What kind of multiple sources of income ideas are there out there and how can you start earning some much-needed extra cash? Let’s dive in and find out.
With the cost of living crisis hitting home all across the world, many of us are turning to second or third jobs to make up the difference. This can be massively time-consuming and put a strain on our relationships and mental health.
While multiple sources of income are a necessity for a lot of us, they can also serve to boost our income for rainy day funds and for investment or pensions later in life.
Why do you need multiple sources of income?
Honestly, there are a ton of different reasons why people opt for multiple sources of income. With some methods being completely passive, like bank interest, you might be receiving multiple sources of income and not even really realizing that you’re doing it.
It’s always good to have some extra money coming in from somewhere. Whether that’s to put away for nice-to-have things like holidays or a new car, or in a rainy day fund in case the car needs fixing or the boiler breaks, having a financial buffer can bring a lot of peace of mind.
Sometimes we’re going through a tough period and know that a lot of money is going to go out all in one go. That might be school tuition, car insurance, or moving expenses. So, you might take on a side gig to help cover the extra costs.
As I said, there are a lot of reasons why you might want or need multiple sources of income, and the reasons can get quite personal and emotional at times. Having a buffer or generating extra income is a big deal for many of us, and there are plenty of ways to supplement your income which I’ll go into in further detail below.
There are different types of income and different kinds of job roles and opportunities in each one, so there’s bound to be an option that fits in alongside your lifestyle and main source of income.
7 Different Types of Income
Okay, so before I get any further into specific job roles that will help generate multiple sources of income, I’m just going to go through the different types of income available. Here there are seven different types, but these are pretty broad categories with plenty of opportunities within each bracket.
Right, let’s get started!
1. Rental income
If you’ve got a large chunk of change, some inheritance, or have saved up a lot of money, you might consider getting some rental income on the side. This might mean that you become a landlord, or move more into the AirBnB space with holiday rentals and lettings.
Some people make a complete business and income out of this alone, but it can also be a side gig or relatively passive income if you hire a property management company to run the day-to-day affairs.
Rental prices have been skyrocketing in the last few years, so it is a very good source of income if you can purchase property in an in-demand area. Of course, you need to make sure your property is up to code and find respectful tenants, but on the whole, it’s a solid method of income.
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In terms of getting into the holiday rental industry, renting out a room, or renting out your own place on a temporary basis, you need to make sure that you have cleaners, security, and all that good stuff set up.
Again, you’re going to want to have a place either near the action, close to transport, or so remote that it’s a retreat-style selling point. Holiday rentals are predominantly about location!
Remember that the property market does fluctuate pretty wildly at times, so make sure you’re not buying at the top of the market. Also, consider buying overseas if you can so you can double up as a holiday or retirement place for yourself in years to come.
If you’re a first-time buyer with a mortgage, you might have restrictions on renting out the property for the first year, so check the small print before making any big plans!
2. Earned Jobs and Side Gigs
This is the most traditional means of income. Earned income is your everyday work. Whether that’s working in a bar, running a law firm, being a politician, or anything in between, that’s all covered. You get paid by a company, your tax and pensions are deducted and you’re left with the results. That’s the vibe here.
With side gigs, that’s all your typical extra jobs that aren’t running an actual business. So, if you’re a delivery driver, picking up shifts in a supermarket on the weekends, or doing a couple of hours of data entry, these are all your classic side gigs.
Again, you’re being paid through a central system where your employer should be taking care of taxation.
Okay so let’s get into investments a little bit. If you invest in a company and they make a profit, they have to make a choice. They can either reinvest it back into the company or they can share the profits with the shareholders. These profit-sharing amounts are called dividends and are usually paid quarterly.
Once you’ve invested, you largely don’t have to do anything, so this is a fairly passive means of income. The more investments you have, the more opportunity for dividends you have, and you can reinvest the dividends in other shares, stocks, or funds and create a nice little investment portfolio.
Obviously investing comes with its own risks, and it’s not a guarantee that the company you invest in will make a profit, or that it’ll opt to share the profit with shareholders, rather than reinvest in the business.
Of course, you can always sell your shares or stocks, but the price will be determined by the markets, so there’s no guarantee that you’ll make your money back. As with anything financial, only invest what you can afford to lose.
4. Running your own business
Do you have a bit of an entrepreneurial spirit? Starting your own business can be a great way to earn more income alongside your regular job. That might be setting up an eBay store, selling your old stuff, making something new and creative and selling it at markets and online, or running a consultancy or freelance business.
The main difference between these kinds of jobs and side gigs is that you are responsible for any tax, forms, or red tape surrounding your income. If you earn over a certain threshold each year from your business or freelance endeavor, you need to register and pay tax each year.
