If there’s anything the last decade and even Covid-19 pandemic has taught us, it’s that no job not even clustered businesses are safe. The global economy literary shutdown; the economy takes wild swings beyond anyone’s control, and unfortunately for most people, their only source of income is from their day job. When that reliable job and attendant income disappears, they find themselves in serious financial trouble.
Many working class have or will experience problems working in a traditional labour market setting, whether it’s from a lack of experience, shifting job markets, or the restructuring of a company. Despite these problems, many are still looking at traditional employers as the only way to earn an income.
But, that’s not all that is out there. Learning how to make money online by starting a side hustle, then growing that into a full-time work from home job, is completely attainable in today’s world. If many people and even I can do it, I promise that it’s within your reach.
And, the great news is that present generation, like no other generation, have a huge opportunity to create multiple streams of income by creating work from home jobs that suit their lifestyle. That’s because of two reasons:
- The internet. That’s right, the world wide web has created an obscene amount of opportunities to work from home and has created a significant amount of wealth. All it takes is a little know-how, and the ways to generate income are endless.
- Resourcefulness. This generation more than any other has learned how to use their current resources to solve problems quickly and efficiently. They are not locked into one pathway and aren’t afraid to think outside of the box.
And now, more than ever, having multiple streams of income is bordering on necessity. So, here are 11 reasons why I believe Everyone need to develop as many income streams as possible:
1. Job & Income Security
The norm, until recently, has been getting up early, driving to work, climbing the corporate ladder, and retiring there, while online business or work from home jobs was seen as something relegated to those with less skills. This traditional mindset no longer applies. With emerging technology, companies are being forced to pivot and companies that used to be considered “safe” are being forced to downsize or close altogether.
Just look at what Amazon is doing to the retail landscape. How many notable stores have you noticed announcing layoffs? These are places like Banks, Manufacturing giants, Nordstrom, Best Buy, Macy’s… the list goes on and on.
On the flip side, technology has made it possible to build a viable and secure living from the comfort of your home. While working for a large corporation no longer equates to job security, there are essentially endless opportunities for those wanting to start an online business and work from home.
Because of the diversity of opportunities online, online business owners are able to benefit from low start-up costs to tap into a variety of markets, and all of this means you are able to create any number of work from home opportunities. Each potential job opportunity means a new income stream, and that’s where income security is these days, in diversification.
When you’ve managed to acquire multiple streams of income, your job security isn’t tied to a single source. If the economy changes the revenue of one stream, you can rely on your extra incomes and you can also quickly add or replace that very income source.
Diversification is key whether it’s real estate, rental income, the stock market, or a side business. The more diverse the less risk. The less risk the lower the risk mitigation needs (ie insurance). We’re at that stage where alternative income importance is increasing. I view the income from a day job more and more as a means to acquire alternative income. You have to have multiple streams of income, it’s a necessity to be able to control your own financial destiny. You’ve to get a nice mix of active and passive type of incomes. I don’t think you can go wrong with diversifying your income.
2. Unique & Unlimited opportunities
With all the new opportunities that are being formed around you daily, why not follow your passions and dreams? When thinking about what holds you back, your response is probably that you feel you are tied to a single job or income purely for financial reasons. Relying on one source of income to cover life’s necessities is becoming less and less of a viable option for many.
But if you have several sources of income covering the basic expenses, you’re free to pursue your passions– even if they’re not particularly lucrative. This is one of the greatest benefits of having multiple income streams.
The online world is full of possibilities, and you can create a viable online business and find work from home jobs that utilize your skills and interests. Whether that’s marketing, writing, finance, etc., there is a place for you in the online world.
The other thing about these opportunities is that you can learn how to start an online business while you are still employed at your traditional salary job. It will probably take working late nights and long weekends, but diversifying your income with an online business means you can eventually leave your job to pursue your side hustle even more.
3.They Boost Your Creativity
Having multiple streams of income isn’t all about the money. In fact, sometimes people start a side hustle, small business, or freelance because it’s fun and a creative outlet! If your day job pays well and isn’t terrible, but isn’t fulfilling you and what you want out of your life, create a new stream of income!
You can find a creative outlet that:
- you enjoy,
- earn money from it to pay for the hobby itself, or
- put a little extra in your pocket, and have something to do besides sitting at a desk all day.
4. Ability to stick to your values
More than any other generation in history, this generation is known for sticking to their morals and values.
This generation doesn’t compromise their beliefs for anything.
So when you work for a company or group who might require a compromise, where does that leave you?
You either have to sacrifice your integrity or quit.
The ability to rely on yourself with online business opportunities means that you live life by your own set of morals, terms and values. This means less stress and, ultimately, greater satisfaction.
I would say this is especially true for those choosing to pursue a path that lets them work from home. Work from home jobs allows parents to stay home with their kids, they allow you to travel, and they let you build a business whose integrity is supported by your own moral code.
5. You can take risks at Right Time
The time to take some risks is when you’re younger, and if you’re older and reading this you probably realize how true that statement is. Investing, venturing into your own online business, or changing careers… all gets much harder once you build obligations like a home and family. Failure always looms at the back of an entrepreneur’s mind, but when you’re younger, failure is less likely to have the same types of repercussions they have later in life.
