People today spend an inordinate amount of time educating themselves and getting the right qualifications so that they can have a steady, well-paying job. There’s nothing wrong with this per se but if that’s all you do then you open yourself up to greater risk if things don’t go your way.
You may have heard that it’s not good to put all of your eggs in one basket but that’s what people continue to do by placing all of their hopes for wealth on a single job or income stream. Gone are the days when you can work in a single job for your entire life and retire on a good income.
True financial wealth comes from securing a growing number of income streams.
I say ‘financial wealth’ here and not ‘financial security’ because it’s not just about have the money you need to pay your bills but to have enough income to truly do what you want in life.
Finding that ‘good job’ only provides the illusion of stability. At any point you could be laid off, the company could go under, health issues to prevent you from working, or any of a number of other things could happen to threaten your security. It’s important to think about, and start growing, various income streams to supplement your main income source.
Sources of Income Diversity
Branching Out – If you currently have a job you may consider branching out to offer other services. Tutoring, coaching or some other kind of service can add an extra income stream to the one you have already. This doesn’t necessarily need to be related to your current job. You could sign up for Uber or offer some other kind of service that allows you to work when you want.
Renting – Even if you don’t own an investment property you can still make money by offering one of your rooms for rent. You can do this through sites such as Airbnb. Depending on where you live you may also be able to find websites where you can safely rent your vehicle to others for short periods of time.
Online Marketing – There are a thousand ways to make money online and while it can take time to build up it can turn into a full-time income all by itself. This could involve running your own website, sponsorship through YouTube videos or providing some kind of online service for others. I currently run three websites but I only have advertising on one of the. I’m waiting to build the other two websites up before thinking about adding any advertising to them. The other website earns an extra few hundred per month which is a good start.
Assets – Money makes money. You can use any excess saving to invest, trade or at least move it to a high interest bearing account. Personally I like options trading as it allows me to effectively ‘rent’ out stocks, earning an extra one or two percent on the side each month.
If you’re just starting out and only have a single income stream than start making plans to diversify. As time goes by your income will grow month after month and you’ll be able to diversify further. Don’t rest on your laurels and think everything will be OK. You never know what’s around the corner so start making plans today to achieve the financial success that you deserve.