source of income

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Rakesh

Rakesh (Querist)
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23 October 2009 Dear frnds '
what is the good basis for characterising " source of income "?

Ram Avtar Singh

Ram Avtar Singh (Expert)
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23 October 2009 Principally there are four basic ways to earn money
Employment - When an employee works for an employer and gets wages/salary in return.
Self-employment - This means working for yourself that can earn you money.
Business - This implies having a set establishment or system that can churn out money for an individual.
Investment - This involves making money out of money or in other words making money out of the accumulate capital.
Ideal situation for making money is to make you at apposition between the above stated ways. The most comfortable making money will be out of business and Investments. The basic aim lies at relieving yourself from being totally dependent on one source of income. An individual generally likes to adhere to multiple sources of income so as to give away the burden of risking his earnings only through a particular source.

There could be multiple sources of income but an individual should always opt for a second source in which he is interested or that stream may be is his hobby.

Some examples of multiple sources of income are - Investment in shares, Investment in Mutual funds, Property handling, Freelancing etc.

Whatever other source of income may be the key to success lies in risk taking and doing a research before you opt for a particular source of income. Below discussed are some key factors related to Multiple sources of Income:-

Part Time Jobs: In case an individual is employed he may look for two part time jobs out of one which should ensure his interest so that he can be motivated about the same.
It is plausibly a feasible solution that multiple income streams go together. This possible via using the same place for more then one income generating source.
Creativity: Creativity is the punch line for individuals interested in opting for multiple sources of income. Be creative in whatever you do so that you enjoy your job at its best. Moreover your creativity should be pointed towards finding out other ways to earn money.
Try Something New: Donâ€™t be afraid to try something new as this is an alternative way of your earning. The more the risk the bigger the gains.
Time factor and complexity of job: These are the two things that need to be kept in your mind while going for multiple income sources. Time factor and complexity level must be manageable aspects.
Calculate Profit Potential: Identifying the profit potential is also necessary aspect while going for a multiple source of income. The effort you are putting in the job must reap you enough benefits that you remain motivated to carry out the job further.
Natural talent, Interest and Hobbies: Most importantly look for your natural talent, interest and hobbies. You may identify your talent by own or may take help of your friends to identify what you are actually good at.
Flexibility: Flexibility is also one of the requirements when you opt for multiple source of income. Be open to change and new possibilities.
Identifying and practicing multiple sources of income has always been a key to make wealth. Itâ€™s a proven fact that the persons who are really wealthy their income has been generated from multiple sources even though in the beginning it might started from a single source. The field may be varied such as bonds and stocks, networking, marketing, entrepreneurial venture or may be something else individuals are always on a lookout for new chances and opportunities.