Generating a second source of Income is a typical goal I am seeing these days in most of my clients’ and prospects data sheet. Even if there is no specific mention of the Second source of Income, the goal of acquiring 2 or 3 real estate properties, zero down to the ultimate aim of generating another income (Rental Income) stream beside salary.
This is something seen as a Financial security and a necessity towards the ultimate desire of Financial Freedom.
And they are not wrong even. This is what is done in the case of retirement planning when the regular income option is closed and one has to make arrangement for the passive income or another source of Income.
Diversifying the income stream is crucial to protect yourself and your family against the unavoidable ups and downs of economic and industry cycles.
There is no doubt a financial risk in depending on the single source of income, such as a job or a business, and if possible, one should consider creating at least one or more additional streams to generate cash flow.
But all this is easier said than done. When one starts looking at second source in the working life, then that calls for an understanding of the avenues and may ask for double the active work or addition of Smart work in the routine working life to earn more.
Which means that your additional source of Income could be active i.e. you have to work actively to earn it or it could be passive where you do not have to do anything. Even in case of Passive income, you first have to work actively to create an Asset (Financial/Real or intellectual) so to earn passively at a later stage.
Diversifying the income sources in the different unrelated industry is also a wise strategy, to protect you from the losses during the downturn in one market /segment and allow you to financially benefit from the upswings in other.
Below are some of the ideas that came to my mind while discussing the options with one of my clients.
It all has to start with establishing the financial security and ensure your primary source of income. I mean double income is definitely attractive but under that lure, one should not get lenient with the primary source.
Second income does not justify doing away with the basic protection planning like having decent emergency fund and required Insurances.
Once you are ready with the basics, take the plunge.
Ideas on the Second source of Income
- Spouse Income:
Your spouse can be a major support in generating a second source of Income in the family. You may look at him or her as an Underutilised Human Resource having the potential to supplement the family income.
Now if she is employed, a professional, runs or participates in a business then she may actively be already contributing, but even if she is not she can be of help in generating another source of income which may be active or passive.
Last month I met a person, who runs a grocery shop. The ladies in the family (his Mother and wife) runs a small food business from there home. They were having a very small menu, routine food items, and were listed on Zomato. Being a Simple home cooked food, they were quite popular on the site and were getting good orders. I loved the idea and was something easily is replicated in other families.
Besides this Home tuitions are another popular way to earn the second source of Income and it works well when your surroundings have families in a full-time job.
Cooking classes, Dancing classes, Painting classes, Consultancy, starting a Creche, procuring things locally and selling them online, starting a Blog, a Vlog, Online Tuitions…there are so many options for one to explore. Before that just find out your competency and interest.
- Part-time Avenues:
The above-mentioned areas can be tried on a part-time basis too. But if one is really serious about generating revenue, then discipline is a must.
Its just like you have started a home-based business and you have to give attention to the same as it deserves. You may also have to make some small investment in it. Every new thing takes time.
I know many people who are into a full-time Job, but they make it a point to write 2-3 blog articles every week, and now their blog is very popular among netizens, and they earn decent from the advertisements, sponsored articles. This again is not so easy as you have to learn some amount of SEO and SMO and should be regular with good and useful content.
If you are a good writer and have a hold on a particular subject, you may work as a content writer and provide useful content to the seeker for a fee.
Video content has now taken over as the most consumed format and thus there is huge demand for skilled video editing. Beginners can leverage the video editing tools available online for free and thus work as freelancers to create a good stable second source of income.
One of my friends runs 2 hours of Zumba classes daily, which is actually her own exercise time. Ladies around her house joined her. Now she helps 20 ladies losing weight or destressing through dance and charge Rs 1000 per month. A clear 20k revenue per month.
My other friend while teaching her own kids, make a call to other kids on the same floor of her society tower. No, she does not do tuitions, but just provide a learning environment with a bit of guidance to the children. So, with this, Moms are relaxed that their children are studying, a fixed and focused 2 hours “Study time” to the kids. And a fixed income to my friend. Isn’t it Interesting?
What I mean is that you never know what idea will start paying you. No idea is small, its just you have to give it a try.
- Investment Income:
This is a Passive Income which generates out of your own money. But you first have to accumulate enough money for it. This is when we say that your Money is working for you and paying you since you have nurtured it well during the saving years.
Different types of Incomes that come from your Investment are:
Rental Income: When you have your own property residential or commercial you may put it on rent, if you have independent house property you may construct floors and put them on rent, some people sublet their rented commercial property if allowed by landlord, You may tie up with sites like Airbnb.com and offer homestays to the tourists coming up in the city.Make use of your unused property or portion of the property.
