Why you need multiple sources of income
The number 1 reason for having multiple sources of income is the your situation is constantly changing. Your situation can change in a split second and you may not see the change coming.
I’ve had many sources of income over the years, as my circumstances changed, so did my income. I usually have 2 jobs at any one time, as there are many hours in a day, I’ve managed to gain experience that I can earn an income from.
These days, developing many sources of income is a lot easier than it used to be. With the internet, you can start many sources of income relatively easily. Some of the sources are Affiliate Marketing, drop shipping, virtual assistant, digital product developer and the list goes on.
Your full time job will be your main source of income, if you enjoy your job, you are one of the lucky ones. Many people only work because they have to, they live for the weekend to enjoy their hobbies or past times. Without multiple sources of income, if your job ends abruptly, say your employer goes bust or they decide they can perform without your help any longer, you are left without an income. This can be very stressful if you don’t have an emergency fund or another source of income until you can find another income source.
Another reason to develop multiple sources of income is that you can start earning a passive income from some sources of income that require little activity on your part.
People living longer is also another reason to source multiple incomes as pensions will no longer be available in the future.
What other sources of income is there
Second job or side hustle
A second part time job can be used to pay down any debts you have, once your debts are paid out. You can invest this extra income to earn a passive income.
Investments are another source of income that can help you over time. Shares and or real estate are the usual forms of investments. These investments can earn you between 5%-10% on your invested money. If you allow compounding to take effect. Your investment will be supercharged over time.
Other investments include precious metals such as gold & silver, start up businesses, part owner of a bricks and mortar business and your own skills.
Online products, such as E books, digital products and courses are popular forms of income these days. Products online are available to your customers 24/7 and will generate income for many years.
I fill out surveys and attend market research studies that pay you for your opinions. These don’t pay much but they do contribute to your income. Some market research companies installing software on your computer and sending you regular payments.
Start a business
Start a part time business. Some years ago I had a commercial cleaning business which I did before I went to my full time job.
The cleaning would be done around 4.30 am and once I finished cleaning I would go to my full time job.
Flipping items can become a significant source of income. Items you can flip are everywhere, from op shop items such as clothes or used items to cars or houses. If you can get an item for 10% less than market value and the sell it for 10% above market value, you can increase your income easily.
Recycling is another source of income that is free to begin as you are collecting things that you take to a recycler and get paid. Aluminium cans are the usual recycle item, but recycling may include flipping items or reusing resources such as pallets. Pallets can be recycled or you can make items from the timber you recycle from old pallets.
Sell your crafts
Crafts can also generate income and maybe a way you can make an income from something you enjoy doing. Handmade crafts or cooking are just 2 ideas that you can use as a source of income, maybe teaching or coaching others can generate income also.
Ok, to summarize, multiple sources of income are essential so we can enjoy our lives with less stress. Not having to worry if we can pay our living expenses is known as financial freedom. With multiple sources of income you find you can dwell on the things you enjoy.
There is no excuse not to develop multiple sources of income.
I hope you can use some of these ideas to generate a few sources of income and reach financial freedom. None of these sources of income occur by thinking about them, you have to put these into action. Get started and work out any issues as you go. You will develop many new skills which you can then use as another source of income.
Another source of income is to set up an online T shirt shop. To find out how easy it is to set up an online T shirt shop, Checkout my post “how to set up an online T shirt shop”