The Benefits of Creating a Side Income
Creating additional sources of income is a great way to get additional money for investment and to become less dependent on a paycheck in the future.
How to Create an Additional Income
Start a side business that you can operate at night or on the weekends or both. Types of side businesses you could start:
- Carpet Cleaning Business
- Start a Website or Blog
- If you want to start a blog or website the cheapest place to buy a domain is at Namecheap.com, I always buy my site domain names through them because of how affordable and easy to use their service is to use.
- After you buy a domain name, you’ll need a web hosting service to host your site. There are hundreds of web hosting sites to choose from, I’ve used a few different ones. One I use and really like is HostGator. Another one I’ve used and liked was DreamHost.
- Buy a Rental Property
- Auto Detailing
- Selling on Ebay
- Freelance Writing
- Dog Walking
- House Cleaning
- Home Daycare
- Personal Chef
- Cleaning Services
- Home Daycare
- Personal Fitness Trainer
- Interior Decorating
- Fix Computers
These are just a few ideas, but there are countless things you could do to earn extra income. The key is to find unmet wants and needs. After you find a need capitalize on it. In other words take a problem and figure out a way to fix it.
Invest Additional Income
After you begin receiving additional income take it and build more wealth from it by investing it.
Invest additional income in:
Services like Betterment is an extremely low-cost service that will invest your money for you by investing in ETFs based on your personal preferences like your age and risk tolerance. Click here to learn more
Use Additional Income to Catch-Up on Retirement
It’s also a great idea to use your additional income to max out retirement accounts like:
- Matching 401k (work)
- Roth IRAs
You can also educate yourself more about investing and reaching personal finance goals by taking a class or course, like ones offered through Rich Dad Education.
To spread your money further buy used items. Instead of buying a brand new car which will lose half of its value as soon as you drive it off the lot, buy a gently used vehicle that’s 2-3 years old. By buying a vehicle that’s 2-3 years old you can save thousands of dollars. This is a technique that the rich use. Take Warren Buffet one of the world’s richest men, for example, for years he drove an old truck even though he could afford any vehicle he wanted.
Be Smart and Diversify
Protect your finances by diversifying your investments and your sources of income. I would highly recommend you use a personal finance software and/or app like Personal Capital which is a free service that allows you to link all your finance accounts in one place, like bank accounts, credit cards, loans, investments, brokers, and more. Personal capital will even tell you if you’re paying too much in fees on investments like mutual funds.
When you use a personal finance software such as Personal Capital you’ll be able to track how much money you have coming in, how much is going out, set goal finance goals, and it will generate charts and data to show you where you’re at. Click here to learn more
The Benefits of Creating an Additional Income Overview
When you have additional income from investment income and a side-job/business income you’ll become less vulnerable to downsizings, layoffs, crappy bosses, and the office politics. Learn the basics of investing
Author: Tyler DeBroux
Tyler started Oddball Wealth towards the end of 2014 after graduating college, as a way to stay relevant in his area of study, stimulate his mind, and to educate and help others.
Tyler has worked in the financial services industry, as a financial advisor, helping his clients make wise financial decisions and personalized long-term financial plans. Since graduating college in December of 2014, Tyler has paid off more than $15,000 in student loan debt and counting, his goal is to have all his student loans paid in full by the in of 2016.
Tyler is an entrepreneur and an expert in personal finance. Two of his many hobbies include investing and building online businesses. He is also a big advocate of early retirement and an aggressive saver, who utilizes any financial resources and tools available to him to help reach his goals for achieving financial independents.