Generating multiple sources of income is one of the most sought after things, especially in this generation. After all, more money equals more security, and with the rising inflation and uncertainties inflicted by the pandemic, people cannot afford to rely solely on their 9 to 5 jobs.
Luckily, generating a second income has become relatively easy with time. Given the easy access to various investment sources, it has become far convenient for people to invest and generate wealth without putting everything at risk. Here are 3 ways that you can use to build wealth and secure your future.
- Invest in Mutual funds
It doesn’t matter if you’re new to the financial world or an experienced investor, a mutual fund is always a safe and clever option to invest your money. With a low financial barrier, you can start as low as Rs 500 via a systematic investment plan (SIP) and still get high ROI.
Mutual funds are managed by professionals who expertise in monitoring the market and increasing your return on investment. Besides, mutual funds provide higher ROI and have an easy and quick liquidity process.
Of course, every investment comes with some degree of risk, but investing in mutual funds is the safest bet at such a high ROI.
02. Become an Insurance Agent
If you are looking to generate a secondary income without compromising your primary job, becoming an insurance agent could be one of the best options.
To put it simply, an insurance agent is usually associated with an insurance company and is responsible to sell different products and services as per the customer’s requirement and guide them throughout the process.
How to become an Insurance Agent?
The process of becoming an insurance agent requires minimum qualifications and is effortless.
- You can get registered online with any insurance company of your choice and fill in the required details.
- To become an insurance agent, you need to go through the required training, as mandated by the Insurance Regulatory and Development Authority of India (IRDAI). The training can be completed in 1-3 days, and in most cases, the study material is also provided by the insurance company that you have registered in.
- Once your training is completed, you must qualify a pre-licensing exam.
- The qualified candidates are then licensed by IRDAI to work as insurance agents.
Therefore, you can explore many branches of insurance, open doors to new opportunities while also making money on the side.
03. Share Trading
Another way to generate a source of income is through share trading. It should be noted that it is advisable to have an ample amount of knowledge and understanding of the share market before investing money due to its volatile nature.
There are 2 ways you can earn from trading share – Capital appreciation & Dividend earnings
Capital Appreciation – By investing in shares, you can expect some gain as the share prices increase. Despite the huge scope of profit, it should also be kept in mind that share prices are subject to constant change. And only with sound knowledge in this area, one can fairly predict these changes beforehand.
Dividend Earning – Some companies also like to distribute their profits among their shareholders.
Nevertheless, to earn maximum from the share market, you should always diversify your portfolio by investing in different sectors and industries. By doing so, you can minimise the risk of suffering heavy losses if a particular industry is affected.
Lastly, there are multiple ways to generate a secondary income, given that you constantly update your financial knowledge.
But what if you don’t hold enough financial knowledge?
Fortunately, there are professionals who expertise in studying markets, looking for investment opportunities, handling portfolios and making the right decision for you to generate extra wealth.
With the right financial partner by your side, you can surely make your money work for you.