Having multiple sources of income offers financial stability for current expenses and can help earn funds for future financial goals. While having additional money flowing into your accounts is beneficial, it may require extra time and significant dedication to support more than one source of income. Some passive income options require less ongoing effort to maintain. Review your income options based on the earnings potential, stability and the amount of time.
Hourly or Salaried Job
Establishing an income strategy usually relies on having at least one hourly or salaried job. The job may be part time, full time or seasonal. The type of job and the amount of time dedicated to this income source may limit your options for adding additional income opportunities. If you rely solely on a traditional job for all of your income, you may face financial difficulties if you are fired, laid off or restricted from working your full schedule. However, a traditional job offers benefits and potentially a more stable source of income than other revenue generating activities.
Investments into stocks, bonds or other financial instruments can enhance your financial portfolio. The amount of risk involved varies with the investment. Earnings fluctuate based on interest rates, the growth of the underlying investment and the overall economy. Short-term investments may incur more taxes, lower returns or higher risks. Long-term investments have time to balance out temporary market fluctuations, but may take time to return funds and you may be limited in your access to the money. Earning money through investments may be based on the appreciation, growth of an asset or dividends and interest payments.
A hobby can be used as an additional source of income. Crafts, woodworking, sewing, collecting and other activities can produce items that can be sold online, at craft fairs or at local stores. You need to invest time to determine the best market for your goods and to generate sales leads. Ensure you price your goods or services high enough to cover your costs and a fair return for your time.
The Internet has opened new options for income. Writing articles, customer service, selling photos, taking surveys, answering questions and selling goods can all be options for online-based income. Some options require formally applying for a position, some may only require a sign-up and other options may require establishing websites or setting up a home office. Pay may be a set fee for your services, or you may be paid on a sliding scale based on your sales volume or a revenue share based on advertising revenue.