Advantages to having multiple income streams

Many of us have one source of income during our adult lives: our job. If we were to lose our job, the source of our money dries up.

It is essential to have multiple income streams, especially considering the troubled financial environment that exists today. The realities of the financial crisis can struck you when you least expect it. It’s too risky to rely on one source of income, especially when most employers do not hesitate to cut jobs to make their numbers look good.

No matter what situation you find yourself in, having another source of income to rely upon is a good way to secure your finances. If something ever happens and a source of income dries up, you’ll know you have others to fall back on. Having that peace of mind is worth it.

Here are reasons why you need another income stream:

Extra Income –  If you were a business owner, you would want multiple clients so that if one major client decided not to use your services, there would be enough others to keep your business going. In the same way it is better if you develop multiple streams of income to cushion the blow of losing your job or some other significant source of income.

Cash To Back You Up  – There’s no such thing as job security. So, having several side jobs in addition to a full time job provides alternative employment. One of these side jobs can become full time job in the unfortunate event of losing your day job.

Achieve Financial Goals - Even if your job situation is as stable as can be, and you don’t plan on leaving, having another source of income can help accelerate your financial goals. With multiple sources of supplemental income, you can meet your financial freedom goals more quickly and be prepared for unplanned financial challenges.

Financial Freedom - Money is not everything, but it does play a very important role in your life. With multiple sources of income, you are able to be in control of your financial freedom. You will have financial security when you have more than one source of income as opposed to having only one source of income.

If you are planning to look for other sources of income, be careful not to fall prey to the various get- rich -schemes found online, it takes time to accumulate genuine wealth.

You should look for another source of income that will boost your income but not strain you. Day jobs, families and the like also play a part in how much you can dedicate to pursue different income avenues.

Remember, the real goal here is financial independence. By making yourself less dependent on a specific revenue stream (i.e. your primary job), you're giving yourself independence and the flexibility to make choices that you never had before.