The gig economy represents big and fast-growing business in the UK, with this having nearly doubled in size between 2016 and 2019.

Interestingly, some 48% of this total number work in the gig economy as a way of generating a secondary stream of income, with this representing a viable method of coping with a strained economic climate.

But what exactly is a secondary income stream, and why is this important in the current economic landscape?

The What and the Why – Creating a Secondary Income Stream

If there’s one thing that has defined the socio-economic landscape since the first coronavirus breakout, it’s economic uncertainty.

By creating additional sources of income in the digital economy (or through passive means), however, you can reduce your reliance on a single job or income stream and create a far greater sense of financial stability.

Of course, the term ‘secondary income’ refers to a viable source of money that’s completely separate to your primary job, whether this is earned through the completion of remote tasks, the selling of goods or through passive means (we’ll have more on this below).

Because there’s a wide range of options available when seeking out secondary jobs, this endeavour can also help you to acquire new skills and enhance your resume in the eyes of employers.

The How

The question that remains, of course, is what are the best ways of generating a secondary income in 2021? Here are some ideas to keep in mind:

• #1. Freelancing: The gig economy is driven by the demand for various jobs, including copywriting, web design and SEO. These skills are highly sought after in the freelance marketplace, particularly as companies look to reduce their permanent workforce and hire people on the basis of individual projects. So, if you’re able to successfully market your skills and network effectively, you can make a sizable amount of money as a freelancer.

• #2. Trade and Invest Money: If you’re in the market for a passive income stream and have some knowledge of the financial markets, you may want to consider trading and investing your hard-earned cash. The practice of forex trading is particularly effective for retail traders, who can capitalise on increased leverage while speculating on price movements and profit without assuming ownership of the underlying financial instrument.

• #3. Selling and Dropshipping: Ever since the turn of the century, people have been able to sell unwanted and bespoke items online for a profit through sites such as Amazon and eBay. This market has evolved since, however, with dropshipping enabling you to buy in-demand products at their wholesale price before selling these on at retail value. You’ll then realise the difference between these two prices as profit, with high volumes capable of delivering significant returns.