Diversify Your Income in 4 Ways
It’s a fact not many people can (or want to) make their living by selling one product. This means diversifying your income is a must, yet many swear it can’t be done.
If you want to craft the lifestyle you want for yourself and your family, diversifying your income is necessary.
So, how exactly do you diversify your income? Glad you asked. Here are 4 ways you can diversify your income:
1. Diversification is Key
Uncertainty has always been part of the equation for striving towards a sustainable and prosperous future. However you define success these days, diversifying your sources of income is the way to go. A wise man once said:
“It is not the strongest of the species that survive; it is the one that is most adaptable to change.” — Charles Darwin
Always remember the saying: Never put your eggs in one basket.” Take it as a mantra for every time you set aside a portion of your paycheck for investments. Investing can take various shapes or forms; they can be in the stock market, real estate, crypto, etc.
When it comes to the stock market, you need to understand the patterns, the nature of how these markets work, the types of stocks available, which one you should get, and when to get them.
If you’re a starter like I was in 2021, I suggest researching and studying how to invest. A great start is to read the infamous “Intelligent Investor” by Benjamin Graham and watch Youtube video tutorials. I highly recommend checking out Ali Abdaal, Nate O’Brien, and Humphrey Yang to start things off.
Start with ETFs (Exchange-Traded Funds) such as VOO or VTI that essentially imitates the S&P 500 (taking a slice of each of the 500 top US companies), tracker funds, blue-chip stocks, and perhaps Property Crowd Funding Projects.
Note: Always do your research and understand the risks before you choose to invest.
2. Start a side hustle
Side hustles are often the easiest way to start earning more money. You don’t have to quit your job — you simply take on an extra project outside of your regular working hours.
Such as driving for Lyft, taking care of other people’s pets on Rover, or working as a freelance on Contra (like me).
The most successful side hustles are the ones that align with your interests and play to your strengths (for example, if you’re a good cook, consider doing meal prep work).
In addition, be sure to choose a side hustle that allows you to set your own schedule and doesn’t require you to be physically present at someone else’s office during regular business hours.
This will ensure that you can build a healthy gig without interfering with your primary job or family obligations.
Though it will take quite the time, energy, and effort to build, trust me, it’ll be worth every minute.
3. Utilize your network
You know when they say: “Your network is your net worth.”? Well, they really meant that one. Behind every great relationship, partnership, or team, is one brick, a brick called trust.
The thing about building great relations, especially business relations, is that it takes time and trust. Rome wasn’t built in a day, and neither did long-lasting relationships.
Little do you know that those lunch break chats with your high school friends, coffee break with your colleagues, or simply striking a conversation with a stranger can take you to places.
Spend time networking on social media. You may have heard it said that social media is mostly about self-promotion.
But the fact is that most people on social media platforms are not there purely for self-promotion; many are just like you — small business owners who enjoy connecting with others in their field or who want to learn new skills and ideas.
These professionals are often actively looking for new sources of expertise to use in their businesses and places they can advertise their products or services. Who knows they might be looking for someone with the expertise you already have, right?
4. Manage your debt
Paying off debt is always a wise move, but it’s even more critical when you’re earning extra income outside your day job.
Start paying them off by either going for ones with the higher interest rates regardless of the amount or ones with the highest amount irrespective of the interest rates.
Eventually, you’ll have more funds at your disposal to put toward payments each month, which will help chip away at the principal faster than if you were spending that money on daily expenses and other items.
Diversifying your income
Ultimately, the key to diversifying your income is not to think of it as a choice but as an obligation.
You owe it to yourself and your family to build up multiple streams of income so that if one of those streams of income all but dries up, you’ll still have others pouring in revenue.
