#8 Why you should (try to) have a side income

In this edition I’m going to talk about the importance of having a side hustle. Having multiple streams of income provides you with financial security, and puts you on the road to build your wealth, and allows you to pursue your passions. With the ever-growing power of social media, and the evolution in technology, having a side hustle is easier than ever. Sounds easy enough, right?

Katrina Kaif has her own beauty brand, Kay Beauty, launched after years of partnership with Nykaa, earning over 100 crores in revenue. Deepika Padukone has invested an undisclosed amount in Blue Tokai Coffee Roasters’ Series B funding round. Virat Kohli and Anushka Sharma have invested almost 2.5 crores in the insurance company Go Digit General Insurance, which had its IPO earlier in the year. The key here is that for all of them, these investments are passive incomes. None of them are investors by profession.

The top 10 richest people in the world have all made their wealth from companies they founded that later blew up and became what we call Big Tech today. But as I mentioned in my last edition, start-ups are not the path to becoming rich, due to the high failure rate. It is better to direct your attention to other ways that are more feasible and work for you.

Firstly, let’s understand what active and passive income is. Active income is the money you work for. For most people, it’ll be their 9-5 jobs. You work and get paid for it. Passive income is income that you earn but don’t directly work for. Think the money you make from stocks or dividends. But with the era of layoffs and the volatility of stock markets, they aren’t the most reliable now.

Here are some ideas:

• YouTube channel: YouTube pays 53 INR per 1000 views. This translates to around 53,000 per million views.

• Digital Products: Think e-courses, e-books etc. Though they require initial time investment, the potential is worldwide as anyone across can buy your product.

• Rental Income: Heavy capital required, and generally not the safest in terms of returns.

• Remote Jobs: Especially in tech, remote jobs are a great way to earn and save that money on various aspects.

• Freelancing: Once you have garnered some experience, you can make accounts on Upwork etc and sell your services and get paid.

• Dividends: Investing only in companies that payout regular dividends, allowing you to buy higher shares in the company.

• Small business on Shopify: Shopify provides you with the option to build an online store and charges INR 20/month as platform fees

• Affiliate marketing: Promote products via your channels and earn a commission every time someone buys through your links.

This list is by no means, exhaustive. There is no guaranteed road to making money. It is a combination of hit and trial methods, most of which will either require time from you or some other form of investment. The key remains to figure out what works for you. If you genuinely enjoy making YouTube videos, then it won’t feel like work. Don’t start something just for the sake of it. Try to look for ways to monetize your passion, and something that appeals to a larger audience as well. Cut down on what doesn’t work and double down on what does. Find your own way, and your expertise in one topic. And aim to grow from there.

Which of these side incomes would you want to start? Do you have other ideas for a side income?

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