Explore different types of incomes to build your financial health
In this day and age, many of us dream of achieving financial stability and independence. To some, this goal might be too far to reach, but Ouch! believes that it is realistic and can be achieved through careful financial planning and discipline. One way to achieve this is by strengthening your financial standings by generating extra income through passive income or a side hustle. In this edition, Ouch! has explored different ways of generating extra income for you to consider as you take one step closer to financial independence.
Exploring Passive Income Options
Passive income can be lucrative and rewarding when done effectively and strategically. Essentially, this approach puts your money to work even when you are not actively managing it. Here are some passive income options for you to consider:
- Invest in Steady Investment
Explore low and medium-risk investment options to steadily build up your financial strength. Government-backed funds such as Amanah Saham Bumiputera (ASB) and Amanah Saham Malaysia (ASM) serve as reliable options for those beginning their investing journey, as these funds generate steady returns on their investments. For those who are willing to take on a bit more risk, there are several digital investing platforms available in the market. Some of which even offer Shariah-compliant options. However, remember to educate yourself on the market and take calculated risks.
- Activate Your Assets
If you have an extra room, a car, or even equipment like cameras or tools, consider renting them out. You can start by offering rental services to people in your circle before branching off to explore relevant platforms to help you monetise your assets further. This approach not only provides extra earnings but also encourages efficient use of resources.
- Invest in Valuable Items
It could be gold, luxury goods such as Rolex or Birkin bags, or collectible items such as artwork or even rare books. These assets can be a unique way to diversify your portfolio and retain or increase value over time, providing a hedge against inflation and economic uncertainties. However, it is important to tread carefully. Do thorough research, and take strategic risks, as there is no guarantee that the value will go up and remain high. Do careful research and take calculated risks in your investment.
Setting Up A Side Hustle
Side income, on the other hand, would need a more proactive approach to earn your returns. The more effort you put into it, the more income you generate. In other words, you reap what you sow. Here are some side income options you can consider:
- Monetise Your Hobby
Are you passionate about cooking? Have an eye for photography? Or love exploring your artistic side? No matter your hobby, you can consider turning it into an income stream. You could sell baked goods, teach online classes, or even start a YouTube channel to share your skills. Monetising something you love makes earning extra income enjoyable and fulfilling. And with less pressure, too, as it is not your main income stream!
- Explore Affiliate Marketing
If you have a strong online presence (or are willing to develop one), affiliate marketing can be a lucrative option for you. Leverage on your social media platforms to promote products and earn commissions on sales through your unique links. Just remember to ensure the products you promote align with your values and are safe for consumers.
In your pursuit of financial freedom, remember that wealth is both a blessing and a test. Your success provides opportunities to give back and help others in need. By building financial health, you position yourself to not only secure your future but also support those in need, embodying the spirit of shared responsibility and care.
And spend in the way of Allah and do not throw [yourselves] with your [own] hands into destruction [by refraining].” (Surah Al-Baqarah, 2:195).
Let’s take the first step today—whether it’s exploring a side hustle or starting an investment. Together, we can grow wealth ethically and purposefully.
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Disclaimer: The information in our blog articles and provided by our brand ambassadors/KOLs is for general insights only and not legally binding. We strive for accuracy but cannot guarantee the information’s completeness or reliability. For legal matters, consult official documents or contact an authorised Ouch! representative.