Like most investors*, my QPIRs have always been limited to the amount of funds I’ve invested. For instance, if my annual yield is 2%, I get to receive £20 for every £1,000 of invested capital at the end of each year. After optimising tax efficiency, dividend reinvestment, diversification and compound interest, there’s only so much you can do with index funds.
But now enter the Side Hustle, a project you can start outside your main career and as everyone is good at something, that could be as simple as creating a website teaching others something useful. If you can create content that’s valuable to others, you can turn your website into an online property, almost like a virtual real estate empire. The advantage of an online side hustle (OSH) is the potential to scale it up “without limit”, the only boundary being how hard you’re willing to work.
As you can see from the table below my very own OSH has finally broken the three figure mark and although it’s taken more than a year to do so, there have been weeks when I’ve been too busy to produce any work. To start your own OSH I would recommend the following hosting service, which is the one I’ve been using for the past 18 months now. For the price of a coffee (ironically) once a month you could hone your skills almost risk free and earn yourself another income stream.
Why do I pay for a hosting service when most people blog for free? Instead of ukdoctoronfire.wordpress.com or ukdoctoronfire.blogspot.com where I would be borrowing online space (akin to couch surfing), I choose to pay rent to the hosting service for my very own domain name – ukdoctoronfire.com. This looks more professional but also helps to establish your own brand and allows monetisation opportunities.
|Q4 2017 Total||£1,048.82|
Most of the passive income you see above is entirely automated, meaning I don’t give it much thought until I receive an email informing me that the dividends or P2P interest has been paid into my account. Some more figures for those who are interested:
Q4 2016: £965.64
Q4 2017: £1,048.82 (+8.6%)
P2P lending: £574.75 (54.8%)
Dividends: £408.03 (38.9%)
Online Side Hustle: £66.04 (6.3%)
Apart from my goal of receiving £6,000 in quarterly passive income I’m also aiming for a 4 x 4 portfolio where real estate, P2P lending, dividends and OSH all contribute approximately 25% each to the overall income.
The following resources have all helped me on my current journey and I strongly encourage you to check them out, but always do your own research prior to making any investment decisions.
I also felt this book and this one were instrumental in teaching me the key concepts about having a low risk side hustle whilst simultaneously holding down a demanding day job. You can actually get one of these books free in audiobook format if you sign up to a 30-day free trial via my link. Listen during your commute to work or for 15 minutes every night before you drift off to sleep if you’re busy. If you don’t like the service then you can cancel anytime within those 30 days free of charge and still keep the audiobook.
*I use the word investor but I’m still a very small potato – when I think investor I think of a high net worth individual with millions which is definitely not me