Menu
0 Comments

Why is extra income important?



For every individual it is important to have an extra income other than their regular earnings from their job. A full time job will not satisfy all your needs. The income from a full time job may not be sufficient for a long lasting sophisticated life. That is the reason why people look forward to have an extra income apart from their regular paying job. It may not be easy to find an alternative job that will be relaxing and at the same time providing the income that you need. But there are different ways to earn an extra income without the necessity to have a second job. It is legal in countries like Germany to have multiple exployments but in a country like India, the policies are in such a way that we cannot work for more than one company legally.

Sources of extra income

Sources of extra income differ from one person to another person based on their area of interest. If people are hard working, they might be comfortable to work on a particular task by themselves and try to get the extra money. There are options where your money will work for you in the background and multiply based on your type of investments. There are three categories of people. One who spends their time to get some extra income and second who invest their already earned money to get an additional income and the third category is people who invest both their time as well as money to get an extra income.

It depends on your situation of life to choose which type of investment you want to make. These investments also comes with risks and no risk. The investments with no risk will be something like having a FD account in the bank and wait for few years to get some returns from the money that you invested. If the investment that you are making is quite good, the returns will also be very good without any factor of risk. If you are someone willing to take risks, there are other options like mutual funds, share market and other bonds. It is always advisable only to invest the money that you are ready to burn. That too especially if you are investing on a risky business, you should not be unhappy if the principle is lost.

Freelancing

Freelancing is for people who are willing to spend some valuable time in earning some extra money with their skills. The type and nature of the job can be different for each person. The amount of risk that you take here is very minimal because you are not spending any money to do freelance work. There are also websites that will require you to pay some fees to do freelance work for some clients. My advice is to refrain from using such websites because there are so many websites available that can offer you work for free of charge without any initial investment. Of course, they will be taking a percentage of the money you earn from the projects.

I started my work career as a freelance content writer online. I used to write lots of articles for multiple clients across the world. The initial days of freelancing can be quite challenging and after you attain some standards, you will be able to earn a good amount of money through freelancing. I know few people who quit their regular jobs to continue with freelance works. It need not necessarily be article writing or development jobs. There are also freelance consultancy service as well. You can select the area that you are interested in and work.

Passive income

This is purely for investors. Time is not a factor here. People who are good at investing money on business are usually the ones who get passive income. They will either be a good businessman who is already someone with a great portfolio or it will be an emerging businessman with lots of money to spend and invest.

In the case of passive income, you need not necessarily spend your time to get the income. It will just be the case that you invest your money on something and you will get a regular income from the money that you already invested. As Warren Buffet says “If you don’t find a way to generate money while sleeping, you will end up working until you die.” You have to reach a state where the money that you already own should be able to make additional money for you.

Image Source: Pixabay.com

Tags: , , ,

Leave a Reply

Your email address will not be published. Required fields are marked *