59.7 million results when I searched on Google on ‘multiple streams of income’ on the day this article in written. This is a massive result. With the recent pandemic, many sectors are impacted, and many individuals suffered as a result from loss of their major of source income.
In this article, I am going to share with you some general big ideas on how to increase your source of income.
1. Investment Portfolio
Investment provides you with capital growth or income. Capital growth means the appreciation asset value or difference between the realization value and cost of investment. Income refers to the dividend, rental income or other incomes received by investing in the investment assets.
There are many investment options to increase your source of income these days. We have Exchange Traded Fund (ETF), Equity Crowdfunding (ECF) and Peer-to-Peer Lending (P2P) apart from traditional investment classes like property or stocks.
With new innovative products, you don’t need huge investment to kickstart your investment journey. Some can start from as low as RM100 or you can have a diversify investment portfolio with traditional assets and new investment asset classes.
Below are some of questions that you can use as guide to ask yourself as follows:
- What are your financial goals?
- What is your investment horizon? Is it for Income or Capital Growth?
- Does the asset class suit my investment profile?
- What is the amount that I can allocate to start with? Lumpsum or Regular Savings Plan?
- Can I do it myself or do I need assistance from Licensed Financial Planner or other professionals?
What is the purpose of building an investment portfolio? Different portfolios are to cater for different needs, for example cash/money market is to cater for emergency and or short-term needs.
Whereas for medium-term goals could be for holiday, buying house, for marriage and or starting a new family. For the longer-term goals, it is for replacement of active income and or for retirement. That’s how you build up an investment portfolio as a way to increase your source of income.
2. Business Income
There are several types of business income for you to consider like online food business, selling things at online platforms that can earn you additional income. Yes, many businesses are affected due to the pandemic, but you can still increase your source of income via a business income.
There was 7.5% increase in new businesses being registered in Malaysia year 2020 as compared to prior year based on the information available from Company Commission of Malaysia. Due to many who had lost their jobs or income; therefore, many self-employed or small entrepreneurs have either started their own freelancing or contract services and some had started selling at online social media platforms like Facebook, Instagram and or TikTok.
Gig economy which meaning temporary and flexible jobs have been on the rise and there are close to 4 million freelance workers in Malaysia.
3. Leverage On Your Existing Skills To Teach Or Share With Others
If you have certain skills or experience that you are good at which you can use it, teach or share with other individuals, that will allow you to earn additional income. For example, if you good in singing or master certain language, therefore you can create a course to teach others how to sing virtually either in a group setting or individually, as a way to increase your source of income.
It may include creating videos or posting photos with are beneficial to certain market segments may land you opportunity either to be involved as key opinion leaders or in the affiliate marketing. It may be teaching others how to cook food or bake a cake or maybe just a hobby of how to grow certain plants via the online platform.
3 Ways To Increase Your Source Of Income
What if these additional sources of income allow you to provide yourself and family with better lifestyle and provide you security in the event of uncertainty, would you think that sacrifices that you make now by building your new sources income worth your effort?
You are the only person is responsible to for your own future rather that relying on others. I would like to end it with a quote from Jeff Bezos, “I knew that if I failed, I wouldn’t regret that, but I knew the one thing I might regret.” Now that you know some of the ways to increase your source of income, which one do you prefer?
About the Author
Goh Chee Yong is a Licensed Financial Planner under Capital Markets Services Representative License (CMSRL) and Bank Negara approved Financial Advisor Representative (FAR). Prior to becoming a financial advisor, he spent eight years working in Big 4 audit firms and multinational corporations. He can be contacted at email@example.com