on May 19, 2020
Sometimes it’s nice to line your pockets with a little extra play money. Or maybe, you just want to put more towards your savings. Either way, you might consider tapping into an additional source of income along with your 9 to 5.
Whether you’re moonlighting at your favorite bookstore or working at home in the growing gig economy, here are some tips to consider when finding an additional source of income:
1. Know Your Goals
While you’re figuring out how to earn additional income, never lose sight of why. If you want to save up for your dream cruise, then find an income stream that’s more short-term. If you are paying off debt, then set a goal for your additional monthly income. Side gigs also always have a cost – less time at home, supplies, business expenses, and so on. In short, make a plan.
2. Labor Vs. Capital
There are two main forms of earning income: labor-based and capital-based. Labor-based income is a fixed amount that you earn based on how many hours you worked or how much you produced. These are your dollar-per-hour jobs or selling your work on Etsy, for example. Capital-based income, on the other hand, is money that you continue to earn for something in which you have ownership. This includes narrating audiobooks, investing in stocks, starting a blog with ad revenue, writing a book, making YouTube videos, and so on. It’s riskier than labor income, but it can be more rewarding and time-efficient.
Consider which avenue you want to go down.
3. Passion Pays Off
This is the most important tip. Your passion doesn’t have to be something that makes you jump out of bed in the morning, excited to get to work. Oftentimes, passions start as whispers, not shouts. If you’re naturally curious about a local pottery class, take it up. Over time, you might start selling cute mugs or vases on Etsy. No matter how much time and effort passions take up, the endeavor is worth it (whether it becomes profitable or not). Your extra source of income shouldn’t just add money to your life. It should also add value.
With all of that, finding an extra source of income can be rewarding. It should also reinforce balance in your life, not steal it. Keep your goals in mind and be practical, and you just might get that bump in revenue you’re seeking.