With the increased income available at the side( in addition to one’s regular income from one’s job), not only does it increase day-to-day standard of living through increased cash flow, but also it becomes easier and faster to achieve financial goals: such as saving towards a holiday ( or towards retirement) or paying back a mortgage or loan. It also becomes possible to invest even further, leading to even more passive income to invest, and thus setting up a virtuous cycle of sorts that helps exponentially increase wealth.
The advent of the knowledge and sharing economy both afford new and innovative opportunities for generating steady streams of passive income. The internet has made it easy to start a business and monetise it, all from the comfort of one’s couch. Social media lends itself as a mostly free and convenient advertising platform with metrics to monitor and analyse traffic and algorithms to target specific markets. The sharing economy, on the other hand, presents a ready-made lucrative business that one merely has to insert oneself into.
Some specific ways to generate passive income are:
- Through conventional investment opportunities such as real estate, bonds and stocks: these can get you an extremely good return ( real estate in particular is quite hot nowadays stymied by high rental prices), however, these avenues require specific resources and technical knowledge that is hard to come by. Done without such knowledge, these investments can be a recipe for disaster. Such avenues also require a long term investment horizon- many people wrongly assume that the stock market is a short term arbitrage opportunity, and while it is sometimes, the real money comes from holding stocks that turn out to be winners.
- As mentioned earlier, the sharing economy provides a ready-made template to insert oneself within: for example, one could drive for Uber or make deliveries Deliveroo or Amazon on the weekends or perform tasks on TaskRabbit as a convenient way to earn some side cash.
- One could leverage one’s hobbies or skill sets into a side-hustle, photography skills could be harnessed by weekending as an event photographer,/ musical talent could be channelised by conducting piano classes for children, writing aptitude could translate into content writing, designing flair could lend itself to developing brochures/ logos/ branding for businesses, an interest in baking could flourish into a homemade gluten-free brownie business. The possibilities are endless.
- Internet-based businesses are relatively easy to set up given some basic web designing knowledge and what’s more relatively easy to monetize through advertisement clicks.
The ideal side-hustle is flexible but scalable at the same time and relatively less effort( remember, it is meant to supplement and not overtake your main job). Most importantly, it must not leave you feeling overwhelmed or stressed out. We at EcomConsutling help you identify opportunities and develop such businesses from scratch, providing stellar advice all through set up to seven figures.
Written by Bhavi Shah