Mar 132017
 

I recently came across an informative and inspiring thread on the financial independence subreddit about additional income streams that people have. Here are some ones I thought could be relevant to people who read this blog.

Ideas for Extra Income

  • Rent your car. Turn a depreciating asset into an income stream. ūüôā “I rent my car out on Turo. It’s the AirBnb of car rentals. I live walking distance from work and rent it out all the time. I rent my Wrangler for about $50/day and have been making around $800/mo in gross margin.” ~plz_callme_swarley
  • Invest in a rental property. “I’ve got two rental properties, both I pay someone else to manage. I made 8k off of one last year and 21k off of the other one in net profit (new roofs are expensive). They’re both paid off and provide a small but steady trickle of income, I’ll probably try to save enough to get 1 more each year for the next 7-8 years.” ~SEJeff
  • Buy profitable blogs and websites. “Bought a few niche websites on Flippa, earning a little over $100 per month. Import some stuff from China and sell it on Amazon as well.” ~jb611
  • Walk other people’s dogs. “Signed up through rover.com but now my clients pay in cash to avoid extra fees. I only have 2 clients because I’m too busy to take on more. I mostly work on lunch break from my job with occasional overnight stays. Make about $300/month….I recommend signing up on Rover.com. The process takes a little effort and you need 2 references – I had my girlfriend write one and a buddy wrote the other. The site isn’t extremely easy to navigate which is partially why my clients pay me under the table now.” ~CalPolyJohn
  • Write online. “I make about $3,000/month editing Wikipedia for pay. I get my clients from https://www.buildersociety.com/, they’re great! I know a lot of other people doing this so if you want in, just start editing Wikipedia, learn the rules, and then all you need is just clients…..I can do a new page in about an afternoon and I charge $500-$1,000. It’s only 3-6 actual jobs/month. If you want to do it, make sure you spend some time editing the Encyclopedia to learn the rules.” ~TaylorSwift2015
  • Become a freelance translator. “Freelance translating (Japanese>English). Brings in $4200/month pre-tax for 50 hours/month of work…Professional (and non-professional) translators usually create profiles on both ProZ and TranslatorsCafe to look for and offer work. People with no real translation background may use a site like Gengo, whose rates are considerably lower (3 to 8 cents/word). Finally, it is also common to Google “Translation agency” and send your resume to as many translation companies as possible (rarely works, but then again you really only need 1 good client to establish yourself).” ~nakoyao
  • Monetize your lifestyle/hobbies. “I rent out my place on AirBnB when I’m travelling ($6300 in 2016). I offer private lessons as a cross-country ski instructor ($1600 this season). I host house(boat) concerts ($1-2000/event). My friend sells the overflow from my vegetable garden at the farmer’s market ($700). I take tourists out fishing/netting/ice fishing/canoeing ($3200 in 2016)” ~Holy_BatLogic
  • Teach English online. “I teach online classes for $20/hr. Just started last month, made $692 in half of February.” ~OzarkCatholic¬† “There are online tutoring gigs for ESL, you can get 16-20 an hour pretty easily. Check out VIPKids” ~brikky

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Jan 092012
 
Earning side income is often touted as a good way to subsidize one’s full time job. The more work you have the more money you make. But there is a hidden benefit to it that is often overlooked called the¬†compound income phenomenon, which works like compound interest.¬†The more income streams you have, and the longer you keep them for, the faster your total income will grow. Below is a graph of my after-tax, monthly earnings from various income sources in the past 3 years (relative).
Full Time: Graphic Design related work
Part Time: Design related teaching job (hover mouse over the graph to see notes)
Dividends: Stock dividends from investment portfolio
Tutoring:  Private tutor lessons

      
¬† ¬† ¬† Over time, instead of a constant growth rate, there seems to be a shift towards geometric growth.¬†This all happened one step at a time, but it also occurred¬†very naturally.¬†Even though I’m working more now (about 50 hrs a week total), on an hourly bases, my income is still growing so that shows progress. The reason multiple incomes can accelerate each other’s earnings¬†is because the difference sources all work together to create mutual support, and maximize each other’s earnings power, as well as unlock any hidden potential faster.¬†

¬† ¬† ¬† For example, to sharpen my skills at my full-time job and grow my salary, I can use my part-time job to practice those skills. My part-time income will grow too because my full-time job gives me constant and relevant experience in the field so I can bring new skills to the table, which gives me an advantage over other teachers who may not have that extra industry exposure. My part-time job also gave me the experience to try private tutoring, and through my full-time job I made contacts and found my first student that way. As these earnings grow and I have more savings each month, it’s only natural that my rate of investing grows as well, which translates into more dividend income, which I can re-invest into tutoring supplies or back into dividend stocks. Each income stream builds on top of another. This synergy and compounding effect allow me to bring in revenue much easier and faster than a single job ever could, even with over time.
      
¬† ¬† ¬† I wouldn’t be as profitable at my part-time job without the experience of my full-time employment. I would have to drop my hourly tutoring fee if I didn’t have current teaching or industry¬†credentials. My dividend income wouldn’t increase as this rate if I didn’t have my other jobs and any savings. Separated, income sources are mundane and predictable. They can’t grow nearly as quickly. A job is a job. Work is work. But combine a few of them together, they can leverage off each other’s strengths, and you will have yourself a recipe for success!
     
¬† ¬† ¬† If you currently work part-time or even full-time, take a minute to consider picking up another income stream. Over time you too can experience the power of compound income. ¬†In another post I’ll explain how pretty much anyone can make some side income by tutoring. In a nutshell: Decide what you’re good at and post an ad online selling your knowledge.

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[edit¬†on August 1st, 2013] I have just completed a follow up to this post. I have procured another source of income and updated the chart ūüôā ¬†[/edit¬†]