Interest Income: Invest your money in Fixed interest-paying instruments like bank FD, Post office deposits, bonds, Corporate FDs and start getting regular income.
Pension: You may put money in Immediate Pension Plans to start with another regular and fixed source of Income flow.
Dividend Income: Your Equity shares can also be a good source of second Income. Invest in good Dividend yielding shares and keep accumulating. To start with you may not find dividend amount to be much but with patience and discipline when you accumulate a decent corpus you will start getting the reward.
Selecting the investment product for accumulation or distribution require a different strategy, so it is advisable to follow a financial Planning process and keep your goals clear.
- Royalty Income
This source of income is for the Creative people. Writing a Book and selling it online, by self-publishing. If you get a publisher then there’s nothing like it but even if you do not then also the whole world is on your laptop. Here’s a detailed article on Self Publishing
Your photo clicks may also get you a decent money. There are many sites like Shutterstock.com which will help you in marketing your photos and earn out of them, I am sure there must be many others.
It is a creation of an Intellectual property, which will help you generate a continuous revenue over a period of time.
Should you really strive for the second source of Income?
It all starts with what you really want, and how you want to do it. Creating a different source of income is definitely an attraction and may also a wise thing to do, but how you create it that’s upon your understanding and skills you have.
You may devote 200% of your time in your own profession or employment and learn new skills In the same field to multiply your present income and work towards increasing investment income, or you may devote the other 100% in creating another source with the help of your spouse or another available Human resource you have or with your own time and skills.
Please understand that a Passive source of Income definitely gives a peace of mind, but that income comes from an Asset which may be a financial, real or intellectual, and to accumulate that you first have to work actively.
What do you think of creating a second source of income in a family? Is it really required? what are your ideas which can be used to generate a second income? Pleases do share
Manikaran Singal is the founder and Chief financial planner at Good Moneying Financial Solutions. He is a CERTIFIED FINANCIAL PLANNER CM and SEBI registered Investment adviser (Regd no. INA 100001620). He’s having 20+ years of experience in financial services space.
In an era marked by economic uncertainty and rapidly changing job markets, the concept of having a second source of income has become increasingly relevant and crucial. Many individuals are turning to innovative solutions, such as earn money applications or “money apps,” to secure their financial futures and pursue their dreams of financial stability and freedom. One such solution that’s gaining traction in today’s world is the role of a “wealth planner” offered by these apps.
The Significance of a Second Source of Income
The need for a second source of income is born out of a desire for financial security and independence. It’s a proactive response to the unpredictable nature of today’s job market, where traditional employment may not always provide the stability one seeks. Having an additional income stream not only safeguards against unexpected financial setbacks but also offers opportunities for wealth accumulation and personal growth.
Enter Earn Money Applications
Earn money applications, often referred to as “money apps,” have emerged as a game-changer in the pursuit of a second income source. These apps provide users with a diverse range of income-generating opportunities right at their fingertips. From taking surveys and participating in affiliate marketing to freelance work and cashback rewards, money apps offer flexible and accessible ways to bolster one’s earnings.
The Role of a Wealth Planner
While money apps open the door to various earning avenues, the real value lies in how users manage and grow their earnings. This is where the concept of a “wealth planner” comes into play. A wealth planner, often a feature or tool within these applications, helps users map out their financial goals, create a budget, and develop a strategy for wealth accumulation.
A wealth planner can serve as a guiding hand, assisting users in making informed decisions about how to allocate their second income source. It can help users set aside funds for savings, investments, and other financial objectives. In essence, it acts as a personalized financial advisor, offering insights and recommendations tailored to each individual’s unique financial situation and aspirations.
In today’s rapidly evolving economic landscape, having a second source of income is not just a luxury but a necessity. Earn money applications, or money apps, have democratized the process of generating additional income by providing accessible and diverse earning opportunities. To make the most of these opportunities and secure one’s financial future, the role of a wealth planner within these apps cannot be underestimated. It empowers users to not only earn money but also plan, manage, and grow their wealth effectively, taking them closer to their financial goals and dreams.
In the modern era, having a second source of income has become more of a necessity than a luxury. With the cost of living on the rise and financial security becoming increasingly important, people are constantly looking for ways to increase their earnings and secure their future. One such avenue that has gained popularity in recent years is the use of earn money applications.
