Depending on where you live, relying on one source of income could be risky to your finances and FIRE. What would happen if you get laid off? Do you have enough savings to support the needs of your family until you find another job? You need to start putting your eggs in different baskets and start expanding your income generation with secondary sources of income.
Benefits
- Generating more income can help to create an emergency fund to support your family while you find a new job, accelerate your retirement savings, invest in a rental property to increase your net worth and cash flow, invest in a business or create your own, pay off credit card debt, loans or your main mortgage.
- Being laid off from your main job won’t be the end of the world because you already have something that provides some income and now you may be able to work more on your side gig until you find something else long term.
- You can quit a job that you truly hate.
Cons
- Yes, this means working more early in the morning, evenings or weekends.
- Reduced free time to do recreational activities.
A side hustle does not have to be related to your main field. Pick whatever excites you, for example, monetize your hobbies: If you are a great guitar player, then give guitar lessons.
More examples of secondary sources of income
- Become a freelancer with Fiverr
- Music lessons
- Dancing lessons
- Tutoring math or any other subject
- English lessons
- Walking dogs
- Pet sitting
- House sitting
- Babysitting
- Washing cars
- Gardening
- Cleaning
- Selling handmade jewelry or crafts
- Cooking extra during the weekend and selling those meals
- Selling beauty products
- Reselling items from Facebook Marketplace or garage sales
- Create a YouTube channel
- Create a website
- Giving a hand to a friend or family member on their business on a part time basis
What strengths do you have? Can you turn those skills into a business? Secondary sources of income should be strategic to your long term goals and provide value on all that extra time you spend working and not relaxing. Make sure it is something you enjoy. Start now!
