Damage to the hospitality industry
The coronavirus pandemic has smashed the hospitality industry worldwide, with some areas of the industry having layoffs at 77% of businesses (1). With businesses facing hard times so many workers are facing the hardship of unemployment or reduced hours, meaning that now is a better time than ever to look into diversifying your income!
There are nearly unlimited ways of diversifying your income streams in 2021, being the age of the internet, however the plethora of options can make it extremely difficult to select a means that fits with you. We’ve boiled down to the best 3 ways to diversify your income, to save you the hard work - that’ll come later when building the income stream!
Our Top 3 ways to diversify income Streams
3. Gig Work / Second Job
Whilst this option isn’t as glorious or potentially lucrative as the other two income streams listed here, it is a reliable and stable way of diversifying your income. Some popular ways of developing this income stream are: Uber driving, a night job, or contracting your professional skills through platforms such as Fiverr or UpWork.
Pros:
- Typically a fixed income
- Flexible to your availability
- Easily Accessible
Cons:
- Typically a fixed income - this can be positive, but also means your income is capped at an hourly rate
- Time Consuming
2. Build Your Own Business
This option is best suited to those with plenty of time, capital & a monetizable skill / knowledge. Building a business is a great way to diversify your income, and most successful business owners look to have a scalable business model, meaning that your potential income is limitless. Some small businesses ideas with high success rates include cleaning, dry cleaners, & personal training.
Pros:
- Uncapped earning potential
- Flexible to your availabilities
- Scalable
Cons:
- Time Intensive
- Capital Intensive
1. Trading Forex
Trading forex (foreign exchange) is typically thought of with negative connotations - that it is for experts, or that it is gambling, however these assumptions are incorrect. Trading forex with proper risk management & a solid strategy can be extremely profitable in the long run, however due to the unpredictable nature of financial markets it can be a more volatile income stream, being extremely lucrative in good market conditions, but losing weeks or even months can be expected in any trading strategy, making this income stream less stable. This is why a proper risk management strategy is integral to long term success in forex trading.
Another perk to trading forex is the existence of forex signal providers (like us!) that share their experience & knowledge of the markets with beginners, so that beginner traders can copy their trades to profit. Other perks of forex trading with signals is that it hardly consumes any time, and it is also accessible, with some brokers having a minimum deposit amount of $1.
Pros:
- Uncapped Earning Potential
- Scalable
- Accessible
- Not Time Intensive
- Signal Groups share their experience & trades
Cons:
- Unstable Source of Income
- Exposure to financial risk
Recap
We hope you’ve learned something new from our guide on diversifying income streams! Typically income streams with higher risk can result in higher potential earnings but can be unreliable. Whilst a side gig such as uber driving is great for some people, others would prefer to have limitless earning potential & are happy to expose themself to managed risk in return for the possibility of higher incomes.
If you’d like to learn more about forex trading check out our blogs for more beginner friendly information! ToniSignals also provides forex signals for free, which is a great way for beginners to get started.
(1) - AHLA, 2020, Covid-19's impact on the hotel industry.