This is Why You Need Multiple Income Streams

By Beatrice Santos on December 1, 2017

Every day, you work hard to earn money to live. But what would you do if you didn’t have to worry about having enough money to pay for your expenses?

Financial freedom is the freedom to make decisions about your life without worrying about money. Financial freedom may look different for you and me — working from home, traveling the world, spending more time with family and friends — but there are things we can all do to get there sooner.

If you want to achieve financial freedom faster, you need to create multiple income streams, especially passive income streams. Research has shown that most self-made millionaires have at least three or more sources of income. They’re obviously doing something right so we should learn from them!

Multiple Income Streams Decrease Your Financial Risks

Relying on a job as your single source of income is dangerous. Even if you currently have a great job in a stable field, you never know when you may lose your job. People lose their jobs from one week to another because of circumstances they can’t control. That’s why diversifying your income is so important.

Multiple streams of income, especially when they’re scattered across different fields, can help you mitigate the financial burdens of losing your job. They’ll allow you to pay for your basic expenses until you get back on your feet. Or you can turn your side income into a full-time job.

The extra money can also lessen the impact of other financial emergencies such as an injury, an illness, unexpected car repairs or unexpected house repairs.

Multiple Income Streams Broaden Your Choices

Financial freedom isn’t just about having enough money to live. It means that you can do whatever you want with your money and time.

Earning more money would mean you could:

Put more towards retirement, retire earlier or enjoy a more comfortable retirement
Save to pay for your children’s college
Pay off debt faster and pay less interest
Save to pay for discretionary expenses (holiday or birthday presents, vacations, hobbies, etc.)
Upgrade your current lifestyle

Creating Multiple Income Streams

You can create an extra income stream based on your existing skills or you can turn your hobby into a new business. But if you want to make your money work hard for you instead of working hard for your money, you should focus on creating passive income over active income.

Active income streams still decrease your financial risks and boost your cash flow, but they require a lot more work.

Passive Income Is Your Fast Track to Financial Freedom

Passive income is making money without putting in any significant effort or time. You’ll still have to do a lot of work to set up a passive income stream at the start. But it’ll need minimal maintenance and you’ll get a consistent flow of money each month. The freedom and flexibility you’ll enjoy in your life makes it ideal.

You can create a passive income stream by investing either money or time. If you have a significant amount money you can invest on:

Real estate rental properties
Peer-to-peer lending
Becoming a silent investment partner

If you don’t have much money, you’ll have to put in a lot of time and energy into building a business by:

Affiliate marketing on your blog
Creating digital courses
Producing YouTube videos
Developing an app
Writing books or songs to collect royalties

Multiple income streams grant financial independence, control over your life and peace of mind. The sooner you start, the sooner you’ll savor the benefits. Start today!

Bio of the author:

Ahmad is a young, ambitious blogger who loves helping people start different types of businesses. On his blog, Bengu you’ll find ultimate guides to starting various types of businesses as well as exlusive tips and tricks to get ahead in the field of entrepreneurship.

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Beatrice Santos

Beatrice Santos is taking up units in business law and currently affiliated as an intern in a local law firm. She is passionate in helping those who have any queries regarding business laws and how these may affect their respective businesses.