It’s arguably never been more important for people to derive a secondary income, with overall inflation running at 10.1% and continuing to run at a disproportionate rate of inflation.
It has never been easier to make money outside of your 9-5 job too, with one-in-six adults now working at least once a week in the so-called “gig economy” and approximately 48% of such workers also retaining a full-time job.
But is this path right for you, and what are the best methods of earning a second income in the current climate? Let’s find out:
Why Create a Second Income Stream?
As a secondary income stream will be combined with your usual, full-time job, this creates additional money that can be banked throughout or at the end of each month.
In the current economic climate, this should increase the amount of disposable income that you earn each month, with this capital available whether you want to pay down additional debt, increase the amount committed to savings or simply target further investment markets.
This also creates far greater financial security and ensures that you aren’t reliant on a single income stream, while simultaneously affording you greater flexibility in how you work and generate revenue over time.
What are the Best Secondary Income Streams?
OK, we hear you ask, but what are the best and most accessible secondary income streams in 2022? Here are some options to keep in mind:
1. Start an Online Shop
Whether you want to sell specific products or bespoke items (or even discarded, second-hand items), you may want to consider opening an online shop. Conversely, you could engage in the practice of ‘dropshipping’, which enables you to identify in-demand items and buy these at wholesale prices. You then sell these immediately at their recommended retail price (RRP), with the vendor shipping these directly to the customers and enabling you to realize the margin per item as profit.
2. Forex Trading:
You may also want to consider creating a flexible and passive source of income through forex trading. This enables you to trade freely in your spare time and through a mobile account, while it’s speculative investment vehicles that allow you to generate a profit without assuming ownership of the underlying asset. You can also use variable strategies to suit your knowledge base and philosophy, while we’d recommend using so-called “demo accounts” to hone your skills and practice in a risk-free and simulated marketplace.
3. Wider Investment:
If you do trade forex and are able to make a profit, you may consider reinvesting some of your gains into a wider selection of investment assets (such as stocks, bonds, and commodities). Safer bets include dividend stocks and targeting indices such as the blue-chip S&P 500, and over time you can look to diversify your portfolio and minimize your exposure to risk. This should also optimize your gains over time, helping you to increase your earnings and the reach of your Secondary Income stream.