How to Supplement Your Lifestyle with a Secondary Income Stream

How to Supplement Your Lifestyle with a Secondary Income Stream

The gig economy represents big business in the digital age, with workers within this space contributing a staggering £20 billion to the UK economy.

Perhaps more interestingly, one-in-six adults in the UK currently work a gig job at least once a week, while nearly 48% of the workforce do so while holding down full-time work.

This trend is becoming increasingly popular in the UK, as inflation and interest rates remain disproportionately high and seek out additional income streams to help improve their financial circumstances.

But what are the best options when looking to supplement your income while supporting and maintaining a desired lifestyle? Here are some ideas to keep in mind:


#1. Trade Forex and Similar Financial Market Assets

Let’s start with the basics; as the digital age has driven the sustained evolution of the global financial market and made this accessible to an entire generation of aspiring and part-time traders.

This process has seen corporeal brokers replaced with virtual alternatives and trading platforms, which immediately connects all traders to the financial marketplace and enables them to build diverse, adaptable and profitable portfolios.

At this point, however, it’s important to understand the key characteristics of investing vs trading. Make no mistake; traditional buy-and-hold investment strategies (which are synonymous with stocks and bonds) are less valuable in the current economic climate, where volatility reigns supreme and assets continually see their values fluctuate.

Conversely, derivatives such as forex can be traded speculatively and without requiring you to assume ownership of the underlying asset. This means that you can hedge against specific assets and profit even as they depreciate in value, affording you far greater flexibility while also introducing concepts such as margin and leverage.

You can subsequently create a forex trading schedule that suits your lifestyle and existing career, with the key being to start small and scale your portfolio over time.

Additionally, you should look to cultivate a deterministic and disciplined mindset that’s based on a broad base of knowledge, as this creates confidence and allows you to navigate the FX market’s numerous risks and pitfalls.


#2. Dropshipping

Ever since the turn of the century and the advent of the digital age, people have also been able to engage in online marketplaces such as Amazon and Ebay and sell both bespoke and second-hand goods to customers.

The market has evolved, however, to the point where individuals can now engage in the practice of dropshipping and elevate their online marketplace activity to create a more entrepreneurial model of operation.

Dropshipping has certainly become more popular in the wake of Covid-19, as demand in the ecommerce market has boomed and previous trends have been accelerated.

With dropshipping, you’ll buy in-demand goods at wholesale prices, before selling and shipping these to customers at retail value. You’ll then bank the difference between these two prices as profit, relying on volume to increase your profits over time.

This is a small scale operation that requires time and organisational skills rather than any kind of financial investment.

It can also be done flexibly and alongside a full-time career, while the level of risk incurred is virtually nil. So, it’s arguably a little more suitable for those of you with a risk-averse outlook or experience in the field of online selling.


#3. Market Your Skill as a Freelancer

Last up is a similarly low risk endeavour, and one that simply requires you to market your existing skills in the freelance marketplace.

As of 2022, the aforementioned gig economy was home to 1.9 million freelancers across a broad range of disciplines, with creative fields such as design and copywriting particularly well represented.

Sites like Freelancer and Upwork now make it easier than ever for freelancers to network, find work and showcase their portfolios to potential clients too, so there has arguably never been a better time to market your skills outside of a 9-5 job and boost your earning potential flexibly.

If you’ve already established yourself in your field through a full-time job, you can leverage this to boost your appeal in the eyes of clients and potentially add a premium to your hourly rate. If not, pricing and marketing strategies will be key, as you’ll need to build a viable base of clients and build a solid reputation in the industry.

Because of the time demands here, this is recommended if you have some actionable spare time or are single. You’ll also need focus, drive and significant organisational skills, but the good news is that this endeavour is also risk-free and doesn’t require you to commit financial capital or resources up front.