As the cost of living continues to rise, it requires an ever increasing amount of money to meet the cost of daily living expenses. Sometimes not one, or even two, sources of income can cover all the costs. Not only does multiple streams of income help fill this need; it can also provide backup support if another source of income dries up.
Cuts The Risk Of Lost Income
Living with only one source of revenue can be risky, especially in the volatile market of today where the unexpected is not so unusual. When Google implemented Panda in 2011 for example, many entrepreneurs that enjoyed healthy profits from their high ranking websites were shocked when their rankings suddenly plummeted along with their earnings. Incomes dried up almost overnight.
Having another source of income will cut the risk of finding yourself suddenly financially high and dry if something unexpected happens. This is particularly the case for entrepreneurs that should have one additional source of income at minimum.
Helps Prepare For The Unexpected
In the past years, healthcare has continued to rise at an astonishing rate and will continue to do so. Even with the best of insurance coverage, there will be out of pocket for costs should there be a medical emergency for yourself or your family. Multiple streams of income can provide the funds you will need for such an emergency. This income can also provide for other things such as a dental emergency or visits to a veterinary hospital if a pet is critically injured or ill.
If your teenager accidentally crashes the family car into the side of the garage and the HVAC unit suddenly dies in the middle of an August heat wave you will have the needed money to fix the garage and the HVAC. Knowing you will be able to handle the financial unexpected will give you a lot of peace of mind over the years.
Pays For Children’s Education
Multiple streams of income can pay for college or other types of education, such as a private school or special tutoring. If your child desires to attend an exclusive college in another state or is working diligently toward an expensive degree, alternate streams of income can help make these dreams a reality.
Paying Off Personal Debt
Having more than one stream of income can help keep credit card bills at bay and avoid any interest fees accrued by using those cards. Having an extra cash flow can also allow you to pay cash for your purchases. When you pay cash for a large ticket item, like a car, for example, you have more power to negotiate a better deal and save even more money.
Extra Money Means More Options
Extra money means you will be able to take the vacation of your dreams. Your family can enjoy better clothing, housing, entertainment. The list goes on and on!
Multiple streams of income can take many forms. Investing in real estate, flipping foreclosures, building a stock portfolio, or becoming an infopreneur on the Internet. There are many ways to create that extra income and the life benefits are tremendous.
“Remember, wealth has nothing to do with money, success has everything to do with failure, and life is as simple as you make it!” – John Dessauer