3 Clever Ways to Diversify Your Income for a Rainy Day

extra income for a rainy day

Income Diversification As Your Contingency Plan

Job security is an illusion, you need a solid plan to diversify your income online safely & reliably for a rainy day.

What does diversify your income mean?

Income diversification is cultivating more than one source of income. Means making extra money in multiple streams so that you aren’t at the complete mercy of one set of circumstances.

This is all about creating your financial safety-net. Well, I know, Easier said than done. But, we’d better prepare the Contingency Plan through Income Diversity.

How to diversify your income, different people have different opinion & idea, and there are many “10 ways to make extra income” posts on the internet.

Income Diversification – Essential Underlying Concepts

However, people often find most of them difficult to continue, because I personally feel they don’t satisfy the below 3 basic underlying concepts for multiple incomes creation:

1. Don’t bother your time so much

Assuming you have a daily job, extra income should come from side earning (otherwise it can’t be an extra income). It should not negatively affect your main-stream work. Whatever you do it will be competing for your time, attention and resources. We have only 24 hours a day, therefore it’s wise to earn from the task of which nature can be ideally Passive or Semi-passive as much as possible.

2. Enjoyable and /or Informative

We’re a human being and have 2 fundamental desires of Want To Feel Good and Want To Learn. In order to get you constantly motivated and make the task sustainable, the task should be something related with what you are familiar with & like to do eg. hobby/favourite stuff, or something you’re interested & want to know better.

3. Little Correlation with your main income

Income diversification is all about risk aversion, often said as Don’t put all your eggs in one basket. If you work for a construction company, don’t try to get extra money from the real-estate area such as property-related company stock. If the economy slowdowns & goes into recession you may lose all. In other words, selecting the opportunity that has no or little Correlations with your other incomes is important from a risk management perspective.

diversified online income image

 

3 Clever Ways To Diversify Your Income Streams

Having taken all the above 1-3 concepts into account, the following 3 approaches sounds viable:

1) Make the best use of Expertise of Experts in Forex / Financial Trading (Passive Trading)

to save your time and increase the chance of success rather than doing everything from scratch on your own, and to sharpen your radar on global Political & Economic climate/movements means to increase your knowledge & insights on international affairs as well as improve your financial literacy.

2) Enjoy Sports Events (Advantage Gambling)

to get more fun & excitement through your favourite sports events.

3) Play Highly Strategical & Mathematical Game (Poker & Financial Manual Trading)

to develop logical thinking with emotional intelligence, which will increase your brain power, namely activate your brain, which will help suppress ageing by combating Alzheimer’s disease etc, and help your 1) activities achieve better results.

three ways to diversify your income image

Let me elaborate a bit further;

  • For 1), in order to do so, Forex trading should be Passive Tradingand you can use the PAMM (managed) account, Copy Trading and Robot (software) System.  These 3 Methods are basically 100% passive income, means you don’t have to do trading by yourself but someone will do for you, which you can find more in 3 most practical & safest ways.
  • For 2), we use Advantage Gambling or Advantage Play. Sports Betting is one of 6 Advantage Plays we use. As explained in the next section, although it says gambling we Never Gamble. In fact, the above passive trading is not risk-free, but most of the advantage plays are basically risk-free. Because we don’t rely on chance but count on mathematical advantage. Find more in Advantage Play – Probably Only Surest Method To Beat Bookmakers & Casinos For Anybody.
  • For 3), it’s the area involving more skill & knowledge thus more time & more effort required rather than passive. In fact, even you do passive trading it’s recommendable for you to do your own trading, which will definitely help you select the right trader or account you follow. You need good training courses before you commit your own trading. So, you need to consider how much time you can spare in your daily life. For advantage gambling, we use Online Poker for this purpose, please learn more about how online poker works.

Generally speaking, all 1) – 3) have very little correlations with other assets class such as Stocks, Bonds, & Commodities and also the income from your daily job unless you work for a financial trading related firm like forex broker or betting bookmakers.

 

Income Diversification First Concern – Gambling

When it comes to the Advantage Play, no matter what I explain, some of you may still say I don’t do gambling.

BTW, you may find How To Make A Living Sports Betting – Full Assessment of 3 Methods interesting. 

Gambling vs Investment Diagram

Anyhow, let me show you 2 examples that prove Advantage Play is Not Gambling.

Matched Betting

This method for Sports Betting has been catching on worldwide over the last 10 years. Nearly 300,000 ordinary people in the UK & Ireland alone are supposed to use this method to make fast extra money on the side.

