Diversify Your Income, Millennials!

In my previous article, I’ve written about some typical mindsets that millennials should not have anymore as things have changed. Our lifestyle and cost of living are almost incomparable with our previous generations, not to mention the income ratio we’re earning now compared to the cost of living. Medical cost has also been a burden to many people as the number of government hospitals aren’t able to meet the increasing demand of people getting sick so we have to opt for private hospital, and we have to fork out a commitment to get a medical card insurance to pay for the expensive medical treatment.

Recently I discovered an article from Theworksalaryman, titled 30 OVER 30: A financial goal to start working towards by the time you’re 30. It is about millennials should set financial goals for themselves when they start working. They should work to earn 30% passive income by the age of 30, which I think is a good idea because I don’t think we can earn enough to retire if we were to stick to one job (read here to find out how much you need to retire comfortably). So, Theworksalaryman said that if we were earning SGD4,500 gross income a month, we should aim to earn 30% of it (SGD1,542) from a side hustle. This is also an advice given by many people, that we should get a side hustle now to diversify our income. It is also what we realized from going through the pandemic right now, you can listen to the podcast from BFM Radio station on this topic here.

I, myself also going through a hard time now as I do not have a full time job earning a decent salary as my new employment would be only be starting mid of next month. They postponed my onboarding as the management is afraid of hiring newcomers to reduce the exposure to the covid-19. So, throughout this period of MCO (movement control order), I’ve come to realize that it is very important to diversify your income, just like how one should diversify their investment portfolios.

SS15 Subang's Bubble Tea Street Now Looks Like A Ghost Town ...
Many businesses couldn’t sustain their businesses from the lockdown.

For those who still have an employment, I would suggest to take your extra time to find other things to do that can help you earn a side hustle.

  1. Content writer
    You may try to be a content writer (like what i’m doing now), and aim to build your traffic, hopefully later on you can add relevant advertisements or find sponsors to earn from your contents. You may consider vlogging if you prefer to speak in front of a camera. Besides, I find that videos are able to capture people’s attention better than articles.
  2. Rental income
    If you own a property right now then it’s a good idea to rent out some of your unutilized rooms. This can not only help you to reduce your burden from your mortgage loan, you can also earn passive income from rental if the monthly rental income is higher than your monthly instalment.
  3. Learn new skills
    Most of us are working from home now and we have much more extra time for ourselves. Instead of wasting it by watching Netflix, take the time to learn a new skill or two. If you are currently an unemployed Malaysian, MDEC has partnered up with Coursera to provide free courses to you. You may register with this link and only valid till 31 December 2020.
  4. Sell with your skill
    If you have specialized skills like playing musical instruments, or baking and cooking, you can promote yourself on social medias and see if anyone would be interested to learn from you. I’ve also seen many “chefs” trying to sell cakes over social medias. In fact, I’ve been baking some burnt cheesecakes lately too and I find it not too hard to learn baking after all. You can also consider to be a freelancer if you have skills like digital marketing or graphic design. These are skills that vloggers or content writers might need. I may need one too.
  5. Be an agent
    If you’ve been seeing how successful some insurance agents, property agents or health nutrition agents out there and are skeptical about their income, I would say take a try to see if it suits you. The recurring purchases/premium payment can help you accumulate your income over time.

These are some of the things you could consider to help you earn a side hustle. In case you lost your job due to unforeseen circumstances like the pandemic now, at least you still have another income supporting your commitment and lifestyle.

Please share this article if you find it informative. Your support will definitely motivates me to write more and help more people to reach their financial goals.

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