How to successfully create a secondary income

The size of the gig economy has more than doubled since 2016, thanks largely to an influx of workers who are looking to create part-time and secondary streams of income.

In fact, some 48% of gig workers in the UK also have a full-time job, with people looking to optimise their earning potential at a time when the cost of living crisis and rampant inflation continues to rage throughout the UK.

But what exactly is a secondary income, and how can you successfully create one in the current climate?

What is a Secondary Income?

In simple terms, a secondary income is one that’s built and maintained alongside a primary, full-time job role.

Historically, people would pursue secondary incomes by taking on additional, part-time jobs at less social hours, after working at their primary role between nine and five.

However, remote and hybrid models (along with the explosion of the digital economy) have created more flexibility for workers in 2022, who can now seek out a wider range of convenient and even passive income streams to supplement their main way of generating money.

OK, So What Are The Best Ways to Create a Secondary Income?

The question that remains, of course, is what are the best ways of generating a secondary income in the current climate? The truth is that there remain many options at present, so the key is to identify which one best works for you. Here are some of your options.

• #1. Trading and Investing: We’ll start with what are generally passive streams of income, with a number of trading and investment vehicles available in the digital age. Arguably, forex trading offers the best liquidity and most impressive leverage, although the volatile nature of this space may be off putting to more risk-averse individuals. In this case, more secure, buy-and-hold assets like stocks offer considerably more value, along with incremental returns over time.
• #2. Selling Products Online or Dropshipping: Ever since the emergence of the ecommerce marketplace at the turn of the century, sites like Amazon and eBay have made it easier for individuals to sell their unwanted or bespoke items online. However, technological advances have also made it possible for such individuals to now engage in dropshipping, where they buy in-demand items at wholesale prices before selling these on at their retail values to realise a profit.
• #3. Launch a Business: We’ll end with one of the most common methods of generating a secondary income, which is to start a new business. This can be funded simply through bootstrapping and the money earned through a full-time job at first, while you can start small and scale your efforts organically over time. Over time, this may also evolve to become your primary source of income as the business grows successfully.