Should your job be your only source of income? You may think that’s a nutsy kind of question. Of course, you say, my job is my income. What else is there? How else can I have income?
The good news here is that the economy is improving and the unemployment rate continues to fall. That means that except for poor performance, we’ll all likely keep our jobs. On the other hand, if the economy is improving, now may be the ideal time to strengthen your financial picture.
Saving is good. The question to ask, what do you do with the money you save? Savings should grow. Savings should be able to pay you. Savings should be able to generate income. Choosing what you do with your savings dollars is vital
Putting money into a CD or money market fund is safe, it generates a small income stream and it keeps money handy in case of a rainy day. Savings, CDs and money markets will generate a small return and will be available to care for the near- and long-term surprises that arrive in life.
The workhorse of your savings plan is likely your 401k. That is money set aside for the long-term when it should pay you back handsomely.
What about the remainder of your savings? Stocks, bonds, ETFs and other investment tools are one solution. There are other choices. What about putting some of your money into something that will pay you regularly – monthly, quarterly, annually? How, you ask?
Rental property creates income. The first thing that will come to mind here is a home or an apartment; they generate monthly income. But, not everyone has a spare home or apartment. Some of us may have a garage or specialized equipment. Perhaps the garage or the equipment could be rented to others.
Of course, there are costs to any kind of rental income. Upkeep of your property is important. So, too, is protecting yourself from the misdeeds of others. Renting property you own is not for the faint of heart; it is, however, a possible source of income.
Royalties and fees from books, music, inventions and other original work can generate regular or not-so-regular income.
Internet sales of e-books or products generates income. Not every book or product has the same level of success. It’s not likely your first book will top the best-seller list but then again, life often is full with surprise. Internet sales are niche sales to a very specific, targeted universe of prospects.
Ongoing sales commissions from work you’ve already completed can be another source of income.
It can be comforting to have income from sources in addition to your job.