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How To Have Multiple Sources of Income

Have you ever wondered how some people have multiple sources of income?

Have you ever seen how they always seem to keep buying things?  May be, a friend, a neighbour or a relative.

Perhaps you always wished to know how they did it but didn't know how to earn like them.      

Having multiple sources of income doesn't mean that you need to work part-time for multiple employers.

If you have only one source of income and would like to create more than one source, here's how:

*      If you have a regular income (e.g., salary), then keep apart 10% of your income aside.  You know you can do it because it is really possible to manage with 90% of your salary.

Invest this 10% in a monthly recurring deposit.  Or you can consider investing this in an Index Fund (Mutual Fund).  If you have no knowledge of the Stock market, invest only in an Index Fund.  Your stock advisor (read: broker) may advice some other fund.  Be firm and say 'No'.  Other funds are risky - riskier than the Index Fund and they fetch more commission/brokerage to your advisor.  When he gets more, it means, you get less!  It's as simple as that.

After an year, your recurring deposit or the Index Fund will have a tidy sum.

v  Convert this amount into a Term deposit to earn monthly interest.  Now, you have an additional source of monthly income!  Don’t make the mistake of thinking “oh, the interest that I get doesn’t come to much” or something similar. It may look small  But you’ve to consider two things here: One, it is definitely bigger than zero.  And two, it is going to fetch compound interest. Benjamin Franklin has famously said that compound interest is the eighth wonder of the world. To appreciate the effect of compound interest, visit the website of any Bank and check for yourself the difference between simple interest and compound interest for any given rate.   

v  If you can teach, that’s an additional source of income for you.  Teaching is a noble profession.  Those who learn from you will make use of that knowledge to earn their own income. If you can write, try freelancing.  Don’t try to be calculative  by balancing your effort to write and the income it generates. “Is it worth my effort” is the question which quickly comes to your mind. In the beginning, the income generated is always less than your effort.  But, that’s how money is generated.  Nobody earns a huge sum overnight – except in movies and story books.   Writing has another aspect.  People need your ideas. You’ll be helping them if you know how to write articles.

 

v  Rent from property.

 

v  Perhaps you’ve some other skill and, right now, teaching it for free. What stops you from encashing it?  Just because you haven’t accepted money for your service, time and energy doesn’t mean that you need to continue to do it for free.                                       Consider this:  any extra income will make you and your family more joyous.  

 

Try this: (If you’re not already doing, that is): Always carry a high denominated currency note in your wallet.  Don’t spend it; but keep it and see how it boosts your feeling of abundance and confidence. (Check:  if you do not want to do this, ask yourself why).