For the majority of people, income is earned by swapping a lot of time and effort in return for monetary compensation. Incremental income, on the other hand, is something else entirely. It means to earn income with little or no time and effort on your part. Finding ways to generate incremental income can help increase wealth, giving you more financial independence and flexibility to choose how you spend your time.
People pursue incremental income for a variety of reasons. Some people have to do it out of necessity, as a way to make ends meet. Others get involved with projects — such as selling e-books or creating educational materials — as a way to make money from their hobby or passion. Still, others create incremental income streams as part of a long-term goal to build an abundance of wealth for themselves and their kin.
Whatever the primary motivator, we live in times when having a way to generate incremental income makes sense for just about everyone. If the current pandemic has taught us anything, it has shown us that life can change drastically in a second. Our solid financial plan and secure job may look very uncertain tomorrow.
The accompanying resource, by Renovo Financial, makes a great starting point for anyone looking for ways to create, maintain or expand their financial independence. These strategies have been proven successful, and can likely be sustained over months, years, or decades — depending on how your financial strategy’s timeline looks.
In addition to these incremental income ideas, the resource contains some important questions to consider as you decide which idea to put into motion. While incremental income appears to be easy money, the truth is successful incremental income strategies involve varying levels of experience, expertise, preparation, and oversight. Additionally, different incremental income strategies carry various levels of risk and require varying amounts of capital to get started.
In conclusion, the bottom line is to be careful and thorough in your exploration of incremental income options. For example, when it comes to risk. It’s much riskier to invest $5,000 in a portfolio of growth stocks than to rent your lawnmower out to your neighborhood. Of course, the payoff on the first investment has the potential to be much bigger— but you’ll have to wait longer to get it, and there is always the possibility that you could lose money. Between these extremes are such things as, say, a $2,500 investment in dividend stocks or becoming a tutor or coach.
Whichincremental income option is the right one for you? While we can’t give you the answer, we think you are almost sure to find it in the following resource. To learn more, please continue reading.
This infographic was created by Renovo Financial, a property investment firm