To achieve Financial Independence, one's income must exceed his/her expenses. One way to supplement your day-job income is to build a side income. The usual approach is to build a passive income comprising of dividends, coupons and interests earned from financial instruments.
Another way is to build a side hustle. This provides an additional income but it typically requires your time to accomplish. Your intrinsic motivation to grow your side hustle and income will also be a determining factor in sustaining your venture(s). For example, if you are able to monetise your passion or hobbies, you might be able to sustain the venture a lot longer than if you were just mindlessly looking around at different ventures.
I will be examining these side hustles that I am interested in while penning my thoughts in this blog.
- Create, develop and maintain my blog with creative content. Monetise my blog and expand to affiliate marketing where possible.
- Create a home-based food business.
Share with me your thoughts and comments on building a side income!
SG FI Dad, out.
Hi there,
ReplyDeleteYou do have an interesting way of interpreting Financial Independence (FI). Most people interpreted FI as having their PASSIVE income exceeding their expenses so that they are no longer dependent on their active income.
Attaining FI thus provides people the option of retiring, doing something that they are passionate about, or continuing on in their jobs if they so desire. Basically people who are FI, dont need to WORK for an income anymore. It is their money (investment) that are working for them and where the returns (cashflow) adequately covers their expenses.
All the best on your FI journey.
Thanks for the comment! I definitely agree that a substantial passive income would be ideal. However, I don’t foresee myself retiring early at the moment. In the meantime, I’ll just keep hustling and like you said, increase the incoming cash flow.
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