Follow These Routes To Increase Your Income

How would you manage yourself if your paycheck was suddenly cut-off? Maybe your boss was laying off people or the company decided to hire someone more ‘qualified’. Instead of getting depressed and shutting out completely which has become the norm let’s talk about increasing the sums that we can earn when we can. You may have a hectic job routine that pays good enough or a business that is climbing it’s way up slowly and is demanding a lot of attention. But there are a lot ways of earning of ‘supplementing’ your income from your day job both passively and actively.

Let’s start with the active ones. Active route of incomes require time and mindful investment.

1. Teach a few students in your vicinity: If you have a grip on a specific subject, offer it as tuition to students. It could be music, languages or a proper school course. Give it one to two hours of your time and see the income grow.

2. Freelance your skills: If you are a graphic designer, a video maker or have learnt how to write story books but your day job isn’t any of these find connections who will help you with freelance work. Online portals have too much competition with lower rates so you have the offline world open to quote your own rates and show your quality.

3. Start a small business of selling products: you can help a friend source the products for you and start marketing it till they are completely sold and then restock. The profit is up to you to keep or re-invest. You could also start a small business of creative handiwork that you can easily do after your day job. This will make your work pretty unique and you will be able to charge as you wish.

Passive routes of income are built once you have established your active routes of income. These routes do not require your intervention but do need your supervision from time to time.

1. Investment in stocks: Buy stocks and let them sit. The dividends will accrue in to your account over time and all you need to do is check the statement once every 3-6 months. This passive income however is doing two things for you. Saving the invested amount and giving you profit over and above that.

2. Invest in real estate: Just like above, investing in real estate and earning a running income from that doesn’t require a lot of daily hassles. However, if you can not own real estate, you may consider putting up a room on AirBnB or Couchsurfing. This will prove to be an additional passive income source.

3. Income from fixed deposits/ bank accounts: This one is fairly easy. You put money in your bank and they pay you a fixed amount each month. You don’t need to worry when it is going to come. You know it will come and you just collect it.

Both these ‘supplements’ to income - active and passive; add to your income while most passive ones grow  your wealth also. How does that make your money look in the long-run?

Imagine you earn Rs. 30,000/- from your day job and you decide to take up teaching for an additional Rs. 20,000/- per month. That brings the total to Rs. 50,000/-

You decide to put Rs. 25,000/- in the stock market. Considering a company that gives out dividends every 3 months at 9%, the company pays Rs. 9 for every Rs. 100 invested, which is Rs. 2250/- per three months. For a year that is Rs. 9,000/-

Your annual earnings for the year is (50,000*11) 550,000+25,000=575,000

Add to that the dividend of Rs.9,000 = 584,000/-

Plus you still have your initial Rs. 25,000/- that were invested in the market saved till year end.

Which is in stark difference of what could have been (30,000*12) 
Rs. 360,000/- only!

So would you employ a mix of active and passive streams of income to supplement your lifestyle or just carry-on with your day job?

Uroosa Kanwal writes on personal finance and is working on her own small idea to help bloggers. You can find more of her writings at Finance It Out!


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