5 Reasons Everyone Needs at Least Two Income Sources
If the daily news has taught us anything it is that no one is safe. Job security is evasive, and what we get from our nine-to-fives barely meets our living standards anymore.
That is why most people decide to have two sources of income to put money in the bank. Apart from providing us with some much needed revenue, a second income gives us an outlet to open a business or start an investment either by turning a passion into profit or simply finding a remunerative side hustle to support our lifestyle.
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If you haven’t found an alternative income yet, here are some reasons that may get you interested:
So you can be more prepared by diversifying.
In times of recession, there’s really no way of telling whether you’ll still have your job in a month’s–or even a week’s–time.
There are a number of reasons your boss may lay you off, but at the end of the day the bills you need to settle are your responsibility and yours alone.
Most experts suggest starting a business people can’t live without (i.e. ones that service daily needs). These include things like food, household chores, and housing.
For example, you can capitalize on your cooking skills and put up a neighborhood restaurant meet the local demand for food. In the same manner, you can open a laundry shop and find a commercial washing machine through providers like http://cgilaundry.com/ so that you can help people with their laundry.
Constant demand guarantees longevity, and pursuing business like that people need can give you a low-risk income source and ease some of the pressure at work.
So you can live within your means.
There are only two ways to go about maintaining your lifestyle: either you sacrifice some luxuries to make your income work, or you earn more money so you can keep your lifestyle.
Whichever option we choose, the world will catch up to us either way. You will either run out of things to give up or you will have to keep up with your needs. And so we are expected to adapt.
Having multiple sources of income provides the answer to our unending journey of growth and development and helps us maintain the lifestyles we enjoy.
So you can control your income and time better.
Unlike with a day job, a side hustle gives you space to navigate. You can control your schedule and explore fields that you enjoy–and do all these in your own time. Plus, you can look for clients who are willing to pay good money for your services.
Having multiple sources of income also forces you to manage your time; although you might be putting more total hours in your week, you’ll eventually sharpen your ability to balance your time.
By teaching yourself how to do more, you also put more money in your hours.
All this additional income has to go somewhere and what better place to put it than your very own business. Imagine being able to get better kitchenware for your restaurant or upgrading your laundry business with coin operated washers from Continental Girbau.
The logic is sound: work more to earn more now so you can work less and relax in the future.
So you can increase your savings.
This one speaks for itself. The more you earn, the more you can save.
Tom Corley, an authority on wealth creation, cites that self-made millionaires always have multiple sources of income. Because of this, they are able to earn more keep more for themselves.
Having an alternative source of income will give you money your primary job cant. To help you get started, set aside money for investment, take some classes, or just grab a book for new perspective.
If you aren’t too eager to put your money into a business or side hustle, you can always save for later. You could start a college fund for your kids or simply set aside some cash for emergencies.
You don’t really need to decide where your money goes right now, but it certainly feels nice to have some money to decide with.
So you can be smarter and more resourceful.
Rich Dad, Poor Dad author Robert Kiyosaki tells us that one of the keys to financial freedom is constant education.
Just because you have an established side job doesn’t mean you should stop there. You need to keep acquiring new skills and pushing yourself forward–even if you’re already your own boss.
Learning never stops.
There are hundreds of reasons you should find an alternative income and these are only a few of them. The fact remains the same: life is unpredictable. A second income gives us a second umbrella to protect us from the rainy days.