You are probably aware of the many benefits of having multiple income streams. You want to have cash available at all times, even when one is dry. You want to be in a position where you can create stability in your life and in the lives of those who depend on you financially. This is why it’s important for everyone to consider investing in multiple streams of income throughout their lives.
Here are eight benefits of having multiple income streams:
1. They provide more money options
As per Paul Haarman having different types of income allows you to increase your earning power by having more ways to make money. One type of stream may be slow but steady while another may require less effort but bring in more money. If you’re unemployed, having multiple streams can help you increase your earning power when looking for work or preparing to make a career change.
2. They allow you to save more money
Having several different types of income gives you the chance to save at least some money from each stream. When one stream dries up, which is inevitable during certain seasons in your life and in your business, this prevents total financial disaster and allows you to tap into another source of income until times get better.
3. They provide variety in your routine and in how you spend your time
Having different sources of income helps give meaning and purpose to everything that comes your way every day because it provides variety in both what you do and how you spend your time. It keeps life interesting and makes everyday a little different from the last one.
4. They improve your ability to negotiate with others
Having more sources of income gives you a stronger position in negotiations because it allows you to walk away from an agreement if what’s being offered isn’t going to work for you. Having options helps prevent putting yourself into a corner that limits future possibilities as well.
5. They can provide financial stability during difficult times
If you have multiple streams of income, at least some of those will always be coming in no matter what is happening around you or within your business now or down the road. Even if one stream dries up completely, there are still others that can help you pay the bills and even continue to grow your bottom line.
6. They provide a backup plan if one stream fails or is disrupted
If you rely on only one source of income, whether it is from your job or your business, and something happens where the money stops coming in for some reason, you could be facing financial disaster and even bankruptcy unless you have some other source of income that allows you not to go into panic mode immediately. Having multiple sources of income helps keep that from ever happening as it provides another option when times get bad either because your business isn’t doing well for example or because there’s a downturn in the economy where you live.
7. They make managing your money easier
Having only one type of income makes it difficult to manage your money since you can’t always predict when it will be coming in when doing monthly or quarterly budgets. With multiple streams of income, you’re able to smooth out the peaks and valleys that come with a single source of income. This makes it easier to accurately plan for the future and allows you to save more because there are times when extra money is available that may never have been had there not been other sources helping out.
8. You become less reliant on just one career or job
The traditional mentality has been that you need a good education followed by working 40-50 years at one company until retirement. But this’d how everyone wants things to go. Having multiple sources of income makes it easier and more likely to continue making the same amount of money you’re currently getting or even increasing your earning power as you can do things like take on a second career later in life, work part-time elsewhere before and after retirement, etc.
Having multiple sources of income is an extremely wise financial move. It can improve your financial outlook quite dramatically, allow you to always have some money coming in no matter what other things are happening in your life or business, prevent any one problem from resulting in a total loss of income, give you the ability to save more because there are times when there isn’t as much, help you create more options since it opens up both how you spend your time and future possibilities for making money. The list goes on and on about why having several streams of income is better financially than just one or two says Paul Haarman.