Can you believe it? We are already three months into the new year, which means it is a good time to check in on your financial resolutions. Do you recall the commitments you made at the beginning of the year? If one of your goals was to secure a second source of income, you are not alone. Most Jamaicans, or even most people in general, would welcome a second source of income, especially if it does not demand the same time and energy of a day-to-day job.

With inflation eroding consumers’ spending power, and the “gig-culture” expanding, we are likely to see more Jamaicans finding opportunities to expand their sources of income. So, back to you, how have your plans to start a new venture or tap a second source of income progressed to date?

Well, here are two ideas to kick-start your journey to securing that additional source of income.

Real Estate

Real estate offers promising opportunities to generate additional income and build wealth over time. There are several options available to suit your unique financial circumstances. If you are in the position to do so, consider purchasing a separate rental income property. This allows you to diversify your income streams and earn passive income through monthly rental payments from tenants. Ensure you do your research to identify lucrative locations and property types that align with your investment goals. By making investments in properties that generate rental income, whether residential or commercial, you may benefit from long-term appreciation of the property and receive regular cash flow from the rental income.

As you contemplate this journey, if you still live at home with your parents, consider renting out your property for a period after purchasing it, especially if continuing to reside at home is an option for you. This strategy works particularly well if both you and your parents are content with the arrangement, and if you are not in a rush to live independently. By utilising the rental income to cover some or all of your first mortgage payments, you can simultaneously build equity in your property and benefit from its potential appreciation over time. This approach presents a unique opportunity to maximise your financial resources and bolster your income, potentially paving the way for future investments. With careful planning and patience, you could even leverage this strategy to establish cash flow and debt servicing, setting the stage for further property acquisitions down the line. By exploring alternatives that align with your current circumstances and resources, you can take proactive steps toward increasing your income and achieving your financial goals.

If you are already a homeowner, consider the opportunity to bolster your income by renting out a section of your home. By leveraging your existing asset, you can add a rental unit or rent out a spare room, offering potential tenants a comfortable living space while simultaneously generating additional income. While the idea of having a flatmate or roommate may evoke memories of university life, it is important to recognise that it can also serve as a practical means of capitalising on your property investment. With minimal investment required, renting out a portion of your home not only provides financial benefits but also fosters a sense of community and shared responsibility. Whether it is creating a separate rental unit or inviting someone to share your living space, exploring these options can prove to be a lucrative endeavour for homeowners looking to maximise their property’s potential.

Monetise Your Skills

Another effective strategy to generate your second income is to monetise your skills through side gigs. In today’s digital landscape, using your talent and expertise for financial gain has become more accessible than ever before. Online platforms, including
TikTok and Instagram, provide an avenue for you to showcase your skills while extending your reach to a broader audience. Whether you have an interest in fashion, writing, social media marketing, tutoring, graphic design, consulting or possess any other marketable skills, you have the ability to secure paid gigs or sell the product you create globally. Furthermore, side hustles such as driving for ride-sharing services or cosmetology offer flexibility, allowing you to earn extra income on your own terms. Monetising these skills can also serve as a stepping stone to eventually launching your own business. By formalising your offerings, establishing a brand identity, and implementing effective marketing strategies that leverage social media, you can transform your passion into a second source of income and potentially a profitable business. Turning your side hustle into a business enables you to unlock greater earning potential and may help you achieve your financial goals.

Ultimately, you are responsible for your financial future. Are you comfortable with your current financial standing or is there room to maximise your potential? This year can be the year that you reach or put yourself on a path to reach your financial goals. If any of these suggestions resonate with you, or if you would like to seek advice on next the steps, I would love to hear from you or feel free to contact your wealth advisor with your queries.