March 26, 2008, 6:00 am

How To Create An Alternative Source Of Income Part 1

by: The Financial Blogger    Category: Alternative Income
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– Establishing The Possibilities –

Two young kids, a MBA and a new job don’t seem to be enough. In fact, creating chaos in my environment is probably my favourite sport! However, in order to keep a minimum level of stability, I can always count on my wife to bring me back to earth and to encourage me in my 10,000 projectsJ. We currently both work on our $1,500 project in order give her the option of staying home and taking care of our children.


While becoming more Frugal and restructuring our finance did certainly help (we saved $400 overall even with the addition of the housecleaning lady), we will need to create alternative sources of income in order to compensate for her salary. So this is where I am; trying to figure out the best way to create a durable and substantial source of income.

As I (hope) just created an alternative source of income that should bring more money every month, I thought I would go back on the process I went through before coming out with something that works. Over the next weeks, I will post about the different steps of creating an alternative source of income.

#1 Establish the possibilities

Ok, so you want to make more money? So do I! In fact, everybody wants to make more than they are right now. This thought led me to two conclusions:

– It isn’t going to be easy as if it was, everybody would do it. People that are making money did not always have it easy. Ask Mr. Trump who when bankrupt before becoming the billionaire he is today.

– It will require extra energy, work and effort on everybody’s part. We often forget that it is not only about you doing more work, but also about the whole family doing different sacrifices.

Based on this premise, I started to think about what could be done from my brain and my resources. The key point was to start from something I know (or partially know). Keep in mind that you still have to go to your day job and do everything else. If you go ahead with something you need to learn, this will require even more effort, time and energy. You are the only judge to know if you are capable of something or not.

I was deceived by the result of my personal research. I realized that there was not much I could do that would actually create money:

Investment income

Building a portfolio giving high dividend and interest income would not be a problem if I had the money to build it! In order to make significant cash (over $100 a month), you need more than a few thousands of dollar!

Rental income

I thought of that too. My parents are pros to find deals and they just love to renovate properties. The problem, again, is that I don’t have sufficient cash down to buy one. I need at the very least 10% cash down and even then, I didn’t find any properties where the revenues were higher than the mortgage payment.

What I like

This is where I find a way to create a source of income; I am passionate about finance and I can’t live without my laptop… An internet company:-D I don’t expect to make the full $1,500 from my blog (even thought some people do it!) but, I decided to combine my effort with my best friend, who is a computer wiz, in order to create several sites that would generate income on a monthly basis.

In conclusion, I would say that internet was my own personal solution. However, there are million of new business possibilities that you can find according to what you like and what you are good at. Don’t think it is that easy, in part 2, I will explain who to choose a partner.

How To Create An Alternative Source Of Income Part 1

How To Create An Alternative Source Of Income Part 2

How To Create An Alternative Source Of Income Part 3

How To Create An Alternative Source Of Income Part 4

How To Create An Alternative Source Of Income Part 5

How To Create An Alternative Source Of Income Part 6

How To Create An Alternative Source Of Income Part 7

How To Create An Alternative Source Of Income Part 8

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Comments

how about some blatent self promotion…I’d like to check out your sites $1500/month sites. Can you post some links?

The only suggestion I could give you is take the amount of time you budget for an alternative source of income and add 15% to it. The down side of opening your own business, no matter how small it is, is the sheer amount of paperwork you have to deal with on a day to day basis.

by: The Financial Blogger | March 26th, 2008 (8:57 pm)

MCM,

As nothing is settled yet (still waiting for the incorporation approbation from the gov), I prefer to keep the rest of the project beside this blog in the fog… The other reason is that, even though we are making money out of them, they are not showing the quality we would like them to show. There is still a lot of work to be involved before saying “we are ready”. I’ll surely post about them someday 😀

TMW,

You are absolutely right about the time required to achieve our goal (we always need more hours in a day!) However, I must say that I leave the paperwork to my accountant 😉

kudos – and i can’t wait to hear your story unfold. It could almost be a blog in and of itself, you know (ie. your quest to bring in an extra $1500)

by: The Financial Blogger | March 29th, 2008 (6:28 am)

Nancy,

If I ever made it, I might create another blog on how to make money online. It seems that John Chow is doing pretty well with that 😉 LOL!

Great article. If you create website as well as writing this article, it sure to be a hit.

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[…] How To Create An Alternative Source Of Income Part One by The Financial Blogger My personal favorite post of the carnival is part one of a four part series on creating a viable alternative source of income.  This series is a great read for anybody looking to diversify your income away from total reliance on your day job. […]

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$1500 in blog income/month is achievable. But you definitely need to promote your blog a lot. If we assume that you get a CTR of 4% (for example) and you get $1/click, that means you need at least 37,500 unique visitors/month.
You might want to invest your blog income for one/two years in a diversified portfolio of dividend growing stocks yielding 2-4 %. That way you will have at least some stability in the month-over-month fluctuations in your alternative income.You are correct though, that to generate $100 in monthly dividend income (1200/ year) you need at least 30,000- 60,000 to start with (assuming dividend yields of 2-4%)

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There are so many opportunities with Internet. Diversifying your blogging between multile sites is a great idea. Think about some that you should not put much type in contnt but more linking and aggregating one.

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Great intro!

I will keep on reading!
-Dustin