Ways to Diversify Your Source of Income

counting cash

Yes, you have a secure job. And it’s something you enjoy doing. It pays you well, and it’s not too demanding to cause you burnout. There’s a clear career growth for you in there too. Basically, you have hit the jackpot in terms of employment. Still, you should not be complacent.

Your goal should be to diversify your source of income as early as now. Doing so will allow you to aptly prepare for your retirement. After all, for you to live comfortably once you’re out of the workforce, you need a nest egg of at least $1.5 million. That is, if you plan to fund a lifestyle worth $60,000 a year for the next 30 years of not working.

That’s quite doable. In fact, you could do better, especially if you pursue other sources of income, such as the following.

Franchise an existing business

There are many franchise opportunities at your disposal. To spot the best options, do the necessary research. Do not sign above the dotted line with the first business person that assures you 100 percent ROI after three months of operation. Ask for supporting data.

Once you have the numbers, consult with experts. Talk to your legal counsel. Have a session with an accountant. Study the business inside out. Know its strengths, pinpoint the limitations.

The best part about franchising an existing business is that you already have a ready market to tap. You need not build a market from the ground up. All that’s left for you to do is maximize the opportunity.

If you hired a competent team, you could manage a franchised business while having a day job. The key is delegating as skillfully as you can.

Start your own Small and Medium-Sized Enterprise (SME)

If franchising is not your thing, why not exhaust all of your creativity and business acumen and start an SME? Here you will be in control from developing a business plan to its execution. You can regard the whole endeavor as a hobby, so you don’t need to quit your full-time job.

For it to feel like a hobby, pursue a business that’s close to your heart. Are you a foodie? Maybe a food truck you can manage after your nine to five will be right up your alley. Are you into nail art? Why not open a small salon dedicated to all things nails?

Explore investment products

finances

Investment products run the gamut. You have stocks where you buy a share in a company. These shares constitute a piece of the company’s assets. If the company from which you bought stocks grows exponentially in the next decades, so does the monetary equivalent of your shares.

You also have bonds, where you offer your money to a borrower. You earn from the interest the borrower pays on top of the outstanding loan amount. Compared to stocks, this investment is less risky and less lucrative too.

You might want to look into other investment products, including mutual funds, index funds, exchange-traded funds, and options. They vary in the degree of risk and reward involved.

Invest in real estate

Do you have money sitting in the bank? Is it enough to purchase real estate? If you answered yes, then it’s high time you invest that money in a property you can rent out. Owning real estate for rent is one of the safest ways to earn from an investment. Just make sure you partner with a broker that won’t get you shortchanged.

Your loyalty to your job won’t be diminished if you pursue other sources of income. So do not limit yourself in terms of your financial plans. In the end, it is your life, and you have the power to steer it in the direction you desire.

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