It has been introduced in several established media such as Guardian – Free bets mean you can clean up as bookies meet their match. Very briefly, how it works is;

  • The organisations you use: Bookmaker such as William Hill & Betting Exchange like Betfair
  • The profit source; Bookmaker’s Bonuses & Free Bet Offer such as “Bet £10 Get £20 Free Bet”
  • You Do 2 transactions; Back (bet on win) with Free Bet at Bookmaker & Lay (bet on NOT win, means both lose & draw like football match case) with your own money at Betting Exchange so that you cover all the outcomes
  • No matter what the event’s result will be, your losing & winning will cancel out each other, so break-even of plus-minus 0. In the real practice, usually, 2 bets are not perfectly offset due to the odds difference & exchange commission therefore you make a small loss called Qualifying Loss.
  • However, the stake you bet at Bookmaker is Free Bet (not your money but free money) therefore it will become your net profit.
  • Success factor is how to minimize this qualifying loss in the process, and as explained it is Risk-Free.

Yes, now you understand that it’s Risk-Free because we Hedge all the bets we place and Guarantee the Profits from Bookies’ Free Bets / Bonuses.

For further details, suggest taking a look at Matched Betting For Dummies where you will find every basic of the matched betting. BTW, many people imagine matched betting is for only UK & Ireland, wrong, check;

Value Vetting

3 Smart Ways To Make Fast Extra Money Online & Why We Need Extra Income - Enemy Of Bookies

Have you heard the name of Patrick Veitch? Patrich is the man most feared by British bookmakers. The Daily Mail, as well as The Telegraph, reported that Dubbed Enemy Number One. Patrick Veitch went from being a Cambridge University mathematics scholar to the man feared by the bookmakers.

He works 80 hours a week on his system and uses a host of agents to put on his money on horse racing.

He commented that horse racing is such a multi-layered conundrum, what you’re looking for is the factor that the bookmakers have got completely wrong. That takes strategic thinking, experience and thoroughness. The fact of the matter is, there is no short cut. The only way to win is through sheer hard work.

The rewards can be seen in his splendid townhouse in the north of England, a smart London pad, his own helicopter and his Ferraris. He uses his intelligence and mathematical brain to analyse form and spot holes in bookmakers odds.

Unfortunately, Patrick doesn’t produce tips, but there are a few excellent Tipsters who constantly produce Value Bets, not so smart as Patrick though, will help you make fast extra money (so, in fact, it’s also passive trading/betting).

Are We Yet Trying To Gamble?

Many of you will still say Patrick is an extremely rare and chosen gifted man. Yes, such a huge win must be rare.

However, it’s also the fact that there surely exists a bunch of people (5% or more depending on the categories though) who continuously win and make living betting.

So, let’s define “Gamble”. Mr Naoya Kihara, the first Japanese Professional Porker Champion defines that gamble is Putting Money Into Something With Negative Expected Value.

three smart ways, porker champion

Means taking the excessive risk to end up with a loss. Poker is not a gamble for Mr Kihara because he plays only the game of which expected value is positive. That’s exactly the underlying concept of our Advantage Plays. 

Everything is based on the theory of probability and expectations that is gauged in EV (Expected Value) as I will explain a bit later. 

For this particular point, you may want to read Beat The Bookies By Knowing How Your Enemy Makes Money – Secret Of Odds.

When it comes to Poker, Play Online Poker For A Living – The Most Practical Solution will give you a good insight into how much you can realistically win poker every month. 

A Bit More about Expected Value

Very briefly, imagine you find a coin flip game stall in a festival, and assume the storekeeper offers you if you win you will receive £10. Then what is the maximum stake you should accept to do this game?

Probability of head or tail is 50:50, means your winning probability is also 50:50 that is 50%. Then your E(X) = $10 (if win) x 50% + $0 (if loose) x 50% = £5 (see the formula below).

Therefore when the stake required is less than £5 like £4 you should do this game but if it is larger than £5 such as £6, then you should not participate in the game.

Please be noted it’s possible that you may keep winning over 10 times consecutively under £6 stake based on simple luck, called Variance. But in the long-run say play 100 times, the probability theory surely applies and you will lose, vice versa.

EV Formula

The handful of constant winners are not gamblers but stick to this principle. When it comes to Sports Betting, the expected value formula can be expressed as:

Expected Value (EV) = (Probability of Winning) x (Amount Won per Bet) – (Probability of Losing) x (Amount Lost per Bet)

For the above coin case, if you stake £6 to participate the game your EV = £5 of E(X) – £6 of Stake = – £1 while if you stake £4 to participate the game your EV = £5 of E(X) – £4 of Stake = + £1.ev-cartoon

Anyhow, the bottom line is as long as you bet on Positive EV, namely Value Betting, it is no longer gamble but something you will surely make money in long-term.  Here, the Law of Large Numbers (LLM) applies.

We share a few workable systems related to value betting as follows;

The typical system based on LLM is RebelBetting Value Betting Software – see theProven Model to Double Your Bank in 3 Months, which can be used by almost all players in the world.

Proven top Software (the above RebelBetting is one of them) / Tipsters / System are the ones that constantly identify and provide you with such Value Bet. So, the key factor of success is how to find good software/tipster/system as well as good FX traders/robots. Not convinced? Still, feel risky move?

