The following is a guest post by Benjamin Lee about becoming financially independent. If you’d like to contribute a guest post to Money Q&A, check out our guest posting guidelines.
With the way the job market is, relying on a single income stream just doesn’t cut it anymore. In fact, with mounting debt and stagnating wages, chances are that millennials will not have enough to retire.
You could just as easily be replaced by a robot tomorrow or your job may be outsourced to a third-party country. Thus, at the way things are going, it should come as no surprise that the new generation is worried.
Fortunately, there’s still hope on the horizon to become financially independent. Advancements in technology and social media have made it possible for a savvy entrepreneur to develop various streams of income. Nowadays for anyone with an internet connection and some creativity, it’s actually quite possible to sustain yourself on a steady stream of freelance work.
Also, with some careful investing and research, technology has made it possible to develop passive income streams. Passive income is described as funds earned without your having to involve yourself. Imagine that, being able to earn money in your sleep.
In this article, we’ll take a look at some of the best ways to generate a secondary source of income and become financially independent.
1. Dividend investment
Learning how to make your money work for you is essential if you’re to achieve financial independence. Investing in stocks and other dividend paying investments is one such way of doing so.
Known as dividend investing, this strategy focuses on building up a solid portfolio of dividend paying stocks. While some investors prefer to buy low and sell high, dividend investments look for steady returns and solid dividend growth rates.
The dividend payments you receive means that you’ll be able to have a steady cash flow without having to do anything. From here, the dividends you received can be used for reinvestment or other purposes.
2. Take paid surveys
One of the easiest ways that you can earn extra money is by taking paid surveys. Usually, companies looking to gather data hire third-party agencies such as Surveyjunkie.com to conduct surveys. Participants of such surveys are usually rewarded with cash or points of some kind.
While you’ll most likely never get rich doing surveys, paid surveys allow you to earn extra cash to cover the rent or pay for groceries from the comfort of your own home.
3. Invest in cryptocurrencies
While cryptocurrencies have long been the favorite of criminals and dark web users, increased acceptance amongst the general public means that they have become a viable investment. With Bitcoin being accepted by major retailers in the U.S, it won’t hurt for you to invest on it.
Despite a relatively gloomy outlook initially, at the time of writing Bitcoin valuations have seen a steady increase as more investors snap up the cryptocurrency. Besides Bitcoins, you can also invest in a myriad other cryptocurrencis such as Etherium.
However, care should be taken when investing in cryptocurrencies. Their unregulated nature and volatile market conditions mean that you can quickly make massive profits or scary losses in a short span of time.
4. Create and sell online courses
Do you have a practical skill? Do you enjoy teaching? If you answered yes to both of those questions, you can consider selling courses online. Sites such as Skillshare.com allows tutors to upload and sell courses. For each course that you sell, you’ll earn a commission from Skillshare.
Despite the initial challenge of designing and creating an online training program, the passive income you’ll earn down the line will be much appreciated. Before you get started, you should ensure that your courses are clear and easily understood. With some practice, you’ll be a master in no time.
You can also create a Youtube channel with tutorials about your area of expertise. Even if you are just a sports enthusiast, with knowledge about MLB for example, people can be interested in your baseball expert picks and they will want to support you and subscribe to you. What can start as a hobby, can generate some income in the future.
5. Take on freelance work
Freelance work allows anyone with an in-demand skill to profit from his/her talents. From copywriting to web design and even accounting, freelancing allows you to earn money on a flexible schedule.
Most of the time, clients do not require freelancers to physically be on-site. Thus, you’ll be able to earn money from the comfort of your home office. Besides allowing you to earn a secondary income, freelance work is often a steppingstone for many entrepreneurs.
In fact, there are plenty of success stories of freelancers who were able to turn their side-gig into a fully-fledged business. With some creativity and dedication, you’ll be surprised at how much you can earn from freelance work.