The Importance of Diversifying Your Streams of Income and How to Thrive Doing So
We are currently living throughout the most unprecedented economic experiment in the history of modern capitalism. A global and ruthless pandemic has paralyzed our understanding of what a ‘normal life’ is, whilst simultaneously bringing a standstill to our traditional ways of conducting business.
As cases have risen all across the globe, so have the figures for unemployment. Sectors like aviation, hospitality, and tourism have been some of the worst-hit industries. If anything, what has arisen from this horrible ordeal is our appreciation for the smaller things in life. The coronavirus crisis has been tough on many families across the nation and although everyone is eager to know when things will return to normal, we must adapt to the current circumstances.
A crucial lesson that this pandemic has taught us is the importance of diversifying your streams of income. When people talk about multiple streams of income, larger investments come to mind. However, there are countless ways to generate revenue and not all of them require a large amount of capital. This article will provide you with an array of ideas on how to multiply your streams of income and how to thrive whilst doing so.
Firstly, we should briefly tackle why it is important to diversify your means of income. This has become especially evident during the coronavirus pandemic, as many people have lost their jobs and become redundant. In the event that you lose your main source of cash flow, having multiple streams will soften the blow. Not having to rely on your job will allow you to take more risks with your finances and hopefully encourage long-term wealth.
Investment
Taking your profits and investing them in a worthwhile cause is probably the most conventional way to diversify your income. This is often the least time-consuming way to make money, however, you must be knowledgeable about your investments and find a feasible balance between risk and reward. When it comes to investing your money, the sky is the limit. You can choose to invest in stocks, bonds, investment funds, cash equivalents or even ICOs. The possibilities are endless, however, if this all sounds rather confusing, here are some of the best investments in Canada. Investments are a great way to generate passive income, which requires little or no effort to maintain.
Reselling
Not everyone has a hefty lump of cash sitting around to invest in business opportunities. If you have a knack for finding hidden gems, why not try your luck in the resale market? The great thing about reselling items is that all sorts of products can be resold. The easiest way to thrive in this business is by choosing an area that you are familiar with or passionate about. Nowadays, thanks to the internet, you can resell practically anything. Many individuals have raked in cash by reselling bikes, cars, art, furniture, antiques and even shoes or handbags.
You can find items to buy and resell in a more traditional way, such as at flea markets or charity shops, as well as online. Once you find some reliable sources for your items you need to spruce them up and sell them for a profit. Make sure you have great lighting when you take your pictures as this will help the item stand out. Our tip is to keep to one resale platform (E-bay, Facebook Marketplace etc.) and truly nail this before you branch out.
Freelancing
People often think that to become a freelancer you must be the cream of the crop in your field of expertise. The truth is much simpler, you just need to have a basic set of skills that a client is looking for. This can range from graphic design to marketing, copywriting, photography, proofreading, or even data entry. If you can set aside some hours in the week for freelancing, you can earn some extra cash on the side. If you speak a second, or even third, language, there is a lot of translation work online. There are loads of online platforms that connect freelancers with potential clients. The best part of being a freelancer is that you delegate your own workload. Whether you are available for 2 or 10 hours a week, the opportunity to find additional work is there.
Outsourced Gigs
If you haven’t got a specific skill set to become a freelancer, you can still find odd jobs online which will also provide you with an additional stream of income. Just have a quick search on online job boards, like Indeed or Craigslist, or sign up to work for a large delivery company, like UberEATS or Deliveroo. If you want to combine your weekly exercise with a food delivery job this is the perfect option for you. As long as you have a mode of transport and some free time to spare, you can bring in some extra bucks on the side.
Set Up Your Own Side Business
Maybe you have a creative flair or entrepreneurial eye, if so, why not create your own side business? The great thing about setting up your own business is that it’s relatively easy and there are a ton of resources online to help you do so. If you have a savviness for creating, be it food, clothes or jewelry, this is the perfect opportunity for you.
When setting up your own business you should ensure that your brand stands out from competitors, you deliver a high-quality product, and you know your target audience. Social media offers the perfect platform for both advertising and marketing, whilst websites like Shopify allow you to easily showcase your items online. Drop shipping is also a highly popular option which entails buying items at a wholesale price and reselling them for a profit without having to hold onto stock.
Just be sure if you’re running a business to consider setting up an LLC for free.
Final Thoughts
No matter how much you currently earn or how much capital you have saved up, there are infinite ways to increase your streams of revenue. The two most important things you will need are determination and patience.
