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Supplemental Income Ideas

by MoneyedUp

While there is nothing inherently wrong with the phrase “spend less than you earn,” I actually prefer to turn the phrase around. “Earn more than you spend” seems more active to me. In my mind, the idea of earning more implies that you are truly taking charge of your income – and taking responsibility for actively improving your financial situation. As 2011 approaches, it is a great time to plan what you can do to increase your supplemental income. Here are some ideas for making more money in 2011:

Part-Time Job

This is probably the least desirable way of earning supplemental income. However, if you really need extra income, and you really need it now, a part-time job can be a stop-gap measure to help you get a few things accomplished, like paying off debt or making ends meet. However, you should make a goal to move to a point where your supplemental income comes from other sources, rather than a part-time job outside of your home.

Start a Home Business

If you have a good idea for a home business, you can get started on one in 2011. Write a plan for a home business, and see what you can do to get one off the ground in your spare time. In some cases, you might be able to make enough with your side business to quit your regular job and rely on your home business earnings. Some ideas for home businesses include:

  • Freelancing (writing, web development, web design, graphic arts, etc.)
  • Pet care services
  • Tutoring or teaching online classes
  • Creating craft items
  • Starting a web site (and earning from affiliate marketing and advertising)

Royalties

You can also create something that will result in royalties. Technology has made it possible to easily publish and sell your own books. Many people build up a revenue stream with the help of ebooks for sale. It is also possible to create music and sell it for profit as well. You can even work toward having someone else publish your material and earn royalties.

Dividend Investing

You can also create a revenue stream in 2011 by beginning to invest in dividend paying investments. These are investments that periodically pay out part of the profits earned to shareholders. You can set it up so that you receive regular dividend payments offering you a way to earn supplemental income. Once you get a regularly system of dividend investing set up, you can put your money to work for you. You can also set up something similar when you invest in bonds that pay interest to you on a regular basis. CD ladders and CDs that issue you regular interest payments can also be a way to help you earn a little extra.

Don’t Forget Income Diversity

One of the important reasons to development supplemental income is so that you have income diversity. This helps protect you in the event that one of your income sources is reduced or disappears. If you can, it will help to diversify into multiple streams of supplemental income so that you are not too dependent on any one or two sources of income.