When it comes to increasing annual income, many financially successful people swear by fostering multiple income streams.

Here are five tips to help you maximize your potential by diversifying your earnings.

Capitalise on Your Skills

What are you really, really good at?

Consider leveraging those skills for financial benefit. If you have a keen eye for detail, can you turn that into a freelance copyediting career? If you are great at drawing, why not try a stint as a designer for other small businesses or individuals? Earning extra income is all about capitalising on your potential!

Passion Projects

Find what you’re passionate about and evaluate whether you can turn that into a viable business. If you love writing, consider publishing an e-book. If you enjoy making jewelry or painting, think about producing work for sale or accepting commissions from potential customers. But remember to start small as it’s important to consider the feasibility of these ventures.

Invest in Property

While investing in a real estate property comes with its own set of challenges, it also has the potential to earn you extra income, from rent profits to tax benefits. Consider investing in a residential property that you can rent out long-term or advertise as a short-term vacation property, but do so wisely, keeping in mind the cost of maintenance and a mortgage.

Sell a Product

Brands like the successful e-boutique, Nasty Gal, started small by re-selling vintage clothing online. Whether you make your own product, re-sell an existing one, or make a foray into electronic services like teaching an online course, a concrete product is always popular with customers and can take many forms.

Monetise your Social Media or Blog

Today, almost everyone has a social media account or website of some form. While it takes some time to build a following, a captive audience can earn you sponsorship deals, brand partnerships, and consultation placements. Build your content creation skills, focusing on content that is helpful to your readers. Utilise hashtags appropriately, and sign up for analytics for a better understanding of your audience.

Having a primary income creates a solid foundation for financial comfort, but with these tips, you can earn even more by building multiple sources of supplementary income.

Sources: Forbes, The College Investor, Good Financial Cents, and General Assembly