10 Reasons You Need To Have Multiple Streams Of Income
If you want to be a millionaire you have to think like one and having multiple streams of income is a big determining factor in how successful you are financially. Don’t worry, if you don’t want to be a millionaire but, just want financial security this post is still for you!
I am a huge believer in the need to have multiple streams of income. There’s no denying you need to have multiple streams of income in order to build and sustain wealth.
We all get the same 24 hours in a day and if we spend them working for money instead of setting our life up for our money to work for us we are never going to become financially successful or better yet financially secure.
So, without further ado – 10 Reasons You Need To Have Multiple Streams Of Income
Multiple streams of income increase your financial security. If you have a job that covers your monthly bills adding streams of income will allow you to save and invest more money. Does having a nest egg or an emergency fund sound appealing? Heck yes!
Multiple streams of income allow you to have the extra money in the bank just in case you need it. It can be used in a life happens situation or just be saved for your future.
2. Helps Pay Down Debt
Paying off credit cards, your car or even your mortgage is empowering. Using multiple streams of income to pay down your debt saves you thousands of dollars in interest on loans and puts you on the path to financial freedom. Once your debt is paid off you’ll still have multiple streams of income on top of not having monthly loan payments and all of that money can be directed to saving and investing.
3. Increases Savings
More income can equate to more savings. Having more than one stream can help tackle debt as mentioned above and once the debt is paid down then you can use it to increase your savings. Lack of savings is an epidemic for American’s.
Saving for emergencies is important and saving for retirement is an absolute must. You can’t work forever nor should you want too.
Having multiple streams of income can add to savings accounts and investments. As they grow you can create even more streams of income.
4. Build Long Term Wealth
Not being tied to one source of income is also proven to build long term wealth. We’ve all heard the statistic that the average millionaire has seven streams of income. If one stream suffers you’ve got others to fall back on. If they’re all doing well then you’re making even more money. Multiple streams of income provide diversity.
Thinking and planning for the long term are difficult and takes a ton of work but, the rewards can be a game-changer for long term wealth building.
Job loss can be financially devastating and it can happen to anyone. Having multiple streams of income can make dealing with unemployment a lot easier. Even if your multiple streams of income can’t replace the income you receive from your job they will make it much easier to stay afloat until you’re able to find a new job.
6. Reach Financial Goals Faster
Whether your goal is paying down debt, increasing savings, paying for college or anything else diversifying your income will get you there faster. Think about it as though you’re giving your financial goals a boost. It’s like driving a V8 instead of a V6.
Increased income comes in different forms and one of them is by creating multiple streams of income. Having a budget will also help you reach financial goals faster.
7. Pension Plans Are A Dying Breed
The days of going to work for a company for 30 years and then retiring with a pension plan for the rest of your life are all but gone. Creating multiple income streams for yourself as soon as you possibly can is a great way to then take that money and contribute to your retirement. Doing this will mean years of compound interest and make retirement easier.
The thought of having financial freedom is one that we’ve all had. Many of us don’t take the steps to make that a reality though.
Start small by creating one additional form of income, then another, and another. It takes time and dedication but, even if it’s just as basic as setting up a high-yield savings account the goal is to have multiple streams of income that are making your money work for you.
Speaking of making your money work for you. When you have multiple streams of income you have more money to invest. Money makes more money. Having more discretionary cash allows you to reinvest in what you choose and in turn use your money to make more money. Leverage gets me excited, using the money you earned to make more money over and over again is life-changing.
10. Small Is Easier Than Big
Most of us have one big income producer and if we lost it we’d be screwed. Having multiple small streams of income is easier than creating one big one. Now, that doesn’t mean your small streams won’t grow into big ones – that’s the goal! But, when you’re just starting to create multiple streams of income don’t get hung up on one big thing. Small streams are easy and a great way to dip your toe into the multiple income stream pond. Even if you only make $100 extra per month that’s still enough to change your life.
Diversifying where you are earning income takes hard work, patience, and commitment. If it were easy everyone would do it. It drives me crazy when I read articles about how it happens overnight. Such BS! Master once income and then add another. Even if you just commit to starting a side hustle or online business and work it each night for 1 hour you’re ahead of the crowd. Think about what a small increase in your income could do for your future. You might have to burn the midnight oil but, your future self will thank you for investing your time to achieve financial security.
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