We all want more money to live our dreams. Whether you are doing a job or have your own venture, everyone is working hard to earn as much as possible. Imagine if you may have to face rough time financially and you are not ready for that. It is very important to be ready for rainy days. You should have Multiple Income Stream. But this may not apply for the 5% of the population on the earth who are wealthy enough to survive during such rough time. These people are:
- Already Financially independent
- Spouse is earning full time
- Job requires security clearance – high barrier entry (less competition)
In a nutshell, I think that the only situation where a new income stream may not be an excellent plan is that if you’re already powerfully financially freelance and wish to use some time in ways in which don’t generate revenue, like volunteering or working on personal growth projects. That’s not to say that people who are not financially independent should avoid such things, but that there is an underlying financial pressure for them to look at income-producing side projects first.
Here’s my reasoning behind that.
Saving for retirement: We can not work for the whole life, there will be a time when our source of income is depleting and to survive/maintain our lifestyle we need money. This is when your previously saved money will help you to live your life without continue to work for money. Some extra bucks at the early age you saved to help you in the later age.
We all do savings, the ultimate goal of the savings is to be financially independent when you retire. Your savings will ensure that when you retire you have sufficient money to live. A person may not directly excluding retirement and nonetheless still reach this by doing things like shopping for a required replacement automobile while not a loan. With the additional income, you can achieve this without compromising on the current lifestyle. There are two ways of saving, a) earning more b) saving more. You have to decide which one you want to pick.
Jobs are not secure as it used to be earlier. This generation wants everything quickly and easily. Competition has increased ten folds as compare to our dad’s generation. You never know when your so-called White collar job is gone with a one month notice. Pink slips and golden handshake words are not there before ten years. An alternate source of income will surely help you at this juncture.
On the other hand, a person might use additional income to inflate current lifestyle. That means a higher standard of living. This also means that sustaining higher life standards requires more money. So your retirement plan may get affected. You need to ensure that your retirement plan should get delayed due to a higher standard of living. Additional income will help you to plan your savings and upgrade your living life standard.
Second income will help you to enable other life goals. Life isn’t all about the money. A person might decide that their current lucrative career isn’t something they want to continue devoting their life to, so they may want to change careers. A person might even transition to working on one of those side income streams on a full-time basis.
It helps you to live your dream. If you have some skills but not getting time to develop that skill to monetize it for you. It serves as an insurance against the things that might create challenges outside your career path. It encourages you to do what you want as a part of their life. It also helps you to polish your skills and meet new connections with the people. I feel that doing your hobby is far beyond the money you earn.
I recommend you to do a hobby-side income even if you have a secure job. Career security doesn’t address many of the key benefits of having a side income. So don’t let your career security convince you that you don’t need an alternative source of income.
What is your take on alternative income source? Let’s discuss…