Plus, the more mistakes you make, the more you’ll learn. Better to get that out of the way as soon as possible.
While I will admit that the younger you are, the more opportunities you’ll have to take risks, the reality is that you can take risks at any age. I would never tell someone that they are too old to pursue a side hustle or work from home opportunity. However, you may just have to be more careful with how you start. Fortunately, the internet, again, makes this even easier as you can research and find opportunity in any perspective market.
6. You have the energy
Building some additional income streams and starting an online business takes work and dedication– a lot of it. You must educate yourself and find the motivation to pursue some of those things. The younger you are, the easier it is to do this.
This is partly because you’re less likely to have obligations that take up most of your time, and partly because, let’s face it, you need the energy to build a business.
Starting an online business, take a blog for example, requires an extreme amount of dedication. While you can basically start a blog for free, there are long hours ahead of you. Success with an online business doesn’t come overnight, but the potential is 100% still there.
7. Tax benefits
The tax policy benefits those who receive income from self-employment through work from home jobs and online businesses. This is subject to changes by the government and you should review those details for further information.
When you are ready to start your own online business, it’s important that you are aware and staying on top of changes in tax law– this is one area where hiring a professional can really benefit your online business.
8. Forget Pension: Take Control of Your Future
Gone are the days where you could work 20-35 years at a company or government with the expectation that they would take care of you until you die. Now, you need a retirement plan.
I think this is difficult for many older people to understand in terms of how this generation is dealing with their long-term financial plans. We have student loan debt, the job market has changed, and we have to become more self-reliant when it comes to retirement. These are all reasons why creating multiple streams of income has become even more important.
If you are working for a traditional company, employer contributions to your retirement fund are great, but having multiple income streams will help immensely– especially if you have the desire to retire at your own pace, rather than when your retirement age dictates. Taking control of your future is a much more effective use of your time.
9. Social Security May Not Last
In days past, once you hit a certain age, you could rely on Social Security to help pay the bills. But soon, this may not be the case in most countries. In fact, it’s entirely possible that Social Security will be depleted as early as 2035. Despite this reality, I hear from a lot of people who are expecting that Social Security will still be there for them once they retire.
The financial safety net your grandparents or parents had will probably not be there when you hit retirement age. This is a sad but true reality.
This is all the more reason why having multiple streams of income is so important. Social Security may not last, but the work you put in now with your side hustle or online business has the potential to carry you all the way through retirement.
10. Build Long-term Wealth
It can be difficult to think long-term when you can barely plan for the next week. But the fact is, the work you put in now with your side hustle or online business can have enormous long-term effects and capital gains.
Many of the potential work from home jobs can be sustainable and scalable income generators. These are things you can start on the side of your current job, grow them to the point that you are able to leave your current job, grow them even more once you go full-time with your online business, and work on passive income streams.
Having multiple income streams can help you build long-term wealth without having to work harder. Does it take a considerable amount of effort to get you there? Yes, 100%. I don’t want anyone to quit their job thinking that their work from home side hustle is going to be an immediate success. But, diversification and passive income streams can eventually lead to less work in the future.
You can work smarter and leverage your time to achieve financial freedom earlier. Having freedom from the drudgery of trading your time for money means that you can focus on what’s really important to you– both now and in the future.
11. They are your ticket out debt
Sadly, many are graduating with more debt than any other generation. Student loan debt is reaching new heights, with USA Today reporting that the average Bachelor’s degree is yielding $30,100 worth of debt. Adding graduate school on top of that? Don’t be surprised if your debt is in the six figures. This is leaving many asking the question, “Is a college degree worth it?”
Let’s put that argument aside, though, and talk about how multiple income streams will help you pay down debt. This really isn’t a hard thing to understand– the more money you have coming in means you can pay down your loans faster.
This is why many people are starting side hustles, online businesses, and finding work from home opportunities. That extra income will be your ticket out of debt. If you do have a lot of debt, paying it off is incredibly liberating. It’s also vital to your financial health.
The other thing, once you have that debt paid off, you can invest even more, meaning retirement doesn’t have to be something you work towards for the next 30-40 years.
Final Thoughts On 11 Powerful Reasons for Multiple Streams of Income
Millionaires, on average, have seven streams of income. They’ve learned that diversification and creating multiple streams of income is the key to long-term wealth creation. This, in turn, is the key to achieving what many people dream of: financial freedom.
Not sure how to start? Well, here is the video you must watch. With any online business, though, start as early as you can. Educate yourself and do the work. Achieving financial freedom is very possible, and if you can do it, you can live life on your on your own terms. When it comes to living on your own terms… the sooner the better.
Having options is a big deal, especially when it comes to money. Having multiple streams of income means you can do more with your money and spend less time worrying about it. And that is the ultimate reason why it’s important to have them!
I’m a strong believer in creating multiple streams of income because I have personal experience in realizing the benefits of doing so. For years I only had one with my teaching job, but since I left teaching to create multiple incomes and run this site, I’ve begun to diversify my income by slowly adding more ways to make money. It’s definitely not easy, but even one extra source of income can be a huge boost on your path to financial independence. Enjoy!
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