Then suggest checking Smart Betting Club – success ingredients for global players, which applies mainly to Europeans though still can be used by the rest of the world except US

&

Strongly suggest seeing ZCode System – formula to earn $1,500 profits every month safely, which is said to be one of the most successful betting systems in the world. See if you’re lucky by checking activation status of the huge discount link, this system works for every player in the world

Ponzi Free

When it comes to passive trading, we listed the PAMM (managed) account, Social Network Copy Trading and Software (robot) System. Why?

As the Internet age, wherever you are, you can access to Forex Market and Sports Events 24 hrs/day worldwide through on-line Forex Brokers and online Bookmakers. You can make fast extra money online at your convenient time by using Professionals on the internet.

However, it’s widely believed that over 90% of on-line investment programmes & business opportunities such as network marketing are scams or extremely short-lived due to the poorly constructed business model.

So, always resort to your common sense and turn your back on tantalizing promises of Easy Profits and Get Rich Quick advertising. Let me elaborate a bit further on this security issue because it’s very important.

When it comes to Passive Income, Pooled Fund is one of the most popular investment vehicles. Because any funds in which multiple investors contribute assets and hold them as a group are classified as pooled fund such as a mutual fund/unit trust/hedge fund etc.

These funds are managed by a professional trader, so you don’t need any education & skills to trade for yourself but they do everything for you.

However, people are often tricked by Ponzi Scheme which is a popular fraud in Pooled Fund Structure represented by Bernie Madoff’s $60 billion con. Because your money is not under your account but in someone else (trading company etc) account.

madoff ponzi scheme

On the other hand, Managed Trading Account including PAMM (Percent Allocation Management Module) is an investment account which contains a portfolio of securities that is owned by an individual investor. Means you yourself directly own, but are chosen and traded by a hired professional money manager on your behalf (100% Passive).

The trading can be managed by human namely discretionary trading or automated technique such as using a robot that can eliminate all emotion. In the Managed account, all your money never leaves from your hand but are kept in your brokerage account under your own name. You grant permission to the experienced traders to access to your account so as to trade on your behalf. But the permissions are limited to trading only and he cannot deposit any extra fund to the account or withdraw from your account.

Let me stress that you are the proprietor of the account (Ponzi Free). Generally speaking, managed account demands at least $100k or more to agree to work only for you. But lately, there are many managed accounts you have the advantage to hire them with smaller amounts – but of course, the broker won’t work only for you. However, the new technology of PAMM – Percentage Allocation Management Module provides you with the solution allowing the trader on one trading platform to manage the simultaneously unlimited quantity of managed accounts.

Trader’s activity results (trades, profit and loss) are allocated between managed accounts according to the ratio. The bottom line is that the PAAM such as this allows small investors to enjoy the security & return of managed account starting from even $100 or less. So, let me summarize the key characteristics/benefits of Managed Account & PAMM as follows:

Own control

  • only the owner of the account can deposit and withdraw investment funds at any time
  • the owner can revoke the right of the investment manager to trade the account
  • the owner may close the account at the end of any trading week

Transparency

  • the owner has real-time access to their account and can view all trading activity taking place therein.

More Secured Ways

When it comes to Social Network Copy Trading and Robot Trading (both are auto-trading, so passive income) there is no room where Ponzi scam tricks you. Because you manage your accounts for yourself by using the signals from Experts or Robots which allow you to make autopilot trading. Never get your money leave your account and never get any others to access your account.

Regarding the Sports Betting, unlike FX trading, there is extremely few pooled fund. You should and are able to bet in your own bookmaker account manually in general but some sophisticated software will make the whole process easier especially for Sports Arbitrage.

For value betting, you do it basically without any input from your brain but by just following the instruction you receive for every bet from a tipster or a computer system. Your decision making rests with determining which bet signals to take.

Let me stress when you engage in On-Line Money Making Programmes, it’s better to avoid the Pooled Fund given the availability of so many other safer choices.

 

Diversify Your Income – Warp Up

Our 3 Pillar Methods & Vision

The best part of the approach explained in this guide is that you can start building additional income streams by satisfying 3 elements of 1. Maintaining your full-time job, 2. Enjoyable and / or Informative Task, and 3. Little Correlation with your main income.

We all have different preferences and therefore our decisions will vary significantly.

Whatever you decide to do, or not to do, your contentment and satisfaction, in the end, is what truly matters.

As I said in “About Us”, our vision of this site is;

Help Ordinary People From All Over The World Make Money On The Side Reliably & Sustainably, Which Will Enrich Their Life For Long Term

We wish the above 3 smart ways will fit your needs and eventually contribute to achieving financial freedom.

 

Good Luck!!

Joshua Walker (bio)

Editor – Global Extra Money (GEM)