This means that you have to keep meticulous accounting books and make sure every cent is accounted for. It’s a lot of extra work, but tax evasion is how they caught Al Capone, so don’t take the risk.
Often running your own business starts off as an extra source of income and gradually, as business picks up, it can become a main source of money. There is added pressure as there isn’t a boss to fall back on – it’s all on you – but it also means that you have full control and get to call all the shots!
Have you created something unique and special that other people want to buy? Whether it’s copyright, patent, book, album, or more, royalties can provide a small additional income. Again, once your work is out there, royalty checks are largely a passive income source.
You might have to get in touch with a lawyer to make sure all your ducks are in a row and everything is set up correctly. Even if you write a book and self-publish, if you then sell the rights to a publisher, they have to send you a check for royalties from then on! No extra work is needed.
If you want the easiest form of passive income, look at interest rates on bank accounts, ISAs, bonds, and more. If you can afford to put a chunk of money into a bond and not access it for three years, you can get some pretty decent interest rates on it. It definitely makes sense if you have a chunk of change sitting in a low-interest accessible bank account.
With the interest rates being all over the place, if you can find an ISA or bond with a semi-decent rate that you’ll be able to lock in for a fixed period, it’s really going to make a difference.
Again, once you’ve moved your money around, it’s entirely passive income and you’ll get a statement either quarterly or annually. Once your bond period is coming to an end you’ll receive a letter asking if you want to withdraw it or lock in again. Bond periods tend to be 1-3 years with three years having the best rates.
7. Capital gains
So on the simpler end of multiple sources of income, we have capital gains. Essentially, this is when you sell something for more than you paid for it. This can overlap with many other styles of income, as assets can include property, stocks and shares, physical items, and more.
For instance, if you sell a vintage piece that you found in a cheap thrift store for more money on Depop, that’s an example of capital gains, just as selling stocks for a higher amount is. All of these income types work at multiple levels from small gains all the way up to millions, depending on your assets.
9 Multiple Sources of Income Ideas
Okay so we’ve gone through the different types of multiple income sources, and briefly spoken about the kind of roles that fall into those categories, but let’s dive a little deeper into the specific opportunities. Some of these might not be for you and some might be worth a try.
When it comes to multiple sources of income it’s all about what works for your situation and schedule. If you need to be at home all the time for the kids or the dog, becoming an Uber driver on evenings and weekends isn’t going to be as appropriate as maybe becoming a virtual assistant.
Okay, so with that in mind, let’s get into it.
1. Become a landlord
If you have the financial means to buy another property outright or be approved for another mortgage, becoming a landlord might be a viable option for you.
Whether you manage the property yourself or pay a third-party property management firm to take on the day-to-day and contract side of things, there’s a varying amount of passive to active responsibility.
Of course, there are numerous costs to consider after you buy the property. You need landlord’s insurance, to be compliant with all your safety certificates, have a reserve for any fixes and problems that might arise, and those management and rental site fees. It’s a lot.
Even if you’re renting to friends or family members, there are still legal protections and basic housing rights involved. If the boiler breaks, you need to be able to fix it ASAP. If a tenant leaves, how much notice do you have to get a replacement person in, and have the place cleaned before they move?
Becoming a landlord is a big undertaking, but buying property on the whole is a decent investment. The rental price you charge will vary depending on the area, but you need to make sure it covers at least the mortgage, plus some surplus to cover the fees that we mentioned.
Any money left over becomes your income or contingency for repairs. Obviously, the profit will vary based on the housing market when you bought the property, interest rates for your mortgage, and the average rental price for the area, so factor all those in before you make the leap.
2. Build a blog
If you’ve got a flair for writing and creating content, or have a specialty that you want to share with the world, you can start earning money by building a blog. Get yourself into a niche that’s not super popular, fill your site with content and then use paid ads and affiliate programs to boost your income.
Obviously, this is not going to happen overnight. It takes a while to build a good enough following and ranking to make a difference with affiliate marketing or ad spending. It’s a long road but once you’ve established some commercial partners and started earning through social media programs too it can make a real difference alongside a more traditional earned job.
I should know, that’s exactly what I do here!
3. Freelance on Fiverr
If you want to start earning money immediately, you can freelance on sites like Fiverr or Upwork. These are great for writers, editors, photographers, graphic designers, devs, and more. If you have a marketable skill that people want to pay for, you can make a lot of money remotely.
