A pep talk for those mulling over the idea of developing alternative streams of income.
How many people do you know who have more than one source of income? The chances are, since the recession, you might know more than a few people who’ve gone entrepreneurial recently (more so now than a few years ago, when most people were focused on the real estate market). I know a few people who have been pretty resourceful and now enjoy more than one stream of income as a result. But not everyone realizes the power of having multiple income streams. Or perhaps, it’s a matter of knowing how to make it work or trusting that this type of endeavor can work.
How I’ve Worked To Develop Multiple Streams of Income
Let me tell you a bit about my experience so you can see how this works. My spouse and I both used to have regular jobs, so we had one income each. It was a pretty good income until my spouse was made redundant –- at which point that income was cut in half. Luckily, we received some good redundancy pay which gave us a cushion for a while, but it was still a shock.
But that event led us to moving and starting our own online business. I do some freelancing and consulting, we have an eBay business and we are also building up our own stable of websites which bring in an income for us. That third income is small at the moment, but we expect it to continue building up over time.
For some people I know, three streams of income are just the tip of the iceberg. In my case, I try to keep tabs with different clients for freelancing jobs, which could help me to minimize the risk of income loss. Having many known clients and paying projects at hand can serve as a cushion. It’s a simple numbers game really –- and that’s where having more than one source of income really makes a difference.
If you have one job and you lose it, you’re down to zero income coming into your household overnight. This is why losing a job –- no matter how it happens -– is so stressful. But if you have a dozen sources of income and you lose one, you can see that it won’t worry you too much. Sure, you would still look to replace that lost income in some way, but it won’t provide you with an immediate cause to panic.
And I look at my clients in much the same way. If I lost one of them for some reason, it wouldn’t unduly worry me. And since I constantly look for new business anyway, I know I am being proactive in maintaining and protecting the income I already have. This is also where I point out that having an emergency fund in a top online savings bank or in some other high yielding cash account is a good idea. Just in case you need the cash to tide you over during leaner times.
Of course, there are a myriad ways to make money within and beyond the internet. There are also additional ways to create streams of income beyond the world of business. You can develop new streams just by opening new investing channels for yourself!
Find The Motivation To Build A Business
You may not think that you are in a position to have more than one stream of income. But that’s not true –- not thanks to the internet anyway. Because the truth is, if you have an internet connection, then you have several strategies you can take to start making some extra cash.
Remember that a lot of people get the motivation to work for themselves or develop streams of income due to necessity — perhaps they were laid off or need more money to supplement their lifestyles. But you certainly don’t need to be in a bind before you can get going on this idea! Why not start building an income stream before you actually have to? Of course, we all need just a little more motivation to do this. Be aware though, that there may be some risk involved when trying a new idea out. But no pain, no gain, right?
Don’t automatically assume you have to earn extra money this way though. Explore all the possibilities, and figure out what your best move is from there. In a sense, having several streams of income coming into your household is an insurance policy. It protects you against 100% income loss.
So think about how this method of earning money could affect your life for the better. Many people have succeeded in this endeavor. You can too!
Contributing Writer: Allison W.
Copyright © 2010 The Digerati Life. All Rights Reserved.
{ 6 comments… read them below or add one }
i started a business a few months back and while the income is not so much, it is growing. I would like at some point in time to have a diversified full time income from my business activities. Running a business is also more fulfilling than gainful employment, at least from my experiences anyways
Investing in the stock market is another great way to generate income.
I’m really glad I didn’t quit my day job when I started blogging. After nearly 600 articles and publishing three volumes of my fiction, I’m still not at break even … in spite of positive reviews. Oh well. My day job pays the bills and my writing provides entertainment. And I continue to pedal away in hopes that something takes off (a few more things are in the works).
I think it’s important to MAX OUT your main income and not let a side project distract you from your main potential.
Take things slow!
The old saying “don’t put all your eggs in the same basket” is something we should all strive for. If you have a decent paying full time job than this by all means should be your main focus, but realize it may not last forever. Additional streams of income is a safe bet to ensue you have money in your pocket (and bank account), but finding the time to grow these streams is difficult.
Partially agree with Financial Samurai; unless you’re in perfect love with your job and it completely satisfies you, I would recommend building up a side hobby from which you can generate some income, but you shouldn’t do this at the expense of your main earning potential: it is this primary income which will serve as the seed to boost your passive income in later years.