5 Ways To Increase Your Annual Income
Financial freedom - my friend Shalini is obsessed with the word, and why not! In today's times when giant world economies crash (look at China!) and affect economies across the world, it's important to have some money in the bank and certainly not have any loans to pay. That guarantees financial security.
As a marketer in a media agency, Shalini draws a salary that matches the industry standards, but at the end of every month, she still doesn't get to save as much as she wants to. Shalini had moved to Delhi from Sonipat to complete her higher education five years ago, much to the chagrin of her orthodox parents who wanted her to marry and raise a family instead.
But Shalini, career-oriented and independent, had other plans. She studied management, borrowed an education loan to pay the fees and joined an ad agency. This is where the real life began.
Money in the Bank and Zero Loans - Possible?
“The cost of living in Delhi is very high compared to my hometown, and even though I get regular increments from my company, my expenses keep mounting,” Shalini laments. “Inflation, coupled with factors like a minimum of 10 percent hike in rent every year, credit card bills, and the EMIs for repayment of my education loan ensure that I have negligible savings. This is a big issue for me because I need to prove to my family that I can be independent and support them as well.”
Shalini's story is not unique; there are many of us who want to explore means to earn money beyond our regular sources of income. India's demographic dividend is peaking and so are ambitions. A number of Indians today are looking for ways to create wealth to achieve much in a short time - better standards of living, ability to afford luxuries and even withstand unforeseen exigencies.
Here are five ways that can help people like Shalini to increase their annual incomes:
1. Investing in gold
The overall upward surge in the gold prices makes it an easy way to increase your income. After studying market conditions, you can predict the rise in prices of gold to some extent, which is an opportunity to make profit. The price of gold dips sometimes, as has been the case in recent times, but invariably bounces back, making it a safe bet. Since gold is a rare precious metal with high value, investing in it is considered beneficial. After all, every country has a gold reserve that is the mark of their economic stability.
2. Investing in the stock market
If you are willing to take some risk and want a steady flow of income, you should probably invest in stocks with dividends. You will receive dividends on the stocks you invest in at specified dates. Investors often confuse dividends with interest received. Creditors receive interest on depositing money in banks, while shareholders, who buy a company's shares, receive dividends. You should invest in the stock of a company that provides a high yield. This is the payout on the invested amount, the rate of which is fixed by respective companies. By comparing the yield of different companies, you can calculate the income that you can earn by investing in them.
3. Investing in mutual funds
Investing in mutual funds indirectly means that you are investing in a lot of bonds and other funds, which will build a portfolio for you. One might end up making many investments over a period of time and this will add up to an exponential increase in the annual income rate, thanks to the growth in the particular portfolio.
4. Investing in real estate in India
India is one country where infrastructure and real estate matter a lot, given high returns from them. Investing in real estate seems to be a brilliant option for increasing one's income. The growth one will gain after investing in real estate cannot be compared to anything else, since property in India, once invested in, always appreciates or stays stable.
5. Investing in alternate careers
In the West, it is quite common for people to have two jobs to increase their income. In the Indian context, having two regular jobs can turn into a herculean pursuit, but many young professionals are investing their time and efforts in building alternate careers that are related to their regular job. For instance, many young advertisers take up positions with reputed agencies to garner experience, hone their skills, and save some capital in order to start their own advertising agency later on, metamorphosing into entrepreneurs from professionals. Choosing the right career path by taking into account aptitude, skills, and experience is crucial for alternate career plans to work.