Looking to diversify your income streams? The days of putting all your eggs in a single basket are long gone. In today’s economy, it makes a lot of sense to have a little extra cash coming in. Something to supplement your current income—so you’re not left scraping by or worrying about the future.
Whether you want to live comfortably now or keep building toward your dream lifestyle, a small investment can go a long way. It’s a smart way to secure your wealth for those tougher days—or even for the days you want to treat yourself to a holiday.
We’ve all felt that need for a financial boost. If this sounds like you, we’ve outlined some ways you can invest outside of your 9-5—depending on your current finances, goals and risk appetite.
Wealth Creation Strategy #1: Investing in Real Estate
Real estate is one of the most reliable ways to invest and grow your wealth over time. Remember playing Monopoly as a kid? Stacking up properties, collecting rent, and watching your wealth grow? Well, real-life real estate isn’t too far off—it’s a solid strategy that can provide both rental income and property value increases.
If you’re looking for steady cash flow, investing in apartments or units might be a good start. They’re typically more affordable than houses, offer higher rental yields, and require less maintenance. Things to be mindful of are the costs associated with body corporate (or strata fees), which come with owning a unit, apartment, or car park located on shared property. These fees cover the maintenance of common areas and facilities. For long-term growth, houses might be more appealing. Land tends to appreciate over time, meaning houses often see stronger capital growth, especially in areas where land is scarce.
Wealth Creation Strategy #2: Shares and Investing
Owning shares is like owning a little piece of someone else’s company, giving you a stake in their success. It’s another potential investment strategy that can contribute to your wealth creation strategy.
If you’re new to shares and want an easy way to start, you can choose to invest in the Australian Equity Market via some managed investment fund providers. These funds pool money from multiple investors and are managed by professionals who choose a mix of companies to invest in, helping to reduce risk. You can invest in Australian or global companies through these funds, and while they offer potential returns (on average 4-10% per year depending on market conditions), there’s also some risks involved, and you’ll pay a management fee.
For those confident in managing their own investments, buying shares directly via trading platforms is straightforward. These platforms are quite easy to use, giving you access to your portfolio and offering multiple trading tools and insights. You can earn money through dividends (profits shared with shareholders) or by selling your shares when their value increases. However, it’s important to remember that share prices can fluctuate based on a company’s performance and market conditions, so you’ll need to do some of your own research. Overall share investment can be a smart way to generate additional cash flow.
Wealth Creation Strategy #3: Building A Side Business
Another income stream that can flow in while you’re busy with your day job is starting a side hustle. If there’s something you’re passionate about—a particular hobby for example—you can turn that into extra income by offering that as a service after hours. If it’s product-related, you could even dive into building an online store on popular selling platform. While starting a side hustle or small business takes effort, planning, and sometimes investment, it can grow into a valuable source of income. With the right passion and preparation, this alternative stream of income could become a key part of your wealth creation strategy.
It goes without saying that all investments come with risks, and if in doubt, it’s always wise to seek advice from a trusted financial expert. Seeking guidance from professionals can save you time, effort, and help you avoid costly mistakes. Our team here at Oasis Financial Planning can help you come up with a wealth creation plan that adapts to your lifestyle, get in touch!
