Having multiple streams of income, or side-hustles has been a hot topic among bloggers lately. However, this concept is not new.
Wealthy people have been using this strategy of income diversification to maintain elite financial status and grow more wealth for ages.
For example, a millionaire might have money coming in from:
- Earned Income – money earned for doing your job (your salary).
- Interest Income – money made from lending to others
- Capital Gain – a payment from an increase in capital assets (investments, real estate)
- Rental Income – income from renting out property (residential or commercial)
- Dividend Income – the portion of profits paid out to you from a company to you, as a shareholder
Today (more than ever) it’s imperative that the working class also adopt the strategy of multiple sources of income to usher in their own financial success.
Why You Need Multiple Sources of Income
Having more than one sources of income gives you more control over your finances.
For instance, if you get fired from your job today, that income stops. If that was your only source of income, tough luck. Now you have to scramble — you’re not in control.
Chances are, you might have to dip into your emergency account (if you have one). Or let the bills pile up while you search for another job. Either way, the problem is far more than just the money at this point.
Now you have to deal with your emotions and other negative health issues loosing a job my trigger. As a breadwinner, it puts a strain on you.
Because not only are you not able to meet your financial goals for financial independence, but you can’t even provide for your basic needs, like food and shelter.
Even after landing a job, you’ll have to play catch up with unpaid bills and refilling your emergency account.
The fact is, having multiple streams of income is no longer a luxury reserved for the wealthy, it’s a necessary financial strategy for the working class.
4 Ways Multiple Streams of Incomes can Propel You Forth Even in a Bad Economy
Here are four ways multiple streams of income can help you enjoy life in the midst of an economic volatility, and even propel you toward your goals with exponential speed.
1. Diversified income gives you options
More than anything else, having multiple income gives you options. By acting as a cushion, it allows you to be more aggressive in finding better opportunities to achieve your goals faster.
2. Multiple streams of income establishes risk mitigation for your income
Possibly the most overlooked benefit of having more thane one income is risk mitigation. Even a little side-hustle, generating a few hundred bucks a month, will provide a measure of protection. It’ll protects you from setbacks on your journey financially journey, and can buy yo more time to land a better job.
3. Having variety of income enables you to expand your skill sets
Millennials are one of the most educated generations to walk the earth. Thus many are under-paid and over-qualified for their positions, which makes competition fierce.
To give you an edge, you must diversify your skill sets. Because to settle on just one skill set minimizes your earning potential. Having multiple streams of income allow you to testing different avenues to diversify your income, and an opportunity to learn new skills to excel in a new role.
4. Having more than one income expedites your journey to financial freedom
In author Thomas C. Corley’s five-year study of self-made millionaires, he found that many of them develop multiple streams of income: 65% had three streams, 45% had four streams, and 29% had five or more streams.
– Business Insiders
We live in a time of uncertainty. With an economy that fluctuates like the emotional state of a five-year old, you can’t count on your job passed this year, let alone retirement.
To create wealth, you need a consistent flow of income. A single paycheck from a job is not sufficient for providing stability longterm. There are too many variables to guarantee a consistent inflow. You may not have that job tomorrow.
“The masses almost guarantee themselves a life of financial mediocrity by staying in a job with a modest salary and yearly pay raises.”
-Steve Siebold, author of “How Rich People Think”
The fact is, a day job is designed to enslave you for 40+ years without guaranteeing financial security. However, many of us can’t afford that.
Personally, destiny is calling and purpose is ringing in my ears. My soul is crying “dissatisfied.”
Diversify your income. Leverage its benefits to create a life of freedom–freedom to pursue your passion and purpose. Create the life you’re created to live.
How to position yourself Practically to DiversifyYour Income
The advantage is clear. You can benefit from multiple sources of income. But, how do you make it happen practically? Unfortunately, that question cannot be answered in a small section of an article.
However, there are two simple and practical actions you can take today to get you started on your journey to multiple income streams.
1. Manage what you do have.
First start with what you have. If you can effectively manage the money you have now, you can position yourself for income diversification.
For instance, paying off debt increases your cash flow, which better positions you for a side-hustle or other investment opportunities to 10x you income.
In addition, paying off debts also strengthens your credit; an awesome credit is buying power — a license for investment. Like 70% of the Forbes wealthiest who climbed out of middle class, utilize your credit to add additional stream of income.
2. Invest in yourself and grow.
“YOU are the greatest appreciating asset.” Mustard Seed Money
One of the most beneficial things you can do today to create a desirable future is to invest in yourself.
Studies show that colleges graduates make significantly more in a lifetime than a person without a degree. Why not take this same concept and invest in yourself to monetize your hobbies, passions, and unique skill set and generate income for yourself?
You don’t have to go to college to invest in yourself. Knowledge is all around us. You just have to know where to look.
How to Justify Spending Money on Self Improvement
I get it. It’s hard to justify paying hundreds and thousands of dollars to purchase a training material where it might not be recognize as a standard education.
But it’s all perspective. The number on problem is a whole life we are thought to go to school get a degree and land a job. However, it doesn’t have to be like that.
If you are like the 80% of works who are not satisfied in the a jobs, how much more can you gain by taking say a YouTube training where you get educated to make videos about things you love and care about and monetize it generate income that matches the wage from your job?
Wouldn’t you say your life is better off doing what you love than at a job you don’t feel satisfied, for fill or engaged at?
Untimely, you are not investing to get money, you’re investing to get more of your time back. Your money will always replenish. But your time won’t. Why not spend it on what you love and care about?
You can’t afford not to Have multiple income
Truth is, your too talented and too creative to not tap into those gifting.
Financially it doesn’t make sense because gone are the days when you would work for a company for 50+ years, retire with a decent amount of money in pension. You can take the same approach to your finances as your parents.
It doesn’t make sense for your wellbeing either because you are going to work to die (hopes, dreams, fulfillment). he economy is too flaky to offer that kind of luxury, and pensions are the thing of the past (for millennials, anyway). Not to mention, the government is too debated to hand out benefits (though we’re still paying in).
Create streams of income that can provide you a way out of that job you’re not too fond of so you can pursue your purpose, and live the life you’re created to live. The life of freedom, generosity, and contentment.
A life worth living.
How are you diversifying your income and how did you achieve multiple streams of income? Share your knowledge.