7 Reasons You Should Have Multiple Streams of Income

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Having multiple streams of income can make your life less financially stressful and help you reach your goals faster.It’s no secret that the cost of living is constantly on the rise. Unfortunately that increase hasn’t transferred to our salaries or income. In fact, many jobs pay the equivalent of what they did years ago.

These factors combined have made living on one income increasingly difficult. For many, the necessities alone take up most if not all of their monthly paycheck. Moreover, take into account the fact that thanks to technology some jobs are becoming obsolete, and time could find some of us without an income at all.

The economy and job market are unpredictable and you never know when you might need a backup plan. Ergo, having one source of cash flow might not be as feasible or beneficial as it once was. Having multiple streams of income can benefit you more than you know, here are seven reasons you should add another one or two to your life.

1. Security

As the world changes so does the job market. Jobs once in high-demand have fallen to the wayside or decreased in number. Unfortunately, even in the best of times there’s no guarantee that your job is safe.

Have you ever asked yourself what you’d do if you lost your job tomorrow? Even an emergency fund only lasts so long and job hunting can more often than not take longer than anticipated. If you have multiple streams of income, however, your job security is increased because you’re not tied to any one income.

2. Eliminate Debt Quicker

Between the exorbitant cost of higher education and credit card debt, most people have debt of some sort. Depending on the amount, paying off said debt is often easier said than done.

The amount you contribute to your debt can sometimes feel like you’re merely chipping away at the mountain. One salary doesn’t always provide you with enough surplus to make much of a dent in your debt.

Multiple income streams, on the other hand, will likely provide you with enough money to cover the necessities and then some. Hence, you’ll be able to put more money towards your debt each time you pay your bill and in the end eliminate it quicker.

3. Save More

As mentioned, one income doesn’t always allot enough cash for all of your wants and needs. After all your expenses the amount you put towards savings and investments can seem like a minuscule amount. That being said, the more you can save now, the better so that your money can accumulate interest and grow.

Multiple streams of income allow you to pay for your basic monthly expenses with a surplus left over. In fact, you could even commit an entire income from one of your multiple incomes to savings alone. By doing so, you’ll save more now and ensure you’re all set for the future.

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4. Pay for Health Care

When it comes to rising living costs, one sector in particular has become especially expensive, health care. Many companies aren’t paying as much for employee health care making you pay more out of pocket; have a family or spouse on your plan and you’ll spend even more.

Furthermore, insurance itself doesn’t seem to cover as many medical expenses as it once did. Co-pays are higher, procedures more expensive, and surgeries or hospital stays can put you behind on bills quickly.

Having extra streams of income can help you take care of the costs for your health care on a regular basis and keep you covered should an emergency arise.

5. Pay in Cash

There are certain items in life, like cars, houses, furniture, and appliances, that generally, are simply too expensive to pay for all at once. In most cases, you’re forced to take out a loan, adhere to payment plans, or put the purchase on a credit card.

While there’s nothing wrong with going that route, it does have the potential to cost you more with accrued interest and overall take longer to pay off. Multiple sources of income, however, would give you the ability to save up more money, more quickly. It may even enable you to pay for even the larger purchases with cash upfront.

6. Control Your Own Income

If you’ve ever petitioned for a raise or awaited a yearly bonus, you know that there’s only so much you can control in the situation. Sometimes, the situation arises where no matter how much you deserve said raise or bonus, the funds simply aren’t there, leaving you out of luck until the coming year or when business picks back up.

Not having to rely on one salary gives you more control over what you take home each year, and should you want or need a little more, you can add another revenue stream or search for ways to grow one you already have.

7. Find New Opportunities

When you work a job day in and day out getting stuck in a rut is easy. Even if you love your job, there will inevitably be times when you get bored or when it feels lackluster. Having multiple jobs, however, provides you with the opportunity to do something different every now and then. It may allow you to utilize your passion or skills you don’t at your regular position.

Moreover, working more than one job opens you up to be able to try new things, learn new skills, and network with people you may have never met. Overall, multiple revenue streams could lead to not only an influx of income, but to a career path you never thought possible.

Summary

You might feel as though one job is more than enough, and while that could be true for some, too often, one salary just doesn’t provide enough for all your expenses. That said, having multiple incomes doesn’t mean you have to work three full-time jobs or work yourself to the bone.

There’s an array of flexible and creative ways to earn extra income or start a side hustle. At the end of the day, multiple streams of income can provide you with the opportunity to reach some of those financial goals and eliminate some of your financial stress.

Do you have multiple streams of income? If so, what does that look like and how do you manage your income?

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