, and since April the count has been 1.8 crore. That’s in India alone.
Whether you’re one of them or you’ve faced a major pay cut, or you simply want to secure your finances and create income from other sources, here are some actionable ways to do so.
1. Build passive income
If you find yourself low on time and energy, taking up a second job that requires a similar amount of hard work and dedication may not be a great idea. In such a scenario, you should look at benefiting from passive income. This is income that requires almost no effort to earn and maintain, such as return from investments. Investing in the stock market, buying gold, buying property for rental income, etc. are some ways to build your investment portfolio, thereby creating passive income. It’s akin to making your money work for you and earn you more money while you go on living your life.
2. Teach an online course
Education is an industry that’s seen a major and sustainable transition online, and it’s likely to stay that way on a lot of fronts. It’s not just school and college children who study online; continuous upskilling and knowledge-building is something most professionals swear by as well. If you have some skills that you can teach in an online class – such as digital marketing, coding, nutrition, novel writing, etc. – you can look to partner with online learning websites or set up your own YouTube channel for the same and have a second source of income. The emphasis should be on teaching practical, industry-required skills and not merely bookish knowledge.
3. Monetise your hobbies
Do you know a foreign language like German or Mandarin? Do you design websites for your friends and families? Are you a baker in your free time? Do you have extensive knowledge of home vegetable gardens or sustainable living? If the answer is yes to any of these, set up a blog, a YouTube channel, or an Instagram account and monetise on these hobbies. For instance, if you bake well, set up an Instagram account for home-baked goodies and start by selling to your neighbours, family, and friends. Because of the pandemic, people are more willing to trust someone they know rather than a bakery chain. If you have a blog or YouTube channel, another income source can be affiliate marketing. The amounts may initially be modest, but consistency is key.
Related: 5 Proven ways to make money online
4. Become a silent partner
Being part of a business doesn’t always mean having millions and investing in an MNC. One can also invest in a start-up or help a local independent bookstore expand operations. As long as these are registered businesses and you see solid potential for growth, you can invest capital – but instead of giving the money as a loan, do it for a share of the equity and become a silent partner. You will not be required to take care of the daily operations of the business, but you will get a share of the profits, so it’s a win-win.
While these options are unlikely to give you significant returns in the short term, they can be promising sources of income in the long run. So, now is a great time to get started! Look at these 5 Ways to start investments even if you don't have money right now
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.