Earning a second income can make life easier and more fulfilling for many people. However, there are only so many hours in the day. Starting a second job may not be practical or appealing.

Fortunately, there is more than one way to earn extra income – and not all of them involve working extra hours.

The attractiveness of investing in the stock market

For example, like millions of other people, I own shares in vast, proven blue-chip companies that pay me money simply for owning those shares. These payments are called dividends. They allow me to benefit from the tough work of their business-oriented leaders in their respective fields.

By doing this, I think I could build a significant second income, over time. I wouldn’t even need any money to start.

Savings are modest and regular for investing

Imagine that I had put £5 a day aside from the start. That would have given me over £1,800 a year to invest. If I had decided to utilize the dividends I earned to buy more shares instead of creating cash income (a technique known as compounding), I could have had more to invest.

To start with, I would set up a Stocks and Shares ISA and start depositing £5 a day into it.

Why the long-term approach works

Instead of focusing on a second income now, my plan is to take a long-term approach to investing. That means I wouldn’t expect to have cash to spend from my program (given that I’ll be compounding dividends) for years. So what’s the appeal?

The longer I save, the more money I will have to invest. Furthermore, over time, the impact of my capitalization should augment.

Imagine I invest £5 a day and earn a dividend of 7% each year (this example does not take into account the impact of share price fluctuations, which could work for or against me). After 10 years I should have a portfolio of shares worth over £6,000 and be generating a second income of around £420 a year.

Finding profitable stocks to buy

Although 7% is well above the current average FTSE100 In terms of dividend yield, I think it is achievable in today’s market while sticking to a diversified offering of high-quality blue chip companies.

For example, I own shares in Legal and general information (LSE: LGEN). This stock is yielding well over 7% (in fact it is currently yielding over 8%). The company has planned to raise its dividend per share by 5% this year and 2% per year thereafter.

However, please remember that no dividend is guaranteed and the company may reduce its dividend without notice.

Because Legal & General focuses on pension-related financial services, such as superannuation, I believe the market it serves will remain very vast for the foreseeable future.

With a mighty brand, vast customer base and financial expertise, I expect the FTSE 100 company to be able to continue to deliver mighty profits with its proven business model.

One risk I see is a sudden market drop that will cause clients to withdraw their funds. For now, however, this vast dividend payer continues to support me earn a second income without having to work!