How to create multiple incomes for a Secured Life?
Many of us are afraid of taking a home loan or personal loan due to long payment obligations. Growth of individual in terms of financial status would also reduce with limited sources of income. How an individual can create wealth by advanced planning? How to create multiple income streams for a secured and beautiful life? I have been working on this for the past 5 years and I am successful in creating different sources of income. I would be achieving my financial goal by end of Dec-2015 by implementing few of them. How you can create multiple sources of income in your life?
How to create multiple incomes for a Secured Life?
1) Create income through your hobbies
One of the biggest and simple way to create second or third income is to work on your hobbies and convert them into income sourcing stream. I have passion towards analyzing various investment options. I analyse various good mutual funds, IPO’s etc., in last 15 years. I invest in some options and I may not invest in some for specific reasons. I converted these experiences into my blog. Now this blog gives me second income. If you have passion towards particular hobby, you can convert it into income stream by investing few hours in a week.
Few hobbies that can be converted into income are:
- Create a blog or website on the subject which you are interested. You may be interested in child education and you can create blog around this topic. You may be interested in Java programming, you can create a website platform to provide various Java tips. You might be having good knowledge in MS Excel, you can create portal around this topic by providing simple tips on how to create pivots, simple reports etc.
- If you love teaching, you can teach kids in the evening between 6 pm to 8 pm and earn good money. This could be passive income, but yet is a regular stream of income which you would get every month.
- If you love in health fitness, you can start health fitness centre / Gym and spend few hours in the morning and few hours in the evening to create regular income.
- If you know the tips on how to reduce weight, you can prove it to your colleagues and sell some of the products under weight loss programme.
2) Create income through Rental property
If you are planning to create wealth by investing in real estate, best way to invest is investing in properties that generate rental value. You can buy residential or commercial properties which generate rents every month. You can do it by investing in constructed properties instead of plots / lands. You can create this as second or third income which can be substitute to main income.
3) Invest in Fixed Income Options
Another way to generate source of income is to invest in fixed income options like bank FD’s, tax free bonds, post office FD’s, Post office MIS etc., This would provide fixed returns per quarter / annum and can add to your regular income. Invest in high return fixed income options and where you need to pay less tax.
e.g. I am in 30% tax bracket. If I invest in bank FD, I would get pre tax return of 8% and post tax return of only 5.6%. Instead of bank FD, I can choose tax free bonds which provides over 7.5% post tax returns. My investment theme of getting monthy return is same, however choosing a right fixed income option is helping me to get 2% higher returns. If I invest Rs 10 Lakhs, I would get Rs 20,000 per annum additional income with this simple tip.
4) Invest in Monthly Income Plan Mutual Funds
There are several MIP Mutual Funds which provide regular income. While returns are not guaranteed, yet they provide regular income to mutual fund investors. You can invest in top MIP funds which I indicated in my article earlier.
5) Check for sources of adhoc income
I love analyzing various investment options. I created blog. What next? I keep getting requests from Yahoo, Moneycontrol and various other leading companies to write for them. While my main motto is not to become freelancer, I occasionally write for them over the weekends and some cut a pay-check for me. I generate some income which may not be regular every month. However this adds to my kitty of monthly income and this ranges between Rs 2K to Rs 10K per month. There are several ways to make money by writing online.
6) Spouse Income can add value
Another way to add income is, your spouse working on what he/she is passionate about. They can work as part time for teaching, freelance writer, running groceries shop, opening a boutique etc., Income generated through them would help you to create another stream of inflow.
Let me take my live example for better understanding
My situation in 2010. I work for a company and get salary income. I was part of joint family spend all my money, with less savings. Source of income is only salary with small addition from bank FD’s interest. Afraid of taking any home loan as I have only single source of income. Interest from personal loans taken has eaten away my savings. Zero real estate properties.
Let me explain my situation now in 2015. I still work for a company and get salary income. Out of my passion, I created this blog. I work over weekend and spend those few hours and generate second income through this blog. I invested in real estate and generating some rental income which is third income. I have taken home loan to buy property and not afraid of taking it even more. I invest in bank FD and generate fixed interest per annum which is 4th income. I invested in debt mutual funds to create regular income, though not fixed which is 5th income.
Readers, do you feel these tips are useful to you? What other sources of income you you feel can add as income stream for you?
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How to create multiple incomes for a Secured Life