Different ways to create additional side income

 Different ways to create additional side income 

The Internet is flooded with techniques that teach you 'How to generate passive income'. The reason being a multitude of people, who are uncertain about their future. So they want to generate additional streams of passive income, which can help them sail through tough times. However be warned that generating passive income is not easy as it sounds. It requires consistent effort and a lot of patience. The reason it is called passive income is : You just need to put an initial effort to establish your source of passive income; the results are then generated passively even when you are not actively working on it. There are many ways to generate passive income. Most of them require a lot of start-up work and some initial cost.

There are a variety of ways to generate passive income. Some require a little effort of initial setup and then you can enjoy the benefit in a year or two. Different ways of generating passive income are:

Investments

1. Deposit your money in a high yield savings account or CDs. Surely you will get at-most 1-2% of interest but if you deposit a lump sum amount then the amount in a year is not that bad. If you deposit $1000 then you will earn $10 in a year. If you don't need that original $1k then surely earning $10 on it without any effort is not that bad.

2. Buy a balanced mutual fund which will give you 3 to 6% of interest. However, there is a risk of losing money in a mutual fund if the market is not doing well.

3. Buy stocks when their price is low and sell them when their price has reached a higher value. You shouldn't buy stocks of a company without doing proper research. 

4. Buy stocks that pay you a dividend. Dividend is like some interest on your money so with dividend stocks you will benefit in two ways: one is through dividend interest and other is through capital gains. 

                                                        Image by Nattanan Kanchanaprat from Pixabay 

Selling Skills

If you are good at something then you can sell your skills on the following websites:

1. Fiverr.com

2. oDesk.com

3. Craigslist.com : Watch out for spam and intruders. If you have to meet a buyer in person then meet them at a public place. 

Selling Goods

If you have some household stuff that you want to get rid of then you then sell them online. Or if you are good at some craft then you can make them and sell them. Popular options to sell your items are:

1. Etsy 

2. Craigslist

3. eBay

Property Rentals

1. If you have an additional room in your apartment or house then you can consider renting it.

2. If you have a rental property then surely you can make money by renting it out. It requires a good amount of management and diligence to make some money through rentals. 

                                                                Photo by Mike Johnson from FreeImages

Conclusion 

These are some tried and tested methods to make some additional income. Method 1 requires minimum effort of all. Methods 2 to 4 are not passive and require some effort. However, the amount of effort required is not much once the setup is done. 

Hope you enjoyed the article, do let me know in comments down below if you have tried any of these methods and made some passive income in the process.