Are you happy with the amount of money that you are making from your primary job? Is it enough to cover all the bills you have to pay each week, month, and year? Would you prefer to have access to greater financial resources without having to switch careers or get promoted to a higher position with a better salary but more responsibilities?
Figuring out how to supplement your primary income is a common strategy for those who want to plan for the future. Often, a single income is not enough for people to maintain the lifestyle they desire. Even if they could get a better job, it might end up being more stressful or time-consuming, reducing the amount of time they could enjoy an elevated lifestyle.
The right investment strategies can help you supplement your primary income to achieve your financial dreams. Here are four ideas that might work for you.
Buy a Business in Calgary, Alberta
If becoming a business owner has been your dream, then this could be the perfect way to supplement your main income, but it may require a bit of work. Operating a business is no easy task, so you must be willing to do the work or pay someone else who can. You browse for a Calgary restaurant for sale from owners looking to retire. Auto repair shops are another profitable option. If you find a print-on-demand business for sale in a big city, then you could generate a ton of extra income because you do not have to buy inventory upfront in this niche. If you have some savings and you want to turn it into more money, then buying a small business could be the right strategy.
Choose a Better Retirement Plan
Many careers come with retirement plans included in a benefits package. For example, you may have a 401k or Roth IRA through your job. These accounts can be incredibly helpful when you are no longer working, creating a steady income for retirement. The problem is that some retirement plans are better than others. The plan you have through your workplace may not be very effective, and contributing more of your salary to it will limit your spending potential in the future. When searching for an additional retirement account, make sure you take into account compound interest. The more you contribute to it, the more you will have in the future so accounts with better interest rates will yield more money.
Put Money into a CD
A certificate of deposit, or a CD, is a type of savings account that is short-term. Instead of leaving your money in savings, generating very little money from interest, you could put it into a CD for a short period to obtain guaranteed returns. Terms could last anywhere from three months to five years. Obviously, the longer the term you select for a CD, the more money can be made. The key to receiving higher returns than a typical savings account is not withdrawing any money during the contract. If you manage to avoid doing so, those returns are yours.
Invest in an REIT
Real estate investment trusts are similar to mutual funds but only within a specific sector. The trust is a giant pool of money from a large number of investors. The brokers at the trust then find various real estate properties to invest in, focusing on diversifying the portfolio of the trust. Then, when returns are available, all investors receive payouts from the trust. This can be completely passive income that just requires some investment of extra cash that you have. It is relatively low-risk due to the portfolio diversity, and the only research you must do happens before choosing a REIT to put your money into.
Evaluate Your Finances and Lifestyle Goals Before Choosing an Investment Strategy
These four strategies for supplementing your primary income all operate differently. Some require a lot of work but can yield great profits, while others are low-risk, low-maintenance, and low-reward. Some of them are no-brainers, like putting money you know you won't need into a CD, while others should be researched very meticulously, like buying a business. Evaluate your current finances, determine what your goals are for the future, and analyze which opportunities could fit within your current lifestyle.