In the last few weeks, the majority of Kenyans have felt a fire burning through their pockets. The cost of living - especially in major towns - has skyrocketed. The cost of the essential products has doubled, and life has become much more expensive.
It is becoming harder and harder to survive every day, and it seems the struggle is real for both low and high income households.
In Kenya, the number of people earning Ksh100,000 and above stands at 79,909, according to the Kenya National Bureau of Statistics (KNBS). This number accounts for just 2.9% of the 2.7 million formal workers according to the Kenya Revenue Authority (KRA) database.
In the current state of the economy, reliance on a single income stream is no longer as feasible. This has necessitated the need for every future-conscious person to create additional income streams that act as cushions to disruptions in the main income source.
Here are some ideas to help you successfully diversify your income and survive the tough times. It is quite possible that a secondary income stream can grow to surpass, for instance, employment income.
In addition to your day job, try offering a service on the side. The service you sell can be in tandem with your general skill set, your hobbies, or just a skill you learn along the way.
For example, If you are an accountant, you can easily offer financial consultancy services on the side. If you enjoy photography, you can start a photography gig in your free time or even take photos of places, people and events and sell them on the internet.
Here are some additional ideas to think about;
If the service industry is not your cup of tea, try selling a product. It may take a bit of time to set up and get the money flowing but once set up, there is potential for this to become a passive income source you will enjoy for a long time.
Here are some ideas:
By offering a service or selling something, you can create a side business that you get to control.
In the world we live in today, many people are looking for online courses and workshops to teach them various skills. If you possess a specific skill or expertise that you think people would be willing to pay to learn, then why not sell it?
Depending on your expertise, you can create a full-fledged school where your clients can learn and even earn certificates of completion. The courses and webinars can be online or in-person, or even a mix of the two.
The only disadvantage of selling online courses and other educational products is it can take time to build a reputation and a reliable client base. But once you have built a strong foundation, it can turn into a solid passive income source.
Social media has proven to be a powerful force in the past few years. In this era, a large social media following can be equated to a massive wealth source and hence a great way to diversify your income.
There are tons of ways to monetise your social media presence — the higher the number of followers, the higher the income potential. You can monetise your social media through:
Real estate is another great way to generate extra income if you have the capital. Real estate is a big industry and a great way to earn big bucks in these hard times. But it may also require a significant initial investment amount and a lot of patience.
While real estate investing isn’t for everyone, it can be very lucrative if done right. Many people have built great wealth investing in real estate.
There are various ways to make money in the real estate industry.
Another great way to make some side income is to rent a part of your space or even some of your belongings.
You can turn an extra room in your house into an AirBnB. All you need is to create an account on AirBnB and start receiving guests who like to enjoy a home-like atmosphere. Alternatively, you can rent it out monthly or quarterly to a permanent tenant.
You can also lease out other belongings like your car, motorbike, deep freezer, etc. You just need to find items in your house that are not in use, and they could help contribute to your general income.
The Nairobi Securities Exchange which has a market capitalisation of over Ksh2.4 trillion is one of the biggest investment vehicles for people looking to invest their hard-earned money and get high returns on capital.
To make money in the stock market, you can choose to invest long-term or short-term. Short-term investors make money on market swings; up and down movements of the stock market. You will need to arm yourself with the right information and tools to penetrate the market to make money doing this.
You can also trade international stocks.
Next up, create your product and sell it. For example, I know someone who custom makes decor pieces and sells them on Facebook and Instagram. You can also build an online eCommerce store on a site like Etsy or Shopify or a simple website to host your products.
If a physical product is not your strong area, you can try your hand at digital products. For example, you can create a mobile application to solve a real problem and list it on Appstore or Apple store.
In this case, you’re using intellectual property to diversify your income. This space has great potential and is likely to see massive growth in the coming years because of what is happening around the world. Education is most likely going to shift more to online.
Another way to generate extra income that requires minimal effort is to save in a high-return savings account. It is especially a great place to keep your emergency fund. The right high-saving account is risk-free and can still earn you money every month.
This is especially a great option if you have a busy day job and want to earn some more on your savings passively.
Also read: The 7 Stages of Financial Freedom
In the current times, nothing is predictable. Creating multiple income streams is one of the best ways to cushion against unpredictability, reduce financial risk, and add some more flavor to your life.
Above are some ideas to inspire you and get you started. Go on and take charge of your financial well-being and your life.