Here are 6 Tips for Diversifying your Income Stream
It is a known fact that a diversified portfolio of income-producing assets will typically outpace inflation over the long term. However, it can be quite difficult to maximize returns by minimizing risk while also staying within your comfort zone when investing in individual stocks, bonds, etc. So how does one go about adding another layer of income production without taking on too much risk? The good news is that you probably already have some streams of passive income that don´t require lots of time and extra liabilities to generate any notable returns. Be sure to make use of these resources before stepping outside your comfort zone and diving face-first into something new!
1.) Rent Out a Room on Airbnb – This is a no-brainer for anyone who travels frequently or doesn´t mind having roommates. Not only can you offset the cost of your next vacation by renting out your room, but you also get to meet new people and make friends along the way!
2.) Rent Out Your Car – If you are like most Americans, you probably spend at least $200 per month on car payments, gas, maintenance, insurance premiums, and parking. Why not let someone else pay for that while you drive their cars? I know what you´re thinking: “But Dave! Those other cars just aren´t as good as my Maxima GLE!” Well then start making better financial decisions so that one day you too can buy luxury vehicles!
3.) Join a House Sitting Service – Imagine if you could make money by moving to a new city and watching someone else´s pets. That is exactly what you can do with companies like TrustedHousesitters and Mind My House. These websites allow people who own vacation homes or live in places that don´t allow pets to find trustworthy individuals who will take care of their four-legged friends, water this amazing Plant of the Week, and keep an eye on any valuable items they may have lying around.
4.) Host Your Website – Web hosting has come a long way since its early days as a novelty for computer geeks. Nowadays there are many companies such as Bluehost and GoDaddy where you can purchase space on the internet for less than $10 per month. Most people are amazed when I tell them that you can purchase a domain name for less than $10 per year. If you have the technical know-how, why not start your own website? That way if someone else wants to advertise on it or send their friends over to visit, they won´t have the option of telling them “I don’t own this website!”
5.) Sell Something – Whether it be your body, your art, or something you just picked up at Goodwill, there is probably someone online who would love to buy whatever it is that you are selling.
6.) Sell Your Knowledge – The internet has created an explosion in opportunities for people with professional expertise to teach courses online via platforms like LinkedIn Learning. People will always need to keep their skills up to date and you can be the one who helps them upgrade!
