Income Diversity – What is it?

Income Diversity – What is it?

Even if you have a solid job that pays reasonably well, you might still want to think of ways to protect yourself against fluctuations in the economy.  Experts at Caledonian Bank Limited stress that having more than one revenue stream – income diversity – can make the difference between mere stability and tangible wealth.

Income diversity includes all methods one might use to earn money, including investments.  To those of us who might not be in the economic top-tier, however, income diversity probably means holding more than one job.  While having multiple jobs is certainly necessary for a significant portion of the population (unfortunately), if you have a mind towards acquiring wealth, you might want to consider supplementing your current income.

But how is it reasonable to have multiple jobs in this economy, when so many people don’t even have one?  If you aren’t able to find a second job, or a second job that yields worthwhile income while fitting into your schedule, here are some other ways you can use to diversify your income.

Start your own business.  Of course, if you’re thinking big, like a major entry into the tech industry, you’ll need to invest significant savings as well as acquire additional capital, and that poses a risk many of us aren’t willing to take.  However, there are ways to supplement your existing income without having to go on “Shark Tank.”  If you have skills that other people may want to take advantage of, you could begin a freelance consultancy.  If you have a hobby website or blog, you can monetize it by using one of the many available search engine tools.

Asset management.  According to the experts at Caledonian Bank Limited, the wealthy are always looking at ways of making additional income, even if their primary revenue stream is substantial.  Asset management is not simply investing in stocks, since investments in property and commodities can often still be profitable even when the stock markets are on the decline.

Make your hobby work for you.  You may be surprised at the number of hobbies that have turned into full time, lucrative businesses and careers.  The key here is passion – if you believe in something – whether that be a college based dating site (the original Facebook), renting out your spare air mattress for an out of town guest (the original AirBnB), or creating a web page to find a new laser pointer (the original Ebay) – then you have a much greater chance of surviving and building something special.