Several Ways To Diversify Your Income This Year

GENERATING ADDITIONAL PATHS TO FINANCIAL FREEDOM

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THE EFFECTS OF DIVERSIFYING INCOME

It’s always a great idea to diversify your income by adding various streams of revenue. 

Once my husband and I started diversifying our income, we felt more in control of our finances and anxiety! 

We were able to find comfort in the fact that should either of us lose our jobs, that we would be okay. Our family would still be taken care of,  maybe just on a stricter budget.

You will notice this trend amongst the wealthiest of people. They always seem to have more than one, even several sources of income. Have you ever heard the phrase “don’t put your eggs in one basket”? 

Not to mention that this notion of different income sources plays on the whole “work smarter, not harder” principle. There are many types of secondary income that can be extremely hands-off. 

SEVERAL WAYS YOU CAN ADD TO YOUR INCOME

There are so many unique and creative ways to bring in extra income, so let’s dive into a few I know and love!

START TEACHING ONLINE

No, seriously! Teaching online or ESL is a fantastic way to earn extra income! Not only can teaching children (or adults depending on the platform) be fun, but also gratifying!

Additionally, The ESL industry has really taken off in the past few years, and the pay is pretty good despite the odd hours! (hours are usually in the mornings and evenings Beijing time).

 I know of several people, myself included, who have been able to make a full-time living off of teaching ESL. I have been teaching with Magic Ears for two years and don’t plan on stopping anytime soon.

Because of the times available for teaching, it makes ESL the perfect job to pair with a 9-5 if necessary! 

To teach ESL, you will need a bachelor’s degree, or at least be currently enrolled in a four-year program for most companies to accept your application. 

You will also need to purchase and complete a TESOL course. This certification is required but simple to pass. 

SELECT A COMPANY 

Now, there are a few different companies when it comes to teaching online, and if you are looking for flexibility, this might be the industry for you!

• Magic Ears $22-26 per hour 
• VIP KID $16-22 per hour 
• Say ABC $15-21 per hour 
• Dada $14-23 per hour
• Qkids $16-20 per hour 
• iTutorGroup $5-24 per hour 
• Palfish $10-30 per hour 
• Whales English $18-30 per hour 
• Gogokid $14-15 per hour 

“Your first investment should be in yourself. Learn new skills. The market can go up or down, but you’ll never lose your skills. This is more true today than ever before. Diversify your skills.”

Salil Jha

 INVEST IN REAL ESTATE

Another great way to diversify your income is real estate! Now, getting into real estate can be a bit costly, but it is certainly lucrative. 

PURCHASE A RENTAL PROPERTY

Purchasing a rental property is a great way to diversify your income! Especially if you can rent the place out for a little more than the mortgage will cost you monthly. 

Now, there are certainly some pros and cons of owning a rental property. 

Pros

• It’s a great source of passive income! 
• Houses or the lots they are on, generally increase in value over time, unlike vehicles, which depreciate. 
• You can build equity.  

Cons

• Being a landlord can really suck sometimes. Tenants move out without proper notice, miss rent, or don’t take care of the property. It is vital to have funds set aside for moments like these. 
• Things break and wear down, and you, as the landlord, are responsible for fixing them. 
• Going back to tenants, some people can be particularly unpleasant. So vet your renters carefully, call references, visit their social media accounts, and use your best judgment! 

Now purchasing an investment property isn’t the easiest way to diversify your income. You will need to have a large sum of money set aside for buying the home and enough to cover costs until it is ready to be rented out.

But, should you have the opportunity and finances to do so, rental properties are a fantastic way to open up more streams of cash flow!

RENT OUT A PORTION OF YOUR HOME

I know this idea might make some of you, cringe. I know I certainly did when my husband first approached me with it. 

We had only been married six months and were on the hunt for our first home. I remember fighting my husband on this. I really didn’t want to share a space with strangers, no matter how financially beneficial the situation.

But finally, I yielded, the thought of financial freedom too tantalizing to resist. 

We had been scouring the market for something with rental potential until finally, we found the perfect home! 

With some work, we were able to turn the basement into a completely separate apartment. Which we were able to rent out for the cost of the mortgage and then some. Because of this, we were able to purchase our second home one year later!

I also know people who rent a single room out in their homes or have an AIR BnB! These are all great ways to bring in more income, but be sure to check with the city before doing so. Some areas have restrictions on these types of rentals. 

START FLIPPING HOUSES

The main reason people dive into real estate is to make a quick, yet sizable profit and flipping homes provides just that! 

Flipping a home isn’t easy, it helps if you have some construction experience, but it certainly isn’t necessary. You can always learn as you go! 

Some of the Pros

• There is the potential to make a significant amount of profit in a short amount of time.
• You will gain more knowledge about real estate in general.

Some of the Cons

• There is the potential to lose money due to factors outside of your control, such as unexpected expenses. 
• You might encounter difficulty selling the property once it’s finished, leaving you to cover the mortgage. 
• Stress! Flipping a home can be a lot of added stress since there is so much money on the line. 

House flipping is a little more hands-on than some of the other real estate options, but it definitely provides the opportunity to bring in large sums of income at once. 

“Courage doesn’t always roar. Sometimes courage is the little voice at the end of the day that says I’ll try again tomorrow.”

Mary Anne Radmacher

Start A Blog!

Believe it or not, starting a blog can be a great way to bring in extra income, though it will be anything but passive income when you first start! 

Starting a blog is an especially fun option if you are passionate about writing! It takes time to grow your following and even more time to start making money doing it. But, with hard work and dedication, it is possible!

There are a lot of free blogging websites for you to get started on, though I do recommend putting a little money into your site if you want to monetize. I am a firm believer in, “You have to spend money to make money.”

Here are a few sites that helped me when starting my blog,

• WordPress
• Elementor plugin
• Bluehost
• Grammarly 

MAKE AND SELL SOMETHING

Selling something you have created is an excellent way to bring in more income! There are so many options when it comes to creating and marketing products.

You could,

1. Create an Etsy account and sell your art online! 
2. Sell your photos on sites like Adobe Stock, Shutter Stock, and Alamy!
3. Write an ebook and self publish!
4. Create and sell online courses on something you are quite knowledgeable about. 

These are just a few examples, but the possibilities are endless!

START A BUSINESS

A great way to diversify your income is to start your own business! So much freedom comes from working for yourself. Your business can be as hands-on or hands-off as you want it to be!

Start by merely evaluating yourself. What skills do you have to offer? What interests you? How much money do you wish to spend?

Then come up with a business idea! (I know this isn’t the easiest.) A book I recommend, if you are planning on starting a business, is The 4 Hour Work Week by Tim Ferris. He makes some excellent points, and his book helped me decide what kind of business I wanted to start!

Be sure to do your market research before jumping straight in, and don’t forget to create a business plan!

CONCLUSION 

There are so many options when it comes to widening your financial net! If you have been thinking about starting a new business, getting into real estate, selling your art, or teaching online, stop waiting! I challenge you to take 1 step closer to your goal TODAY!

Your time is precious, and you should value it as such!

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What are the biggest obstacles preventing you from diversifying your income?

How do you think diversifying your income could change your life?

Let me know in the comments below! 

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