These applications, often referred to as money apps, offer a plethora of opportunities for individuals to earn extra income. From completing simple tasks and surveys to investing in stocks and cryptocurrencies, these apps cater to a wide range of interests and skill sets. They provide a platform for individuals to utilize their free time effectively and earn money from the comfort of their homes.
However, while these apps offer numerous opportunities, it is essential for individuals to approach them with caution. Not all money apps are created equal. Some are legitimate platforms that pay users for their efforts, while others may be scams designed to take advantage of unsuspecting individuals. Therefore, it is crucial to do thorough research and choose reliable and reputable money apps.
Moreover, earning money is just one part of the equation. To truly secure one’s financial future, it is equally important to manage and grow the money earned effectively. This is where a wealth planner comes into play. A wealth planner can help individuals create a comprehensive financial plan that takes into account their income, expenses, savings, investments, and financial goals.
A wealth planner can provide guidance on how to allocate funds earned from money apps effectively. They can help individuals understand the importance of diversifying their income sources and investments to minimize risk and maximize returns. They can also provide advice on tax planning, estate planning, retirement planning, and other aspects of financial planning.
In conclusion, while money apps can provide a valuable second source of income, it is essential to approach them with caution and make informed decisions. Coupled with effective wealth planning, they can play a significant role in securing one’s financial future.
Side Hustle Surge: Money Apps Empower Individuals to Build a Second Source of Income
The concept of a single income supporting an entire household is quickly becoming a relic of the past. Rising living costs and a growing desire for financial security are pushing people to explore second source of income options. Thankfully, the digital age has provided a solution in the form of earn money applications. These user-friendly apps are transforming the way people can generate income, offering flexibility and accessibility that traditional work arrangements often lack.
Beyond the Paycheck: Unveiling the Potential of Money Apps
Gone are the days of limited earning opportunities outside of a traditional 9-to-5 job. Money apps cater to a wide range of skillsets and interests, allowing individuals to leverage their existing talents or explore new avenues to bring in extra cash. Here’s a glimpse into the diverse options available:
• Microtasks and Surveys: Apps offering small, bite-sized tasks like data entry, completing surveys, or testing websites provide a way to earn quick rewards during commutes or breaks. While the individual earnings may be modest, they can accumulate over time.
• Freelancing Platforms: Individuals with specialized skills in writing, graphic design, coding, or social media management can find freelance projects on platforms like Upwork or Fiverr. This allows them to set their own rates and work on projects that align with their interests.
• Selling Crafts and Services: Platforms like Etsy or local online marketplaces offer a virtual storefront for artisans and skilled individuals. Whether it’s handmade jewelry, baked goods, or creative design services, these apps empower people to turn their passions into profit.
A Strategic Approach: Maximizing Earnings with Money Apps
While money apps offer a convenient way to earn extra cash, it’s important to approach them strategically to maximize their effectiveness. Here are some tips:
• Identify Your Skills and Interests: Focus on apps that leverage your existing skills or allow you to explore areas you’re passionate about. This will make the earning process more enjoyable and sustainable.
• Research and Compare Apps: Not all money apps are created equal. Research different options, compare commission structures, and read user reviews to find the ones that best suit your needs.
• Set Realistic Goals: Be honest about the amount of time you can realistically dedicate to these apps. Start with achievable goals and gradually increase your efforts as you gain experience.
Consulting a Wealth Planner: A Smart Investment for Long-Term Financial Security
While money apps are a fantastic tool for generating a second source of income, it’s crucial to have a holistic financial plan in place. Consulting a qualified wealth planner can help you create a personalized strategy for managing your income, saving for your future, and achieving your long-term financial goals. A wealth planner can guide you in:
• Optimizing Your Money App Earnings: They can help you identify apps that complement your existing skills and maximize your return on investment.
• Investing for the Future: Developing a sound investment strategy is crucial for building long-term wealth. A wealth planner can help you create a diversified portfolio aligned with your risk tolerance and financial goals.
• Debt Management: If you’re carrying debt, a wealth planner can help you create a plan to pay it down efficiently, freeing up more of your income for saving and investing.
The Takeaway:
Money apps are a powerful tool for individuals seeking to build a second source of income. By leveraging the flexibility and accessibility they offer, you can take control of your financial future. However, remember that a comprehensive financial plan is key to achieving long-term financial security. Consulting a wealth planner can help you chart a course towards your financial goals and navigate the ever-changing economic landscape. So, embrace the digital revolution, explore the possibilities offered by money apps, and work towards a future of financial freedom.