It’s not about hustling, it’s about making your money work harder.
With the rising cost of living, many may feel that their main source of income – which is their day jobs – is no longer keeping up. More people today are seeking additional income streams for flexibility, security, and financial peace of mind.
But how and where do you begin? The thought of putting in more hard work above your 9-6 job to build that side hustle is just making it harder and you give up even before you begin.
The good news is you can start small. We offer some small bite sized tips – from building additional streams outside of your main source, to diversifying your income.
Think of it like planting more than one tree, so even if one doesn't bear fruit, the others still might.
But first, understand the different income types
Generally, there are three types of income:
Active income
This is money you earn by exchanging time and effort, such as your full-time job, part-time, or freelancing. While the results are often immediate, it still requires your direct involvement.
Passive income
This is income earned with minimal daily involvement, such as through investments, rental properties, or selling digital products like e-books or online courses. It requires time and effort upfront but has long-term potential.
Portfolio income
This refers to profits from financial assets like shares, bonds, unit trusts, or dividends. While it requires investment knowledge, you can start small using trusted investment apps.
Ideally, building a strong financial foundation involves a mix of all three. Each type comes with its own pros and cons.
Start small and test first
You don’t need to build many income streams at once. Focus on one thing first, test it, and see how it goes. For instance, try opening a small online shop, sign up as a freelancer on platforms like Fiverr or Upwork, or start a blog or video content and look for monetisation opportunities.
Starting small allows you to test the market, discover what suits you, and adjust along the way, without feeling overwhelmed.
Or start with what you already have
You don’t have to be an expert to begin. In fact, starting with what you know makes the process easier. Ask yourself: What skills do I already have? What do people usually ask me for help with? What do I enjoy and could possibly share?
For example, if you love writing, try offering freelance content writing services. Good with numbers? Offer private math tutoring or help small businesses manage their finances. Love cooking? Start selling homemade food from your kitchen.
By leveraging your existing skills, you can get started faster and more confidently.
Use technology to provide online offerings
Technology today makes it easier than ever to get started. You can sell on virtual marketplaces like Lazada, Shopee, or TikTok Shop. You can teach online via Skillshare, Udemy, or even social media like TikTok and Instagram.
Even small wins, like your first sale, booking, or student, can be a great starting point and open doors to bigger opportunities.
Reinvest and diversify
Once you start earning extra income, don’t spend it all at once. Set aside a portion to grow your venture, whether that’s buying tools, promoting your work, or joining a course. Also, build an emergency fund and start passive investments.
If you’re interested in investing, try beginner-friendly investment apps that let you start with small amounts from the pool of extra income you made.
Reinvesting is essential to keeping your cash flow healthy and allowing your side income to grow sustainably. That way, you’re not just maintaining your income, you’re increasing its potential over time.
Diversification is just as important. If one stream slows down, others can still support your needs. Think of it as having multiple legs to stand on, if one wobbles, you can still stay standing.
Stop! Know when it’s not for you
Not every opportunity is worth chasing. Watch out for gigs that pay too little but demand too much time and energy, or projects that don’t align with your long-term goals. Avoid burnout from taking on too much at once.
Many people also jump on the hype on buying cryptocurrencies and non-fungible tokens (NFTs). These are risky investments that may not be your cup of tea (or soda). Instead of jumping all in, if you really want to try, test it with small amounts by only taking out 10% of your investments for these products.
It’s not about working hard, it’s about working smart
Multiple income streams aren’t just for entrepreneurs or investors. Anyone can start from something small and build gradually.
The goal isn’t to work non-stop, it’s to gain more freedom and security in life.
