Supplementing your income can increase your take home pay, help pay bills, and put more money into your pocket.
For most people the lockdown has shown that they rely to heavily on one form of income. For majority of people their income comes from one source, their job. Almost every wealthy person will tell you that in order to achieve financial freedom you need to have multiple streams of income.
Multiple streams of income can come from many sources. The most popular being passive income. I have an extensive article on how to create and grow passive income. Click here to read that.
Beyond passive income there are plenty of ways to turn extra time, or free time, into cash. My most favorite and one I do was get a state issued Real estate license. I will explain this in detail further down, it does not require you explicitly work as an agent.
The reason these supplemental incomes work is because there are many unconventional ways to earn money that most overlook.
Easiest way to turn extra time into cash
One of the fastest and easiest ways to turn some of that extra time into cash is by working as a private contractor. This allows you the freedom to “be your own boss”. You are provided work through a company but you are not explicitly an employee.
For example Ride sharing apps can help add a nice chunk of change into your weekly earnings. “But I don’t want to pick up strangers” you might be saying. Well lucky for you there are plenty of ways to earn money with just a car and some extra time.
Doordash being my favorite.
Doordash allows you to earn money by delivering food, which since the lockdown has been in super high demand. It varies by area and I would suggest you follow this advice. The first few days will be tough as you are unsure of how much you should be earning.
Well I have the answer to earn $25 dollars OR MORE an hour through Doordash alone. Doordash doesn’t penalize drivers for declining orders. I recommend looking at three things. Pay compared to milage and time. Each order will tell you the estimated time of delivery.
For example you get a delivery notification that you can earn $5 dollars by picking up chipotle and driving it 4 miles. The estimated time of delivery says 30 minutes and you think it’s a good deal. Well you now limit your hourly income to around $5-12. If you are comfortable earning $12 an hour then thats ok. But I am here to say that most likely that order has no tip.
Decline and wait for something better. I repeatedly see low ball deliveries and decline waiting for something better. By comparing the time to deliver by the fair you can literally create your own hourly rate. Many orders will come through at $8 – 12 dollars with very short delivery times. If you live in a busy area, or even close to one you can see even more with stacked orders.
A friend of mine that I helped get started driving on his free time has found that his average hourly rate over the month of August was $36 an hour! Much better than mine but he lives in a busier area for lunch time, while I find dinner time to be my bread and butter.
The reason I prefer Doordash over all other ride sharing apps is because they do not penalize drivers for declining work. Compared to Uber lets say which will either suspend or even lock your account for repeat declines.
If you or someone you know is interested in supplementing their income with Doordash I have a code that will give them a very hefty bonus for completing a certain amount of orders in their first month. This bonus will allow you to earn around $300 extra dollars for completing a certain amount of deliveries. Remember that this is based on your location and my vary based on demand.
Turning Capital into Supplemental income
Capital, or money, can be used to earn more income. This income can come from many different sources, such as investments, real estate, and owning businesses. If you have a good amount of capital sitting in a savings account you are technically losing money.
A good measure of return is ask the question, ” Can my money earn more elsewhere?” For example purchasing investment, or rental properties can bring you monthly cashflow. The reason I like to call these supplemental instead of passive is because without management you will be on the ground operating and maintaining your properties.
I would suggest linking up with a licensed real estate agent, one who knows about investment properties and can show you newly listed properties before the masses find out about them.
One of the easiest ways to start earning a more passive supplemental income, is through dividend stocks. This method will require a good amount of capital to actually earn something and they payout either monthly or quarterly.
Most shares of dividend stock will pay around 0.05 – 1$ for each share. These amounts can be found online through research. But over time if you build your portfolio and reinvest the dividend you can see results in a few short years.
If you or someone you know is interested in getting started building their portfolio I have a link that will provide them with a free share of stock! Just click here!
Lastly you can take some of your capital and try to purchase an already established business. Please be aware this is the most risky, I would even say more risky than real estate. With real estate you own property that holds value, owning a business is only valuable compared to revenue. You should look for three things.
- An absentee owner – If the owner is working at the business they are most likely doing so to save money and make the business profitable. You don’t want to buy a job, you want to purchase something you can sit back and receive checks.
- Year over Year Revenue increases – If the money isn’t going up each year why would you want it? You want something that is not only successful right now but shows strong signs of being even more successful in the future.
- Look at profit not total revenue – If you see a large number for revenue you need to also look at profit. Businesses are expense heavy, they may show 1 million in revue but a fraction in profit. You want something that earns a lot of profit, either online businesses that are already established with low overhead, or something along those lines.
When it comes to buying a business you cannot be shy, you need to ask the hard questions. I would even suggest having your own accountant audit the business and weigh in with their professional opinion.
Remember that all these methods require you to report and pay taxes on them as the income is not withheld. Failure to do so will bring the IRS to your door.