How To Diversify Your Income
Imagine you come to work one day and your boss pulls you in to his office and he gives you the news that you are being laid off. Do you have a plan? There is an old saying “Those who fail to plan, plan to fail.” Before we talk about diversifying your income lets talk about planning for the immediate future before you start trying most of these ideas you should have at least 6 months salary saved away for if you loose your job or if your car breaks down or someone in your family has a major medical problem or what ever else life throws your way. Also you should be putting money away for some kind of retirement. Be it through your work or a private plan like a Roth IRA. Don’t worry if you can’t do either though that is ok and why I created this site. Because I have been there working long hours, but still under crushing debt and feeling like the hole I was in was impossible to get out of.
Different Ways To Bring In Income
Why should you diversify your income if you are happy with your job or your job pays enough then why bother? Well first you never know what the future holds. You could be laid off or your workplace could become bankrupt and collapse taking your job and your retirement with it. I have seen it happen and the people who were most affected were the ones who were most loyal to the company. Another reason is I don’t know anyone who could not benefit from having more money.
Diversification Investment Strategy
- First is one that I have mentioned multiple times on this site and that is affiliate marketing. Not only does it have a very small price for entry sometimes as low as $20, but it has such great potential to make you lots of money. Now it is not a get rich quick scheme. I will take time and hard work but if you do put the time in then you can make a pretty good amount off of it and you may even make more then your work pays. For more information check out my article about affiliate marketing. Wealthy Affiliate is the best platform to get started.
- Another way to diversify your income is to start a drop-shipping business. This isn’t as hands off as affiliate marketing but it can make you more money faster. Some people have seen figures well over $10,000 a month with hard work and dedication. For more information check out my article about it.
- Buying rental property. Now this is a business all of its own, you can outsource some of it, but when things break it will always be you paying for it. Needless to say you have to set some money aside for fixing things and extended vacancies. The way to get into this is to find a property for little in an area where the rent is good enough to make back your investment. Take this example I know a guy who invested in houses in Indiana when the housing market there had tanked. You could literally buy a mansion for about $60,000 so he bought about 60 properties over some time. Now think about this if he was able to pay off the places fast, which he was able to, at the end of a month even if he only charged $500 a month that would still be over $30,000 a month he could pay off a mansion every two months with that kind of cash flowing in. Another guy I know found a house in a depressed college town and got a mortgage for $300 a month he charges $500 a month that is $200 he pockets and he has his tenants pay off his mortgage. This is a great strategy, but you really need to handle it like a business. You need to make sure you get the property for cheap so you can make a quick return and start making a profit.
- Speaking of making money off of property, there is also property flipping. You must buy a property for cheap then fix it up, and sell it for a much higher price. The best way to do this is to find a property in a good neighborhood that is in poor shape. You negotiate it down, making sure that you can actually fix up all the problems so make sure to have the house evaluated well before you think of purchasing it. Another way to get a property for cheap is to get it on a tax lien, more on that later. You have to flip the house within 2 years this way you won’t pay capital gains tax on the house you are trying to flip.
- There is another kind of flipping and that is of web domains. It is the same concept you find a web domain that is trending or is a good web domain to begin with say like Gulfcenter.com you fill it out with pages and content and you flip it for more then you paid for it. Depending on the domain name they can go for really good money. Most people who make money with this look for new technology like when a new operating system is coming out or new type of expensive gadget and they buy up all domains that could relate to it. Then offer them to the company for a price. Another type of flipping is called farming in games like World of Warcraft or some other online game. Some people made amazing money property flipping in a game called Second Life. They would get property in game build a house on the virtual land and sell the house and land for real cash. Same thing for World of Warcraft people would build up a character with great equipment and sell the character for a large amount of money.
