In the modern world, it can be precarious to rely on just one source of income. With rising debt and many seeking to save for the future or even gain financial freedom, building multiple income sources has to be one of the smartest moves you can make—and no, you do not need to quit your 9-5 to accomplish this!
It really is possible to add income sources without jeopardizing your primary job. Here's how:
1. Understand What Income Sources You Will Create
Complete before and start with your understanding of what the income sources are.
• Active Income (trade time for money - your job or a freelancing gig)
• Passive Income (money you earn with little ongoing effort - i.e. royalties and dividends)
• Portfolio Income (money earned on investments - i.e. stocks and real estate)
You will want a mix of these three income sources that can align you toward the goal of better financial freedom.
2. Start with What You Are Already Good At
If you have skills, leverage those skills to create an additional income source.
This may mean you:
• Freelance - there are a number of websites you can use to freelance: UpWork, Fiverr, Freelancer and many others. Here you can offer skills you are good at (i.e. writing, graphic design, coding, consulting) and find customers looking for your product or skill.
• Tutor or Coach - what do you know? Teaching is the best method to master something. Whether this is in-person or online (Zoom), you can teach others in what you are knowledgeable in. Teachable.com is a wonderful platform for you to build out workshops or courses to teach.
3. Invest in Passive Income Sources
If you've got some money saved up, you can think about investing in:
• Dividend-Paying Stocks: Stocks that provide you income payoffs regularly, even if you start out small.
• Real Estate: Rental properties can provide income on a month-to-month basis, but need an initial capital investment and employee/employment work.
• Real Estate Investments Trusts (Currently "REITs"): A lesser commitment to real estate ownership, you can participate in the dividends and returns.
If you're persistent in building your investment portfolio, and consistent in reinvesting, even a small portfolio can grow over time.
4. Join the Gig Economy
The gig economy has many, flexible ways to earn money on your own schedule. You can find:
• Rideshare Driving opportunities: Uber, Lyft
• Delivery Services: DoorDash, Instacart, Amazon Flex
• Pet Sitting or Dog Walking: Rover, Wag
• Renting out your assets: Rent a spare bedroom on Airbnb (or similar) or rent your car though Turo.
The gig economy is even helpful to those who prefer to be more hands-on with their work versus another digital opportunity.
5. Launch Your Side Hustle
If you are an aspiring entrepreneur, it may be time to devote the required time and energy to start working on a small side business:
• E-commerce: one option is to sell products online (Etsy, eBay, Amazon, Shopify, etc.).
• Dropshipping: A low-risk option that doesn't require you to physically hold any inventory or become the owner of anything.
• Print on demand: This means you will create designs for T-shirts or products and only sell them if there is demand for sales.
Start small, automate what you can, and let it grow slowly with your full-time job.
6. Get Automated and Outsource
Once you start to see a few of these income streams start to take off, you can start to consider what you would like to automate or outsource. You don't want to have your side income grow and develop into another job that takes you away from whatever you're trying to accomplish, or that just leads to burnout.
There is a tool or technique for every aspect of what you are trying to do, including:
• Getting emails automated (Mailchimp, ConvertKit)
• Scheduling social media (Buffer, Later)
• Hire freelancers or virtual assistants to help with repetitive tasks.
7. Stick with It, Don't Burn Yourself Out
Don't try to create five income streams at once.
8. Monitor Your Growth
Make sure to keep track of:
• Your Time Investment
• Your monthly income from every stream
• Your expenses and profits
If spreadsheets aren't your thing, consider apps like Notion or financial tracking apps like Mint or YNAB (You Need a Budget). Don't worry about being organized — you just want to stay on top of your side hustles so that you're not disheartened by mistakes you may make along the way.
Wrapping Up
It's totally doable to have several income streams while holding a regular job. It's not just doable, it's normal! Remember to start small and be patient while you're building something sustainable that fits your lifestyle. If everything goes well for you, you might discover you are able to live and work how you want. Over time, these extra streams will provide you with freedom, more peace of mind, retire earlier or, perhaps have the opportunity to chase a passion full-time.
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