Diversifying Your Income

November 7, 2008 | Filed under Money, Uni/Work

One key thing I probably should have added to my previous post about preparing and handling unemployment, is the importance of diversifying one’s income, instead of relying on a single income. In other words, instead of simply relying on your full-time (or, part-time) position as your only income, learn to use your spare time productively to achieve another way of earning money. That way, when/if you lose your job, you still have secondary means of earning money which while perhaps not as much as you’re used to, will still tide you over until you find a more permanent position.

Using myself as an example, I earnt money in three different ways in the last year, while still being a full-time university student pulling in Distinctions and High Distinctions:

  1. My part-time retail job: My main source of income ($15,000AUD a year).
  2. My babysitting jobs: Not as much as my main source of income, but more than enough to live on if I were to lose my job ($10,000AUD a year).
  3. Interest from my bank accounts: What I like to think of as ‘free’ money as I don’t have to actively do anything to earn it ($1000AUD a year).

Now that I’m uncertain about how much longer I can continue to hold my retail position with the economy the way it is, I’m further diversifying my income by selling on eBay. If early signs are any indication, this venture could possibly net me a further $4000AUD-$5000AUD a year, while requiring me to spend less than three hours a week in activities relating to it.

I realise that most people don’t have the luxury of having a flexible timetable as I (sort of) do. They may be locked into a regular 9-to-5 office job with only weekends to commit to any other venture. That’s fine. Weekends are more than enough to ensure you have a backup plan.

I’m going to use Vixx of Furious Angel as an example. She holds down a full-time job. She also has a husband and child to spend time with. Yet she’s able to earn additional freelancing income by creating site designs in her spare time, as well as drafting out her first novel. Going by the prices quoted at Geek Goddess (her portfolio), she’s earning at least 100 pounds (a couple of hundred American) for every design she does. It’s not exactly small change.

I think the important thing about any part-time venture you consider, is that it has to be a passion. For most people, their full-time work is simply something to earn money through, not necessarily something that brings them great enjoyment. Change that, and make your passion financially viable as you’ll grow to hate spending your spare time on it if you don’t love it. I’m earning money by shopping and selling on eBay. Vixx is making money by designing site layouts. If you love animals, try dogwalking (I see dogwalkers in fancy neighborhoods, with as many as ten dogs on leashes at the one time!). If you love children, try babysitting. If you love clothes and shopping, take up a weekend-only retail position. If you love designing, create an online portfolio and solicit local businesses for their patronage. If you’re anal about grammar and punctuation, try freelance copywriting. If you blog lots of reviews of books or movies, sign up for Amazon affiliate links, and earn a few Amazon dollars (I have to admit, this is something I’m contemplating).

There’s a million and one things you can do as a freelancer in your spare time. Guru is a good place to start, but I’m sure there’s a million and one country-specific websites like it that can help you earn a few extra dollars!

5 Responses to Diversifying Your Income

  1. This is fabulous. I really do need to do something else and I do have quite a lot of time on my hands at the moment. Guru is a great site. Thank you so much for sharing it!

    Caity on November 7, 2008 #

  2. I agree, but I simply don’t have enough time in the day to even get all my homework done right now. After this semester is over and I no longer have 17 hours of school plus 19 hours of work plus travel time, maybe I’ll start an Etsy shop to sell some of my crocheted goods.

    Rebee on November 8, 2008 #

  3. I was going to be a notetaker, but they didn’t need any of the classes I have. I’m still going to try next semester though.

    Oh, and you can take psych surveys and studies. Those things sometimes pay.

    Arielle on November 8, 2008 #

  4. Great advice! :D I should probably be looking around for some other work…

    I also should open up my savings account soon.

    Noellium on November 8, 2008 #

  5. Pingback: Jingwen » Blog Archive » March Ebay Earnings

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