The key to wealth isn’t your primary source of income, it’s the growth of secondary income through side jobs.
Consider this: the typical person has one full-time job, which represents one source of income. Let’s name this typical person Phyllis. As long as she’s employed, Phyllis’s job serves as a stream of revenue. Yet, Phyllis has far more uses of income than sources of income. She has to pay for rent, utilities, groceries, insurance, etc. These add up fast.
Her revenue stream is broader than any one expense stream, but, collectively, her expenses may run her revenue stream dry. In other words, we have all kinds of expenses, while we’re heavily reliant on one source of income.
If we want to build wealth and avoid financial stagnation, we’re left with two options:
- Reduce expenses
- Increase income
To build wealth faster, you either have to limit your expenses or grow your income. Both are easier said than done, but people often choose cost-cutting over increasing income.
Because people think in terms of what they can control. It sounds easier to cut back on dining out than it does to get a promotion.
That’s because it is, at least in that scenario. However, what people fail to realize is that they could increase income through new sources, not just their existing one.
Why side jobs can be challenging
Although additional sources of income sound really enticing, there is a downside. At least, temporarily.
To be upfront and honest, side jobs take time and effort. I know I’m stating the obvious here, it’s not like you can just snap your fingers and have additional income. But I’d be doing you a disservice if I didn’t paint you a picture of how challenging it can be.
I currently work full-time as a financial analyst at an investment bank. It’s a great job, but it’s a demanding job. It often drains both my time and energy.
If you’re wondering if it’s hard to manage both a full-time job and freelance writing, the answer is yes. It takes a strict routine and a lot of sacrifices.
Free-time that would have otherwise been used to relax is committed to writing – my secondary source of income.
Coming home after a long day at work and finding the mental energy to continue working can be a mountain of a challenge. That’s why it’s important to choose something you enjoy or that you’re good at doing.
Because it’ll make it that much easier. If you hate your side job, you’re going to burn yourself out.
Since I enjoy writing, it lessens the mental toll. I get my second wind when my fingers hit the keys.
Why the challenge is worth it
Time is the most valuable resource on the planet. Not money.
Alas, our society functions through transactions, so money is pretty darn important. Consider money as a vehicle that can take you where you want to go. That’s why it’s necessary to commit more time to developing and building multiple income streams.
It’s as much a time commitment as it is a mental adjustment. If you work towards building your wealth now, you’ll reach a state of financial independence and freedom that will grant you more time than you can imagine.
Then you can spend that time doing what matters most to you.
Examples of side jobs
I’m not necessarily saying take a part-time job at a fast food restaurant, although that is an example of ancillary revenue. But that type of revenue outlet does not provide much income relative to time expended.
Plus, there’s little flexibility or room for advancement. I’d consider this an emergency option.
Ample opportunities exist for secondary income. You can thank the internet for that.
Believe it or not, starting your blog is easy and nowadays, you can even do it with less than $20. You are all set in as little as few minutes.
My second income source is this blog. I spend 1-2 hours of my time every day and over the years this blog is generating incremental income which is now almost equal to my day job wages.
Caution – blogging will, initially, take all of your free time. And you’ll have to wait at least 6 months to earn your first check.
You can’t spell freelancing without free. Cheesy, yes. But it’s the truth.
As a freelancer, you’re completely independent. You decide what to do, who to work with, how much to charge, when you work, etc.
Most importantly, it can be a scalable revenue stream, meaning you can grow your business over time.
Here are a few types of freelancing:
- Editing and proofreading
- Data entry
- Virtual assistant
- Online tutoring
By now, I’m sure you’ve heard of Uber and Lyft. If you have a car, enjoy driving, and meeting people, consider becoming a part-time driver for either of these companies.
You don’t control your rate, but you do control your schedule.
This is an online marketplace that matches labor with local demand. If you consider yourself a handyman, this is a good option for you. You control your services, rate, and schedule, so it’s completely autonomous. Here’s a list of their more typical services:
- General Handyman
- Mounting and installation
- Moving and packing
- Furniture assembly
- Heavy lifting
- Personal assistant
Yes, there are actual apps for this. Companies like Wag and Rover pair you with dogs that need to stretch their legs. These apps function similarly to Uber and Lyft.
So if you’re a dog-person and want to make money spending time with some four-legged fluffy guys, this side job may be your calling.
The purpose of side jobs
To ensure this point gets across, I’ll say it again. The key to wealth is building secondary sources of income. The best opportunities hit the trifecta: scalable, flexible, and autonomous.
But it’s equally as important – if not more important – to enjoy what you’re investing your time in. If you hate it and you’re not happy, it’s not worth it.
You’re allotted only so many hours a day, and it’s up to you to determine how you’re going to spend them. But I promise if you commit free-time to developing different sources of income, your wealth will exponentially grow.
Consider it an investment in future-you. It’s a simple domino effect.
More sources lead to a wider revenue stream. More revenue equals more savings. More savings results in a happier future-you.
About the author: Carter is a professional freelance writer for hire, specializing in personal finance development. He offers blogging, article, and content writing services. Carter’s industry experience includes Private Wealth Management and Corporate Credit. For more information, visit carterkilmann.com or email him at [email protected]