Having some extra cash to spend is always a good thing, whether it's for emergencies, or if you want to buy your kids something special this Christmas. However, with the rising cost of goods, it gets harder and harder to try and make ends meet, especially if you don't have extra sources of income.
And for stay-at-home moms who take care of the kids and managing the household, having an extra source of income makes it easier for them to budget household expenses.
It also helps stay-at-home moms become more financially independent and not always depend on their spouse for their money.
What are these extra sources of income?
There are generally 2 sources of income; passive and active.
Sources of passive income are things such as renting a house or a unit, investing in stocks, or in a business where you're not actively involved. Money lending is also a source of passive income, as well as anything that doesn't require a lot of effort on your part.
On the other hand, active income is something that you receive in exchange for a service. These include working for a company, selling products such as in a sari-sari store, or owning a carinderia at home.
Taking advantage of both of these extra sources of income is very important. This is because having a passive source of income makes it so that your money works for you. Passive income sources usually have the most potential for growth.
Additionally, having an active source of income not only makes you more productive but it helps provide you with the money that you can invest in passive sources of income.
Which source of income is right for you?
There isn't a one size fits all formula for financial success. They key thing is to know your abilities and how much time and effort you're willing to spend.
Let's say you're a stay-at-home mom who takes care of your baby. It's going to be hard for you to start a full time business since you'll need to spend time taking care of your little one. If that's the case, you can explore selling goods on a per-order basis. These include pastries, sweets, small jewelries, accessories etc.
Having a full-time business empowers mothers
However, for moms who have some extra time, such as those whose kids already go to school, having a full-time business can be boon to their income. A good way to get started would be to open a small store, such as a sari-sari store.
Sari-sari stores are an important hub for local communities, especially those who are far from supermarkets or bigger stores.
In particular, Unilever's SuperStore program provides a good way for micro and small business owners to get started on the path to success. Not only do they provide quality products to members, they also teach their members through Kabisig Summits which help budding entrepreneurs learn the skills to make their business a success.
These include financial advice, how to handle customers, how to choose the right products to sell, how to keep inventory etc. The SuperStore program is designed to help people help themselves to become more empowered and improve their standard of living.
Along with their growing business, Unilever wants to improve the lives of Filipinos through their sustainable business practices and fostering inclusive growth for 100 million Filipinos.
Financial intelligence is also very important
Did you know that here in the Philippines, 77% of Filipinos are unbanked? That means that whatever money they earn, they store it in their wallets or in their homes, and not in a bank. This shows that a lot of Filipinos still lack financial intelligence. And financial intelligence is key to making sure your money is always spent wisely.
While it might not directly increase your income, financial intelligence helps you make better decisions with your money. Being financially intelligent helps you avoid making unnecessary purchases and wasting your money. It helps you make the right decisions so that you can enjoy the fruits of your labor without any guilt.
Having your own business won't mean much if you're not making the right financial decisions. So it's always a good idea to try and learn these skills, which the SuperStore program also provides.
These tips should help you augment your family's income as well as make sure that you're financially ready for the future.
READ: Practical money advice from an Ilocano mom