Many people work hard but need to earn more money to meet their needs. Instead, they often rely on additional sources of income to supplement their earnings.
Some individuals consider quitting their jobs to start a business. However, leaving your job to earn extra money isn’t necessary.
You can earn more than your salary by following specific methods while still employed. Let’s explore some options.
Lending: If trusted friends or family members ask for a loan, consider lending them money at a lower interest rate than what banks charge. Banks typically charge 13-15% interest on personal loans, while fixed deposits (FDs) offer only 7-8% returns.
By lending at an interest rate of 10-11%, you and your loved ones benefit—your relatives pay less interest than at a bank, and you earn more than the returns from an FD. However, assessing the borrower’s ability to repay the loan is essential before deciding.
Angel Investing: Not everyone can run a business, but you can invest in startups as an angel investor for extra income. Support innovative firms and ideas you believe will succeed.
If the startup flourishes, your investment can grow significantly, sometimes yielding profits of 100 to 200 times your original investment. Angel investing allows you to profit without involvement in the business’s day-to-day operations.
Investing in Music or Movie Royalties: Another unique way to earn extra income is by investing in music or movie royalties. Many artists sell a portion of their future royalties to investors.
By investing in these royalties, you can earn money every time music or movie revenue is generated without creating any music or films yourself. Look for opportunities to invest in existing works and enjoy income from future royalties.
E-Books: Creating and selling e-books online is an excellent option if you enjoy writing. Once you complete your e-book, you can earn money for years with minimal additional effort.
Sharing your knowledge through e-books is a beautiful way to generate extra income and reach a global audience.
Stock Market or Mutual Funds: The stock market can be a great way to earn extra income. Investing in worthwhile stocks can yield good profits, but the market carries risks, so it’s vital to consider your risk tolerance when investing.
If you prefer a lower-risk option, you might choose mutual funds. Generally, you can expect an average return of 12-13% from both the stock market and mutual funds. In a buoyant market, the profits can be even higher.