Are you aware about seven great things you can do with supplemental income? You have the option to splurge it to live luxuriously. Understandably, some of us may need supplemental income to meet living costs. However, there are several amazing things you can do with the extra money and try to become rich.
Surely, you would love to become wealthier. Continue reading since I will now explain seven amazing things that you can do with supplemental income.
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Defining Supplemental Income
Broadly, supplemental income is money you earn from sources other than your regular job. There are various ways to get supplemental income.
- Bonuses, Incentives, Commissions: Bonuses, salary increments, incentives for excellent performance, and commissions on sales from your employer count as supplemental income.
- Part-time Jobs: If you do not have a part-time job, look for one. There are several great online and offline work from home ideas if you are looking for a part-time job.
- Agriculture/ Ancestral Property: Several people have agricultural land and ancestral property. Though these people live in urban centers for work, they get income from crops, fruits, and rent from such properties.
- Rent & Leases: You could be among those lucky enough to have more than one house. Renting or leasing it to reliable and honest persons earns you excellent supplemental income too.
- Interest & Dividends: Should you have some investments that fetch good interest and dividends, use the supplemental income to make more money.
7 Great Things with Supplemental Income
Most of us would definitely come into at least one of these categories and will be earning supplementary income. So, what would you do with the money? Here are seven great things to do with the extra money.
Invest in Mutual Funds
India’s Mutual Fund industry is on a roll: By November 2018 end, the Mutual Fund industry grew by whopping Rs.3 trillion to stand at a total of Rs.24 trillion. Projections are, that this trend will continue in 2019 and beyond as smaller, retail investors buy Mutual Funds as lump-sum or Systematic Investment Plans (SIPs).
Mutual Funds provide excellent returns over a span of time. Indian Mutual Funds have an excellent track record of bouncing back after any stock and money market downturns.
Crowdfund a Startup
India ranks as the world’s third largest startup hub. Undoubtedly, India has a vast talent pool. This is evident from the number of Indian techies that work with some of the largest IT corporations in the world.
Nowadays, lots of techies launch their own startups in India instead of migrating abroad. And some of these startups are very innovative. In fact, global giants including Google and Facebook continue to buy successful Indian startups.
You can invest in a startup through crowdfunding and get stocks in these new ventures. Securities & Exchange Board of India (SEBI) regulates such as equity crowdfunding. Your investment in a promising startup can earn you big money when a large corporation acquires it and wants to buy stocks held by crowdfunders. This is a superb thing to do with your supplemental income.
Trade on Stock, Currencies & Commodities Market
Does the idea of trading on stocks and commodities market scare you? Think again. Millions of Indians are making an impressive amount of money daily by trading on stocks and commodities markets. And the good news: you do not need to be an economics expert or financial wizard to trade on stocks and commodities markets, Crediful has you covered.
Use your supplemental income to open a dematerialized or Demat and Trading account with any good stockbroking company. Here, I suggest some caution. Firstly, open a Demat and trading account with a reputed company only. You can find a list of top Asset Management Companies in India online. Opt for a full service broking firm.
These top companies provide vital advice on which stocks to buy, how much to invest and when to sell them to earn maximum profits Plan for Retirement
Launch Small Business
Use your supplemental income to launch a small, home-based business. Utilize your skills and experience to create products and services that are in popular demand. To do so, you will need to study the market for demand, pricing, and other essential details.
Once you have the necessary information, chalk your own business strategy and launch. Market your business online to ensure it makes money even while you are asleep. Your supplemental income can ensure the business never runs out of money. That you have adequate funds for innovations, expansion and above all, tiding over the period before the business starts spinning money.
Invest in Bollywood Movies
If you are a movie buff, investing in Bollywood movies is something great you can do with supplemental income. Investing in Bollywood is not for millionaires only. Nowadays, there is a system called Movie Funds where smaller investors can chip in with money.
Understandably, not all movies make it as blockbusters. Hence, you have to be careful where you invest that supplemental income. In a country where billions of people are movie addicts, investing in this industry often proves worthwhile.
Buy Real Estate through REITs
Real Estate Investment Trusts or REITs are a new form of investment in India. REITs are common in the US and UK. They offer fantastic opportunities to invest in real estate without actually buying a home, property or plot of land.
REITs are just about entering the Indian market. And they are destined to succeed. Enquire with your banker or financial advisor about available REITs. Since this is a very new form of investment, you might get some great bargains to invest supplemental income.
Plan for Retirement
Thanks to the Indian government, and public and private sector NBFCs, there are several retirement schemes available in the market. Entry to these retirement and pension schemes starts from as low as Rs.1, 000 per month.
There are other schemes available too. Financial planning for your retirement is something really great thing you can do with supplemental income
Definitely, you are exerting extra efforts to earn supplemental income. The above seven great things to do with supplemental income make your money work harder and fetch you great returns.