- Buying a house on a tax lien. Tax liens are an interesting thing if a person is delinquent on their property taxes then you can get a tax lien on their house and if they do not pay their taxes in a certain period of time then you can have the option to buy the house for way less then it is supposed to sell on the market. Now first a tax lien is a good investment since it will normally net you 10% if they pay their taxes off or you can sell the property if they don’t. It does have its risks though, you could be saddled with a worthless piece of property that will not net you a return at all. Secondly someone can come in and out bid you and take the tax lien from you.
- There is the stock market, though, my information on this is pretty limited. What I do know is follow market trends and invest stock in companies that are only going up and also it is nice if they offer dividends. More on this as I research it more.
- Online arbitrage, this one used to be big it has gone down somewhat since a new software made it too easy, so the market was flooded. The software is called ArbitrageUnderdog. There is money to be made but you have to work at it. The concept is to go on craigslist or some other site like it for online jobs and find someone looking for a job to be done like web design or a graphic for their business. The skies the limit just make sure the job can be delivered digitally or at least via mail. Then you find someone to do the job cheap and you use their credentials to bid for the job, but make sure you get paid well and the other person gets paid little people normally use fiverr for this, but there are others. Fiverr is a website where jobs are done for five dollars, mostly you can find someone to do anything on there even film weird funny videos. Though the quality varies and people seem to pad their ratings, also it seems most of the people working on fiverr are not English speaking. I suggest you really research your fiverr person and make sure you have infinite revisions. Like I said though this market was flooded with the advent of the aforementioned software.
Scams To Really Avoid
- The first and I really have to get this out there is MLM (Multi-Level Marketing). Someone who says they have a business and want you to join be skeptical. More often then not it is an MLM. Now that is not to say that they cannot make people money. I personally in my life have known one person who made it work. I have met many others who are either just starting or have already given up though. You see to make MLM work you constantly have to be selling, hounding people to either, buy your product or become a distributor under you, this is your main goal. This makes every encounter a sales pitch and tends to drive people away rather then attract people. I personally have a friend trying It Works and she is blasting on FaceBook all the time how we should buy her product or join her team so we can live the life. It gets pretty annoying. Now you know I am a big fan of Affiliate Marketing and you may draw some similar comparisons, but it is markedly different. First off you are not always selling you are trying to help people find information about something they already are interested in. You provide them information on their search and providing them valuable information. You build a relationship with your reader show them you can be trusted and in return they may click on your affiliate link. If not then at least they leave your website with more information to make a decision. Affiliate marketing is a business and only works with building a relationship with your readers.
- I don’t quite know how to put this it is a hard one to nail down so I will explain this scam. There are many tests out there that can better your financial standing like a Pharmacy Tech certification test or a Post Office worker test. Now there are many people out there even institutions that will offer a class on how to pass these tests and for a small fee will give you the material to pass the test. The thing they don’t tell you in their sales pitch is that the material is normally readily available on the tests web-page or online and they are just taking your money to be the one to provide it to you. I have seen many people fall for this my sister included. She bought the expensive Post Office Exam prep course then found all the information was pulled directly from the Post Office’s website. My advice is do some research on the programs and see if you can’t find the information free first. Always be skeptical about these things.
- Really avoid scams about bidding either through binary options or some other stock market shenanigans. There is a guy selling his method to track the stock market and win almost all the time. The truth is it is like gambling, and can deplete your finances like gambling as well. Yes you can make money off of the stock market, it takes skill and reading trends this can either be acquired by free information on the net or going and seeing a financial planner. Oh and any online “Guru” who offers to take your money and grow it for you, Just Don’t.
- The Power Of Positive Thinking yes there are scams that take your money and just teach you how to think positively. Now I do believe that positive thinking is a big help in any endeavor, but it is not some cosmic magical force that will dump millions on my doorstep if I just believe hard enough. If it worked that way then many people would have the star of their dream showing up at their door. Maybe it does work maybe if I focus really hard then Scarlet Jo Hanson will show up at my door. Seriously though, keep a positive attitude and work hard and you will achieve your goals you do not need to buy some persons Unlock The Universe trick to work on that do you?
Thank you for your time,
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