Alternative income streams are lines of income you take in outside of your main day job. This could be money you get from a business you run from your home, money you get from gifts, bank and credit card bonuses, or earned interest from savings accounts, among other things. More importantly, they are forms of income you don’t rely on for your daily living expenses, like food and bills. The end game of the alternative income stream, is to create a safety net for later use and to help you reach your financial goals.
Finding ways to create this cushion for yourself can not only help you save money, but it can offer you protection in the event of a job loss or financial emergency. While it’s true that your career is the greatest contributor to your assets, it’s important to take other avenues into consideration. With one income stream, most people are just trading their time for money. They’ll get by this way, in most cases staying just over broke. However, it is very difficult to get ahead this way. As the saying goes, don’t put all your eggs in one basket. There are many other types of income to look into.
When you sell something for more than it costs, like when you pursue entrepreneurial endeavors, will net you profit income. It can take a large chunk of time, risk and money to start this process initially but in the long run can provide a steady, reliable stream of secondary income if managed properly.
To start moving towards this process, you need to think of a product you want to sell or a service you want to provide. Get organized and make a list of everything you would need to sell this and price it out. Maintaining proper organization every step of the way will assist you on this journey and help you once you begin managing clients as well.
Lending your money to someone else and collecting interest can be another source of alternative income. This could be to a bank, to the government in the form of treasury bills, or lending money via a social lending website like Lending Club.
Interest income is a great way to earn passive income, it’s also one of the most low risk ways to bring in a little extra money. High interest, low penalty CD’s for example is a set it and forget it situation where you can put money in and at the end of the term, you get money back plus interest with very little hassle on your own end.
Receiving money as a shareholder in a company based on a percentage of a company’s earnings is dividend income. It usually comes in the form of cash payments, but occasionally it is also paid out in the form of more shares or other property. Many people who invest regularly and have experimented with several strategies within their portfolio have come to realize that dividend investing can create additional income and increase the market value of their portfolio at the same time.
Stocks can be risky at times, but if you’re making smart choices and are following careful guidelines, investing in stocks can be a lucrative endeavor for you. Mutual funds and bonds may also deliver dividends to investors over time.
Renting out assets you have, like a house or a car, will bring in rental income. This can bring in a significant amount of income but obviously requires putting the most amount of money behind it. In terms of a return on your investments, it is generally the biggest but it does have its pitfalls as well.
The money required to begin such and investment is also quite large. And liquidating the assets if need be can be more time consuming than you’d like.
When you allow someone else to use your products, ideas or processes you get paid royalties. The other person does all of the work and makes all of the revenue, and you get a small percentage of what they make. The most difficult part about it is creating something brand new that is also able to be mass produced.
While this is most likely the most difficult to achieve, there is practically no limit on the amount of money you can make from it, so it has the ability to be the most lucrative.
There are an almost endless amount of ways to create other forms of income if you think outside the box. The above list are some of the larger ways to create revenue but you don’t have to go so big every time to create a consistent influx of cash.
If you have experience or even an avid interest in an area, starting a regular blog about it can be a great way to create income. It won’t happen immediately, like most things it takes time. However, creating consistent, interesting content will bring in readers. Once the readers come, you can have advertisements on your blog and advertisers will pay you for those placements.
Anything from babysitting, to walking dogs, to giving other people the opportunity to utilize your handyman skills can bring in a little extra income. Simply relying on word of mouth advertising can bring in a small amount of consistent income.
There are many freelance website where you can outsource your current job skills to other people. Upwork, Fiverr and Indeed, among others, will allow you to post your expertise and find freelance work in related fields. This is a simple way to use skills you already have and to find work using what you do best.
You don’t have to think of this as an all or nothing situation. While yes, it would be great if you started off making an extra $1,000 dollars a month, chances are that won’t happen. Even an extra $50 a month is a great jumping off point. Give yourself room to learn as you go and you’ll find new ways to maximize profits and create a comfortable, additional income stream for yourself and your family.