Over the last decade, we have seen the economy taking swift turns that are in not in anyone’s control. Having your 9-5 day job as the only source of income in such an unpredictable system is quite a risky move. After all, no job is safe enough to guarantee you any significant lifelong earnings.
So, let us say that your day job no longer remains the day after tomorrow. In case it is your only source of income, it is likely that you will end up in great financial trouble.
Most of the people, especially the millennials, have encountered work-related problems in a traditional workplace at least a few times. Workplace problems usually arise due to a shift in the job market, a restructure of the company, or often at times, from a lack of significant experience. Yet when it comes to finances, most people continue to barely thrive, solely by relying on an unpredictable traditional 9-5 job.
On the other hand, having multiple income streams takes a great burden of finances off from the table, while placing the person in what we call the ‘safe zone’.
In this article, we aim to enlist some prime benefits of creating multiple income streams. These include:
Until the age of globalization, getting up early for work, and racing up on the corporate ladder until retirement was the norm. Today, however, times have changed. Due to the emergence of better technologies, the companies that remain at the bottom of the competition either end up getting downsized or closed off altogether.
As an example, look at how Amazon has changed the entire retail landscape. It is not common to see many traditional stores getting downsized due to lower revenues being generated. It’s an endless list.
So let’s say that you have successfully created a number of income streams. In this case, you will have money flowing in from multiple sources simultaneously. Even if external factors such as the economy temporarily shuts off one of your income streams, you will still have the remaining income sources to rely on. At least, for a good while.
The creation of multiple income streams gives one an opportunity to follow their dreams and passions. Since relying on the day job as the primary source of income is not viable for most people today, many are investing and building themselves in alternate areas where they had always wished to prosper.
Since there are plenty of great opportunities being formed on a daily basis, it is easier for people to put some part-time effort into areas where they’ve always been passionate to work, hence creating an alternate income stream
Allows you to take risks
An aspiring musician at the age of 30 is not likely to quit his day job, which is also his primary source of money, to pursue music full-time. Taking risks is not a viable option in case you’ve got a family to support while having a single major source of income.
On the other hand, in case you’ve got plenty of income streams, you will be in a better position to take risks.
Let us say that you’ve finally decided to let your entrepreneurial spirit flow. Making mistakes, especially when starting out is going to be inevitable. However, you can only afford to make mistakes when there are plenty of financial resources at the back end.
They will help in paying off the loans
Today, millennials graduate with debt that is way higher than other generations. At average, a bachelor’s degree results in a debt of around $30100 in the United States. In a situation like this, many people wonder whether it is even necessary to have a college degree. Although, the importance of college education cannot really be disregarded.
Anyhow, having multiple income streams can solve your debt issues and loans to a great extent. This would not be a hard concept to understand - the greater the money flowing in, the faster you will be able to pay off your loans and debts.