Note: to read his first entry on stock investing click here.
Pursuing a side income entails a lot of time and effort. Of course capital is also needed, but if you have a regular job then that should no longer be an issue. Anyway, I know of one which only entails time. That is by investing. But more on that later.
As you may have known already, side income can be obtained ultimately in three ways
- Working extra
- Putting up a business
By working extra, you can work overtime, put up an online store, get into real estate and connect buyers to sellers, provide service to others, etc. What is common among these examples is that the extra income comes only if you provide extra time and extra effort.
By putting up a business, you painstakingly setup, fine-tune, and run a system of business processes. After some time, even if you do not provide extra time and effort, the side income still comes. That is because after all the initial hard work you have done to set the business up, it is now self-sustaining.
By investing, you only need a capital. You only need to set aside a portion of your income and put that portion in an investment vehicle.
Now here is the kicker: which one among the three above-mentioned items can you setup right away with the least amount of effort? If today is a Friday, which one can have you all set by Monday?
Say you decide to put up an online store. You will have to setup the website, procure the items that you will sell, and market your product. That’s it and you are done. But afterwards, you will still have to spend extra time and exert extra effort in dealing with buyer queries, settlement of payments, and logistics solutions to deliver your product. There is a constant additional time and effort involved.
Setting up a self-sustaining business is similar to the example above, but on a much grander scale. It will entail a lot of toil initially, but if you stick to it and put your focus on it, the harvest will be abundant. It will run and sell itself on its own even with only minimal supervision. I think only a select few people who are gifted with business savvy or are gifted with good selling skills can pull this through.
Working extra or putting up a business requires a lot of selling while investing requires no selling but a lot of time. According to one newsletter from my subscription to Bo Sanchez' Truly Rich Club (link here), investing will make you richer later (like in ten years), but selling will make you richer sooner than later (five years).
In my opinion, you can get started now with investing. Like, RIGHT ABOUT NOW. It is the basic-level in securing your future. Can you set-up a business as fast as that? I hope you won't, as you need to carefully plan it.
Running a business is intermediate level. So I think it is important to first have the basics in place. Getting an insurance is a form of investment. You can also invest in the stock market (How? Click here). With that already set-up, that is when you can think of other ways how to earn by working on that business idea you may have been cultivating in your mind all this time.