I’ve pretty much always had multiple streams of income ever since I started working my first job at McDonald’s at age 15. I worked there over the summer between my freshman and sophomore years of high school in addition to working on my parent’s farm and mowing lawns for my grandmas.
I was pretty lucky because my dad did pay me a little bit to help him on the farm when I was a kid. Farm work, along with household chores, was how I earned my “allowance” each week. There were no free money handouts from my parents. (I’m thankful for that now as it helped me develop a good work ethic from a young age.)
My grandmas also paid me to mow their yards during the summer. The funny thing is that one of my grandmas had almost 2 acres and she paid me $20 even though she was pretty well-off, while my other grandma has a much smaller yard and has less money in the bank and she paid me $30.
For years I had multiple streams of income without even thinking about it. It wasn’t until I discovered personal finance blogs in 2013 that I started to learn more about the benefits of having multiple streams of income and that most people outside of the personal finance community don’t have multiple streams of income. I was a rarity!
Now that I know more about why you should have multiple streams of income, I don’t think I will ever go back to having only one. Here’s why:
Job security isn’t what it used to be. In the past, it wasn’t uncommon for people to work at the same place of business for 25-30 years, or more, until they retired. They almost never had to worry about getting laid off due to company financial constraints. Therefore, most of these people also didn’t worry about building multiple streams of income. Times have changed since then and layoffs are more common than they used to be. If you only have one source of income and you lose your job you better have an emergency fund in place to help tide you over until you can find a new job as you won’t have any cash flowing in until then.
By building up multiple streams of income you’ll be able to continue to earn some income and supplement your emergency fund while you look for a new job. This also means you may be able to be more picky about what your next job is instead of having to take the first one you find to get money flowing in again.
Having multiple streams of income is also a great way to reach your financial goals faster. No matter if you are trying to get out of debt, save for retirement, buying a house, or something else entirely, having multiple streams of income will help you reach your goals that much sooner. To get started it is a good idea to get asset based loans that will help you earn more money in the long run.
Choosing a passive income source makes it even easier to build wealth than if your multiple streams of income all take time away from other things your life. For example, owning rental properties will give you a monthly income without much time or effort, while having a part-time job requires you to put in hours each week to bring in that extra money. Therefore choosing a passive income stream is a good idea to help you build wealth.
Do you have multiple streams of income?
Photo courtesy of: Thomas’s Pics