Many people especially youngsters are not financially stable and have a lot of savings. Why? They only have one source of income – their daily job. Having a multiple sources of income is vital to protect your financial means.
Do you have only one income stream?
Are you struggle to earn a living?
You don’t have savings?
If the answers spell ‘yes’ to you, then you need to change. Help yourself. Be the catalyst for your financial goals.
People these days don’t think about having more than one income stream because with this current economy, the unemployment rate is skyrocketing and to be honest, we are more than just being lucky to land any job – especially fresh graduates.
However, to even think that you could sustain yourself, and your family and have financial freedom at the same time – simply unrealistic. So, here’s why you need more than one income and ways to create it.
1. Backup Plan
Eerie isn’t it?
But what if you get fired?
Or your company bankrupt?
Urgent sum needed for your family for financial matters?
Or You’re no longer fit into the company… can you survive being broke for MONTHS?
The thing is, a job loss or replacement could happen to ANYONE, even to most stable jobs. There is no such thing as job security, our skills could be replaced by technology, or by someone that is younger, faster and cheaper.
We are so tangled up in our comfort zone, we don’t think that anything could happen to the situations. Well, we refuse to. We are just waiting for our monthly salary, spend it and trying to survive until another paycheck comes in – a cycle.
Well, there’s nothing wrong with this cycle, is just that what will happen if your steady income disappears?
My point is, you should always be prepared for any possibilities. Prepare a backup plan. Prepare a lot of backup plans so that if you have your side income, even with a job loss, you could still manage to sustain your living.
2. Reach your financial goals faster
It’s tiring isn’t, stretching your budget more than it should just to make everything works. Sometimes, an extra a few hundreds more is all you need right?
For example, let say one of your goals is to have financial freedom, free from all crippling debts, it can be settled using your other income without the needs to use your main income stream. Your main income could go towards your retirement savings, insurance or buying a new property.
The best part is, you could accelerate ALL OF YOUR GOALS if you have more than your monthly income.
The point is, by earning more, you are moving towards your goals faster and finally, a reality.
3. More savings To Invest
“How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case” – Robert G. Allen, author of Creating Wealth
Think about this. Your savings could be one of your source of income.
The more income you have, the more savings you could produce. With the savings that you have, you could generate more wealth. How? By using one of your savings to invest.
With more income streams you have, there’s a chance you could leave one of your savings accounts untouched! No matter how the economy is doing, you can get through it and still survive.
This is how you can start to create multiple sources of income
No. Creating multiple sources of income doesn’t mean that you need to work different jobs. Please, brush that mindset off from your head.
Ideally, having multiple sources of income means that you have passive income and will continue to create more passive income along the way until these side incomes surpass your daily job – when that happen, you’ll not working for money anymore.
There are so many opportunities for side incomes, it all depends on how much hard work, effort and commitment you are willing to sacrifice for. Here are a few passive income ideas for you
- Investment in property
- Investment in stocks
- Become a freelancer
And the list goes on and on.
Start taking action today. Decide to explore and build your next income generating asset. Not by just having more job, but by learning how to leverage your time to create wealth.
At the same time, why not comment below and let us know what do you think about this article?