How Second source of income can bolster financial stability

Kolkata: With inflation regularly veering out of the comfort zone of the common person and economic insecurity gnawing at a man's head at the time, it is a great idea if one can think of a second source of income. A second income can help bolster a family's financial security and can also help in improving the quality of life. However, while planning a second income, one must not choose something that he/she would strain to do. The simple logic: a second source of income comes in addition to one's main profession which already puts a lot of stress for an individual. Therefore, if the second source of income puts additional stress on the person, it won't be sustainable.

Now a second income source can be passive and active. A passive income source is one that doesn't require constant effort or investment from the individual. It can easily cover entirely, or a part, of your regular expenses such as utility bills, child's education expenses, grocery bills etc. It can be of great help if you are unable to work for some period of time due to unforeseen emergencies such as retrenchment. A rental income is a common and most convenient source of second income that requires no effort but can generate regular cash flow. Sometimes, if a second income is significant in amount, it offers you the liberty of not being chained to your regular job, come what may, and look around for a job with better terms and conditions.

Also Read

Sukanya Samriddhi Yojana: How to build Rs 72 Lakh corpus for your daughter

HSBC is bullish on these three metal stocks: Up to 25.72% upside; know target price of each

Two international deals, strong order book but price below Rs 60: Know details of this stock

Stock Market investment

Investing in the stock markets is one of the popular avenues of second source of investment for a growing number of persons -- particularly among the youth. Equities are a high-returns asset class and can beef up your income significantly if you study a little and make careful investments. However, the world of equities is complex and one should consult sound experts and not invest on hearsay. 

Tutoring

Giving tuitions is a time-tested method to supplement your income. However, one has to be comfortable in at least one subject. You have to choose they class of students whom you want to coach. A pre-requisite of a good tutor is to be fully aware of the syllabus and prepare for taking classes. Earlier, while physical tuitions was the only option, nowadays taking online classes have become common. Online tutoring platforms are also available to help you in this matter. if you can teach well, students are willing to pay significant fees. Moreover, online tutoring can be done from your own home and you won't need to invest in setting up a classroom too.

Freelancing

Freelancing is growing for in a number of professions such as content writing for websites or companies, making graphic designs, building websites, offering consultancy in technology, marketing etc. if you have professional expertise in a particular field, consultancy work in that particular field can be easily undertaken. If you are a finance expert, advising about personal finance ideas can be a promising business. However, if you are a designer or a writer, you must create a portfolio for your potential clients to check.

Selling on E-commerce sites

Thanks to the internet and e-commerce revolution, more and more people are increasingly buying stuff online and are comfortable buying almost everything from apparels to food, cosmetics to jewellery online. So you can start an e-commerce business and start selling products and services online. E-commerce sites allow sellers to reach a large number of potential consumers by exhibiting their products and speaking about them online.

Create Your YouTube Channel

Making YouTube videos and launching one's own YouTube channel is growing in India. If you have a creative bent of mind, you can exploit it to create a second source of income as well as channelise your creative instincts. It can be in your own area of expertise (news-based current information, or culinary skills, or beauty tips and practices, health tips, financial tips or simply trivia). If your channel gets enough views, you can earn significantly from such a channel. To one must remember at least 1,000 subscribers and 4,000 watch hours must be generated in the last one-year period so that you can start earning from the channel.

Cooking

A significant number of people are developing a tendency to cook and some can cook tasty items during the weekend for neighbours and friends to begin with. With deft showcasing on social media, such activities can generate revenue.

Giving out on rent

If you have a small space on a road, or even a lane, and/or a flat in which you are not living, you can easily earn by putting them put on rent. This is the most secure and cherished passive income source in this country. If you have two dwelling units, you can easily offer the one not occupied on rent. If you have a room or shop that can be given out on rent for setting up a retail outlet, it can generate a handsome income for you month after month, year after year.