Second Income and it's different sources.

Source Of Second Income...

What is second Income and why is it important to have a second income even if you are working somewhere or running your own business.

So when someone talks about second income it is nothing but the extra income that they have or that they are planning for apart from the regular money that they make in their day to day life,

So what is the source for second income, OK let us divide it into two basic legal sources, available,

1. Income from Investments.
2. Income from Business, Services or content selling etc. 

But before we actually decide where to start from, ask yourself some questions,

*  Understand your point of interest, talent, knowledge, an advantage that you have over other people around you, Things that you know and that can be taught to other people or can be sold as a service on demand, e.g. Yoga training, Photography for different occasions, Cooking/baking etc, It could be anything and everything that can get you some extra bucks. which then can turn into a substantial amount.
*  Understanding if you can do something relating to what you have in you.
*  Know your limits and time constraints.
*  Plan how to spread the words for your startup latter.

You don't need to worry if you don't have that extra skills to sell, Most people don't have that and there is always something for everyone.

So lets go step by step and understand both the types of Income source, in short, Why short because there are no limits to the kind of business that we can do, Apart from some of the examples that we are going to share there would be many more remaining examples that cannot be covered in one article but will make sure this article covers the basic idea behind all of them,

Income from investments is nothing but making your money work for you.

Yes, there a term "Money attracts more money" How that depends on where we invest.

Investment is a very big market, you don't have to be pro to invest but its always good to have basic knowledge on the type of investment you choose before you actually start investing,

1). Income from Investments:

This, of course, would require money with you to start investing and making profits out of it, These are any way offered to you by many investment related companies and other sources. Investments could start as low as 200 to 500 and go up to your capability to pay.

• Bank Deposits or Fix deposits: These are a primitive type of investment that people use to generate a certain amount of income, The returns are normally very low, but secured and fixed.
• Returns from Investments in Insurance: Insurance is normally a long term investment planning, The returns normally start reflecting after, 5,10,15+ years as per the policy, As insurance is high revenue generating product for the insurance companies the advisor normally tend to hide the facts and show us just the rosy picture, So try and calculate the actual return rate of interest that you would earn in the long term and also the actual value of  money at that time when you start getting the returns.
• Stock or investment in the market: Before we start investing in the stocks or any related products, We really need to understand at least the basic on its working pattern and then decide which one of that do we need to invest in. There are options within them were they categorized themselves on the basis of risk we are ready to take with our investments, It is normally considered as more the risk more are the returns on investments, In simple words Investments in the direct equity market is more when the risk is higher, and the per cent of Investments in different types of bonds are more when the risk appetite is low. They are normally categorized under following types however investor can lower their risk with a good product mix of them.

• Stocks
• Different types of Bonds
• Mutual Funds/Systematic investment plans(SIP)
• Public Provident Funds(PPF) and National Pension System(NPS): PPF and NPS is one of the most popular investment option preferred by Indians,   
• Public Provident Funds(PPF): Is under Sovereign guarantee with 80C benefits and loan and partial withdrawal options available under it.
• National Pension System(NPS): NPS offers you the option to create a pension option after retirement, Investment in NPS mature at the age of 60, this also can be claimed under section 80C up to 1.5 lakhs with an additional Rs. 50000 under section 80CCD(1B). 
• Real Estate and investment in Gold: This is again a primitive kind of investment, keeping in mind good returns in long term, Though the returns can be good, as encashing them is not that easy, Especially for Real Estate.
• Investementent in Partnership business: Investments in Partnership business with someone is also an option for second income but required proper decision making and attention before investing and it's dependent on the other person performance and capability what kind of returns you will get.

Income from Businesses / services is when you trade with others in exchange of value, goods or services.

2. Income from Business, Services or content selling etc:  
Income from business/services is basically when we sell goods or services in exchange for value, goods or services. In this, we will not discuss all the regular business that we see in our day to day life as that requires full-time dedication and we are looking for something that we can build as a second income, and also the full-time business is something that will demand you to leave your office or current business, So the whole concept of building second income is not served.

For extra Income, we can look for some modern way of earning money,

1. Writing: If you are good at writing, try writing articles for Money in newspaper /Magazine, Kindle E-book is something where you can write and publish an ebook for millions of users and earn a royalty on sales across the world.
2. Digital/Online Earnings: Start your Youtube channel or start your Social media page on Facebook, Instagram or Snapchat etc, with the topic that can attract the interest of others.
3. Use Skills that you have: Start Tutor in free time, online Tutoring or start Yoga classes, If you go out for jogging in some parks or beaches you can try and collect some group of people to teach them Yoga/ Stretching exercise etc.
4. Start Blogging: Blogging in free time create online income just like youtube or social media pages.
5. Affiliate Marketing: This is again related to blogging, Youtube promotion or social media promotion this can add income to your kitty. 
6. Rent out: Rent out an extra room directly or on Airbnb.
7. Work from Home: Options like data entry or selling some products like cosmetic, Yoga training, Photography for different occasions, Cooking/baking etc are available under work from home option 
8. Multi-level Marketing (MLM): There are some genuine MLM company but be very careful before choosing whom to work with, understand if you would be comfortable working in that module as it is not for everyone.
9. Sell Photos: Online there are many websites available where they accept the pictures so if you have the passion for photography you can earn by submitting your work and if they find the pictures worth then you can get paid for it.
10. Web designing or App making for Mobile: This requires specific technical knowledge to be a web designer or an app maker but if you are from the same background this can get you a good amount of money.

Always remember any business will work only if you study about it completely and understand all its advantage disadvantage, limitations and threat's involved in it. Also one needs to be observing and understanding the opportunity available around us. A new idea is a bigger opportunity if executed properly.

We have just given you the different types of opportunity, in short, do study more on the topic you select before working on it,

Hope this article is useful for you, kindly let us know what do you think about it. also if any queries or question do write to us or comment below,

You can also share the link for this article with someone you are planning to start your business with or have a suggestion from.

Thank You.