Times are changing. Before, you could start working at a company, climb the corporate ladder, and retire there without ever thinking of any financial problems.
But today, with the ever-increasing prices in just about anything, you are forced to dish out a lot of money; money that you might not have.
In such cases, you would need to have multiple income streams. If you think that your only job is going to feed you, clothe you, and pay your bills your entire life, think again. Below are just some reasons why you need to be thinking of getting multiple income streams.
1. Job Security
Are you secure enough with your job? How sure are you? To be honest, job security has become an issue in recent times. Even huge companies downsize or lay off employees just because their businesses have been underperforming.
Having another income stream allows you to have that confidence in that even though you lose your main job, you still have another source of income.
2. Rising Health Care Costs
As the saying goes, “health is wealth”. We all must have enough cash to spend on health care. Accidents can happen and you might not have enough money to pay it, especially if you only have one source of income.
Having another income stream allows you to have that cushion whenever you have health issues. Hospital and health care costs are on the rise and it would be nice if you have enough money in your coffers.
3. Paying for College
A College education is not cheap. And, even if you have the means of getting a student loan, your child is going to have to pay for it in the future.
If you want to help them fund their college education, a passive income stream will help finance that. You not only get the benefit of getting a salary from your main job, but you will have more money given that you have another income stream.
4. You Can Take Risks
People are afraid to follow their passions because of the risks involved. If you have multiple income streams, you can take such risks and have the money to fund it.
If you’re thinking of baking some goodies or go to art classes to hone your artistic skills, then go for it.
To give you a cushion whenever you want to take risks, having something like a personal loan can help you.
5. Tax Benefits
Did you know that you can enjoy tax benefits whenever you have another source of income? In certain countries such as the US, there are tax cuts that can be enjoyed by self-employed individuals who have sole ownership of the business.
6. Pay Cash for Purchases
A lot of people nowadays use their credit cards to purchase the things that they want. Although that is an acceptable mode of payment, they need to pay a higher interest rate.
Having multiple income streams allow you to earn more cash and therefore, use it to purchase things that you want.
7. Long-term Wealth Creation
Whenever you’re dealing with money, always make it a point to plan for the future. You need to save a lot of money and have enough in your reserves for retirement, emergency funds, etc.
Having multiple sources of income will allow you to generate income for long-term wealth creation.
With the ever-increasing costs of commodities and other services, having only one source of income won’t be enough. Therefore, it is only fitting that you think of another income stream to help you fund your retirement, health care costs, and anything that requires money.