The benefit of these platforms is that they tend to verify both the businesses and freelancers and have a complaints process to protect both sides from scams. This does mean that you have to pay a small commission of your pay to the platform, but it’s worth it for the wealth of opportunities that are added to the site each and every day.
Some of the freelancing gigs on the site might be one-offs or short-term gigs, whereas some are longer projects or ongoing working relationships. It can become really easy to build a portfolio and a client base on these sites and gradually find yourself with your own business.
4. Start investing
If you don’t mind a bit of risk, you can start investing money in stocks, shares, and funds. Over time you might receive dividends, or be able to sell those assets for a larger profit. It’s not a guarantee and it’s definitely going to take some knowledge of the markets and different players in each industry to make informed investment decisions.
You can sign up for different platforms and consultancies that will invest your money in different funds and pots for you. This works similarly to a pension fund where managers will keep an eye on your money and make calculated risks to get more out of your money.
These services often come with hefty fees, but if you want a more passive approach or are dealing with large sums of money, it’s a good idea.
If you’re doing it yourself, there are plenty of smaller investment apps and beginner platforms that you can take advantage of and start using.
With some platforms offering lower priced stocks and shares, to banking add-ons where you can round up your spending to the nearest dollar, pound, or euro, and the extra change gets automatically invested in a mixed fund, there are a lot of different options depending on your budget and aversion to risk.
5. Start a home-based business
Since the pandemic, many of us are opting to work from home to reduce commuting costs and get a better work-life balance. So when you’re looking for another source of income, building a business that you can operate from home might be as equally important.
Any business that relies on digital services can be done from home. Whether that’s a consultancy, freelance, selling stuff on digital marketplaces, or working in customer care or travel support services, there are a lot of home-based business niches you can look into.
Even traditional catalog companies like Avon or Mary Kay have shifted online and operate out of Facebook Groups and places like that.
6. Build a course or marketable resources
If you have a specialty or specific knowledge base that people want to learn about then you can make money selling courses or learning resources online.
For instance, if you have experience building a business, filing taxes in another country, or even moving your life halfway around the world, there are people out there who want to learn from your expertise, and will pay for it!
If you’re making eBooks and downloadables, you can sell these on storefronts like Etsy or through your website. If you’re making virtual courses or webinars, you can create a buzz with social media and ads before directing people to register their interest via email.
The beauty of online courses is that you can get clients from all around the world, and then you maximize your reach. You can also record the course and sell it as a webinar or resource afterward. Make those resources work harder so you can earn more income with less effort!
7. Become a virtual assistant
With so many people setting up home-based businesses and consultancies, there have never been so many opportunities for virtual assistants. Essentially, you’d function as an admin or secretary on a part-time or temporary basis.
So, any books or organization that needs sorting out that the business owner or boss doesn’t have time for, they’d kick over to you.
If you have experience or are an organized person then this can be a really lucrative job that is perfect for flexible location-based working. You’ll need a pretty good connection and time management to make this work, but if you’re good with office work, but don’t want to be office-based, give this a go.
8. eBay, Depop, and Vinted
A classic way to make some money on the side is to sell things that you no longer need or want. Sites like eBay, Depop, and Vinted have made this easier than ever, so it’s possible to clean out your house and get some cash in the process.
Some places will have more fees than others, and some might have more premium items than others, so check out your options and see where your items fit.
If you have a lot of items or sell on behalf of friends and family members you might be able to set up a decent business buying and selling specialty items. Especially if you don’t mind combing through thrift and vintage stores, you might find a couple of gems that you can sell for a small fortune.
Also, keep an eye on styles that are popular with celebrities and are likely to sell out quickly. If Kate Middleton wears a high street dress, it’s sold out a day later, if you can get that dress you can sell it for a premium price online as it’s not available anywhere else.
The same goes for special edition sneakers or shoes – that’s where you can make some real money.
9. Uber, Lyft, Deliveroo, and Postmates
If you’re looking to pick up some odd shifts on your days off or in the evening, and want to work hours on your own terms, you can enter the gig economy as a delivery driver, or Uber or Lyft driver.
Honestly, you won’t make a ton of money doing this as the rates are not great, but if you want something a little more ad-hoc, then you can give this a go.
Time to Get Started Building Multiple Sources of Income!
Having multiple sources of income is never a bad idea if you have the time to either work on a couple of projects or set up a passive revenue stream. With the economies of the world being so unreliable, having a backup plan or a fallback can come in really handy if the worst happens.
Alternatively, it can provide you with enough money to travel, buy a house, or live life on your terms. Money doesn’t always bring happiness, but it can bring you a lot of freedom and peace of mind.
So, why not give some of these ideas and opportunities a go and earn yourself some extra dollars?