With reduced job security and frequent market crashes, it is essential to have different sources of income. If you rely alone on your job as an income source, you will have no income in case you get laid off. But what is even more important is to invest your savings. But investments are prone to risks as well. To minimize the risk and maximize the returns from them, you need to diversify your finances as well. You can discuss this matter with an investment adviser. However, let us talk about some of the basic outlines here.
Different Sources Of Income
Diversity in your Investments
It is crucial to invest your savings in the right places. What is even more critical is diversifying your investments, so the risk is evenly distributed.
- Safe assets like Fixed Deposits or Post office MIS or Deposits in Government Securities as well as Traditional Insurance Policies from LIC and other life insurers. Gold held in physical form is also a very safe investment.
- Medium risk assets are like Real Estate, Balanced Mutual Funds, etc. Even investments in stock of some large blue chip companies fall in this category. But they need to be re-looked from time to time.
- Risky investments like Equity MFs or stocks. Alternative asset classes like Metal indices, Art, Cryptocurrencies, etc.
Start Selling Product / Service
If you want more income sources, consider selling something. You can both handcraft things and sell them. If you do not have the time or skill for it, you can buy things and resell them. The widespread use of social media has also made product promotion very easy. You can start with people you know and then increase your customer base. If you have a successful business, eventually, you could plan for an early retirement too. You can use the online selling portals to host your products too, if you manage to have more popularity.
Create A Product
You can create a product. It can be as easy as making your T-shirts and dresses and selling them. Digital products and apps are on the rise today. So you can get in touch with a digital programmer and develop an app. That might need some time and effort and some brainstorming. However, if the venture takes off, it can become a steady source of income.
Invest in Real Estate
If you are looking for an extremely safe investment with remarkable long term returns, then it is worth considering cash flow generating real estate. The key is to be able to hold onto them and let time do its magic. Buying sub-standard properties in bad neighborhoods often lead to bad tenants and leave you with an unsavory experience. Start with the right real estate properties, and the experience ends up being way better.
Over the past decade, many people have invested in real estate. Every one of the properties will likely generate enough rental income to cover the mortgage, taxes, insurance, and incidental expenses. Some may even have a little leftover after that.