In today’s difficult economic conditions, it is important to have more than one source of income. Inflation, layoffs and tough economic conditions make it imperative that we have multiple sources of revenue.

Increase in income can happen in two ways –

• Reducing Spending leading to increased savings and 
• Having more than one source of income

Here are some alternate sources of income:

1.  You can develop a second source of income. Were you good in Mathematics in school? You can refresh your formulae and start tutoring students in your society/ area. If you are good, word will spread and in no time will you have many students. If you had a hobby like photography, painting or music, you could start teaching the same to people during the weekend for a fee. You will enjoy yourself and at the same time make good money

2.  Everybody has a high-end gadget today and wants to be on the social network. If you are tech savvy, you can teach people how to use their gadgets smartly and effectively beyond just using email and social networking. You can help professionals and small businesses create Facebook pages. You can charge a fee for your services.

3.  If you have money lying idle in the bank or get some windfall, use it in various ways. For example fast food chains and coffee shops are always looking to expand. You can invest your money in a commercial property and let it out to one of the chains. It is a good source of passive income. You can buy a house in a developing location or invest in a house close to IT and BPO companies. Employees in these companies come from different parts of the country and need a place to stay. You can rent it out to them.

4.  You can look at associating yourself with a network marketing or multi level marketing business like Amway, Tupperware etc. You will earn commission not only on the sales you make but also on the sales made by your referrals to the business. This business does not even need big investments and can be started quickly.

5.  Garage sale and selling items on online market places – If you have many clothes that you have hardly worn or books that you have read or interesting knick knacks to decorate the house that you no longer use, you can have a garage sale. Advertise it in your neighbourhood and on your Facebook page and keep it over a weekend. You will be surprised at the number of people coming over for a look and you might make some good money.

Here are some ways to reduce spending and increase savings –

1.  Instead of going to the mall over the weekend and splurging on clothes, eating out and movies, check for promotional schemes and online offers. There are many e-shopping websites where you can shop for books, electronics and clothes. Many of them offer competitive prices and interesting deals. Read this to know more.

2.  Prices of movie tickets are cheaper in the weekdays or a week or two after the movie releases. You can always catch a movie at that time instead of paying exorbitant rates charged during the weekend.

3.  You can become a member of a shopping centre or brand so that when you buy from there, you get reward points that can be redeemed.

4.  If you use credit cards, use the same one in all places so that you collect a lot of points and can redeem it for some items. Use credit cards with cash back option. You can save money.

5.  You can try out different ways of commute instead of using your own car or a taxi as transport costs are always rising. Look for people ready to carpool or share a taxi. Check out if using public transport is convenient for you.  Check if the newer modes of transport launched in your city is relevant to you.

It is a financial risk to depend on only one source of income. Additional sources of income not only add to your income but also increase your savings and wealth. With some hard work and smart thinking, you will be able to have an increased cash flow. Have any of you out there tried out an alternate source of income? Let us know your experience on the same.