Good to see you on here… generating multiple streams of income has been something I get a lot of questions about so I decided to put it on here with some ideas and value that can help you thrive and hit your lifestyle goals.
Before we get into it, I think it’s important to tackle the why.
Why do you need to generate multiple streams of income (MSI)?
Whether you are in employment or not, having MSI is the best way to look after yourself and ensure you always can have something to rely on.
Nothing like these times, during the pandemic we are living through, has fortified the concept of MSI. When you lose one source or a source dries up, having others to put food on the table and keep the heating going is crucial for you and your family.
Building multiple streams of income is no longer a luxury, it is a necessity. If these times have taught us anything it is that nobody’s job is safe.
Even when you have a ‘secure job’, having an extra source of income gives you leverage and puts you in a position of power to negotiate for what you deserve not just what you are given and expected to accept.
I’ll add a moral to that story and say don’t wait till it’s too late, start your investment now and grow it in your own pace. Time flies, anyway, let it fly with something that you’ll reap the rewards of.
You might be fortunate in having a spouse bring in an income as well as you, you may think it’s okay if you lose your job but think what would happen if their (and your) only source of income becomes at risk.
To put in a list; this is why you need to develop multiple streams of income for your household:
Financial security for you and your children. Pay their college fund, help them start their own investments in their own future.
Build a saving bank for the bad times, we all know that bad times are a fact of life and you need a cushiony savings account to bank on.
Cover health care cost (not covered by health insurance or health service).
Living within your means? If you find yourself doing that and struggling to cut down on your spending anymore, that’s a clear sign you need to invest in creating another source of income.
Pay your debt. Be mortgage free in 5-10 years rather than in 30-40 years, how does that feel for a weight taken off your chest?
Pay for items in cash and avoid loans and more debt. A large home improvement project? Need a new car? Pay for it in cash because you can and avoid paying interest and having a loan hang over your head for years.
Take control of your income. When was the last time you got a meaningful raise at work? Can you guarantee when you will get another one and how much it would be?
Do yourself a favour and build your financial independence with creating multiple streams of income.
Build a holiday fund. If you are sick and tired of traveling on a budget, digging into your savings or not being able to travel altogether then build a stream of income and dedicate it to go on holidays and adventures. You do live only once after all.
Any good financial advisor will tell you to diversify your investment portfolio, it’s less risky and carries a bigger potential of higher returns. Now I’m not a financial advisor but here’s a crazy thought if the advice is to diversify your investment to avoid risk then why not diversify your streams of income?
I’ve always been a career person. I didn’t quite understand the power of multiple streams of income, why it was important, and how I could generate it.
I was a bit of a skeptic that I could do it while working a full-time demanding job, so I put it on the ‘one day to do list’.
The pandemic hit everyone hard. That has been the biggest wake-up call for so many of us and I decided life is too short to stay on the side-line and went for it. I invested in building a side business and examined the ins and outs of how to generate multiple streams of income.
It has changed my life in so many ways, not only financially.
as you can see from this graph the more your income comes from the green side the more your life will prosper. Make your money work for you instead of you working for it.
Check out this video that explains more about the different types of income.
Here are some ideas on how you can generate MSI in your life:
Investing in property; this is the most obvious and most popular option out there. You will need to develop an eye for a good deal and be willing to put in a chunk of money initially.
You can work it at a smaller scale by renting your spare room or doing an AirBnB arrangement when you’re away.
I’m working on creating an e-book guide to help you with more ideas and how to actually do it, if you’re interested in checking it out when it’s available pop your email down here for me. I’ll get it over to your inbox asap!
I talked in more detail about my journey to entrepreneurship on The UKPAKTV Mind Maps with the amazing host and presenter Sidra Bhatti
Here you can find a blog post on how to juggle a full-time job and a business. Click here
Get in touch if you want to know more details or have any questions about why and how to generate MSI.
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