Why You Should Have Many Varied Income Revenue Streams

We’re all familiar with the term, “Don’t put all your eggs in one basket”, right?  It’s a great reminder that nothing in life is 100% secure or concrete.  Anything can change at any point in time, which means that it’s important for us to be prepared if that moment does arrive.  Being prepared for life changes doesn’t mean that one should be fearful or afraid.  Being prepared just means that it’s a good decision to have plans in place in case your circumstances or the circumstances of your family changes.  How does one be prepared for unexpected events that may or may not ever happen?  Great question.  One way to make certain you are prepared is to have many varied income revenue streams.  Side-hustles, hobbies, part-time employment and PRN work are all greatly varied income streams that can add a little bit more security to your family and your financial situation.  While it may sound tiring to think about adding another job on the side, on top of all of the work you already do, it’s still a relevant topic that deserves thinking about.  If you are wondering why one should consider having many varied income revenue streams, there are several reasons to consider giving it a try.

  1. Multiple revenue streams act as a safety net.  Let’s face it…the past few years our economy has had it’s up and downs.  When things are great, they’re great!  BUT, when they are less than stellar, it affects a lot of people and the opportunities and jobs suddenly start to become scarce.  By having multiple income streams, it allows you time if something were to happen to your main income source.  You wouldn’t necessarily go from full-time income to zero income if you have additional revenue streams coming in.
  2. Varied income revenue streams allow you flexibility.  Are you only working your full-time job to wait it out until your side-hustle takes off with hopes of then turning that into your full-time gig?  It’s common that a lot of people actually work this way.  Many people work full-time during the day at their regular employer and then work full-time at night trying to grow their side-hustle to chase after their dream of working for themselves.  While it can take a lot of extra work, it can offer a high reward for securing employment that you run and manage yourself. No more answering to anyone but you sounds nice, right?
  3. Additional income gives you options.  Not only do YOU have options but the people in your house have options as well.  Maybe your varied income generators give your family the option of having one parent be a stay-at-home mom or dad, but without those side-incomes, there wouldn’t be any way that you could afford it.  If your want is to have options for you and your family, varied income streams can give you those options.
  4. You can save for retirement quicker.  If your full-time job pays you more than enough to live off of and pay your bills, then think about how much money you could be investing and saving from the income you are earning off your variable revenue streams.  Even if you were earning only $1,000 per month in extra varied income, that’s an additional $12,000 per year that you could put into your savings account or your retirement fund.  That’s no chump change!  Having an extra $12,000 yearly is a huge sum of money that will help propel you quickly towards being able to retire or pay off debt much earlier than most in life.
  5. Varied streams of income allow you to explore your passions.  Typically, side-hustles that you may be working in addition to your full-time job are things that you actually enjoy doing.  What if you find out that you are extremely passionate about one of your varied income streams, and decide to pursue it full-time?  Without dabbling in it as an additional revenue source in the first place, you never would have known that you had a passion for it.

Having multiple revenue streams for your family is a topic that needs serious consideration.  You shouldn’t feel stressed or pressured to make it happen, but you do need to have a plan in place in case your financial circumstances suddenly change.  List out a few of the things that you like to do, and that you are good at, and see if there is a potential way to earn an additional income from your idea.  Once you start earning in some additional revenue, you may find that you actually feel more relaxed about you and your families financial situation.

Authored by Tom Crowe

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