A single source of income is no longer enough for people to survive. According to the Bureau of Labor Statistics, in 2016, 43 percent of workers earned less than $18,000 per year from a single job. This is insufficient to cover basic expenses like food, rent, and transportation.
Working a single job no longer guarantees a livable wage. In addition to the cost of living increasing yearly, wages have remained stagnant. Today’s average worker makes only $1 more per hour than in 2000.
This means that people are working more hours than ever before and still struggling to make ends meet. The rise of technology has also led to the displacement of many jobs, making it even harder for people to find reliable employment.
All of these factors together have made it increasingly difficult for people to live off of a single source of income. To ensure a stable livelihood, people need to diversify their income sources. Here are a few options you have at your hand.
One way to diversify your income is to take on a part-time job in addition to your full-time job. This can be a great way to bring in extra money, especially if you are already working in an industry that you are interested in, whether it be a hobby or career skill.
However, there are a few things to consider before taking on a part-time job. First, make sure that you will be able to handle the workload of two positions. If you are already struggling to keep up with your current job, adding another one will make it harder.
Second, think about how the new job will affect your current career. If the part-time job is in the same field as your current job, it could help you further your career. However, if the part-time job is in a different area, it could take away from your current career.
Third, consider the pay and hours of the new job. If the job doesn’t pay well or has unpredictable hours, it may not be worth your time. Ensure the pay and hours are reasonable before taking on a new position.
Another option for diversifying your income is to start a side hustle. It is a business you can run in addition to your full-time job. It can be anything from starting a blog to becoming an Uber driver.
The great thing about starting a side hustle is that you can do it alone. You don’t need to find a partner or get approval from anyone. You can also start small and scale it up as you have more time and resources.
However, there are some things to consider before starting a side hustle. First, make sure the business is something you are passionate about in life. It’s hard enough to run a business; it will be even more challenging if you don’t enjoy it.
Second, make sure you have enough time to dedicate to the business. A side hustle is not a passive income source; you must work regular hours to succeed.
Third, create a realistic business plan. Don’t try to do too much too soon. Start small and grow as you can handle more.
A side hustle is more personal than business, and your efforts to make more money also benefit you in other areas. For example, you might be a master of yoga, a meditative exercise good for the body. Instead of attending classes, you might be skilled enough to lead a class by yourself. As a result, you can get profit out of something you love to do. However, getting yoga teacher training classes will be essential to become a certified instructor.
Investing is another way to diversify your income. This includes stocks and bonds to real estate and private equity.
The great thing about investing is that you can make a lot of money without putting in a lot of work. Once you have made your initial investment, the money will start to come in without you having to do much.
However, there are some things to consider before investing. First, make sure you understand the risks involved. Investing is not a guarantee that you will make money; there is always a chance you could lose what you put in.
Second, don’t invest more than you can afford to lose. If you are comfortable with the risks, only invest an amount that won’t put you in a difficult financial position if you lose it.
Third, do your research before investing. Make sure you understand the investment and what it entails. Don’t invest in something you don’t understand; you could lose your money.
Fourth, have a plan for how you will invest your money. Don’t just put your money into one investment; diversify your portfolio to minimize risk.
There are many ways to diversify your income. The best way to do it is to consider your skills, interests, and goals to find the right option. Diversifying your income will help you stay afloat financially and give you more stability in life.