It is important for one to have an additional income stream, if possible, multiple streams of income. This is because of the uncertainties that may be tied to the security of our jobs. Also, money from our primary stream of income may not be sufficient to meet all our needs. Even if our primary income source is able to cater for our needs, it may not be able to keep us financially sufficient in times of economic instability. When we have an additional stream of income, our lives improve greatly, even our standard of living.
WHY GET AN ADDITIONAL STREAM OF INCOME?
Sometimes cutting your budget may not be the best thing to do. You deserve that little luxury from working all the time. To get this ‘little luxury’ e.g. vacation, without running into debts or having great financial burdens, an additional stream of income may be just what you need. Other reasons why you’d need an additional stream of income include:
1. It will diversify your income
You may need to source for an extra stream of income if you are too reliant on one stream of income. This is because there is always a probability you might lose your 9-5 salary-paying job. Even if your primary source of income may not be a salary-paying job, some unforeseen circumstance may arise around your primary income source.
Getting an additional stream of income makes your income diversified. You wouldn’t have to worry about late salary or loss of income completely as you’d have backup.
2. To reach your financial goals
Financial goals are financial targets we hope to achieve over a period of time on investments, savings after spending. When you have an additional stream of income you’ll meet your financial goals over a shorter period of time. In addition to making you meet your financial goals, additional stream(s) of income would make you set higher financial goals.
3. You may be in debts
You may be someone that does not care for luxury or someone who doesn’t spend much. But, how do you intend clearing off your debts (if you are in debts) and still remain financially stable with your primary income? Paying off debts is easier with a higher income and to increase your income, you may want to take on a side job. You may also want to look out for other means of making additional money like passive means. Asides just paying them, additional moneys from extra income stream(s) can help you pay the debts faster
4. It helps in your walk towards financial freedom
The reward for multiple income streams is financial freedom. When you are actively making income from different sources you’d attain financial freedom much sooner than when your source of income is singular, all things being equal.
5. You are wasting time
The fact that you created time to read this profiting article is an indication that you have the time to take on that extra job or create a passive source of income. Many times when asked why we are not doing some more work, we say we do not have the time for it. Truth be told, it always seem like there is no time for more. If you check carefully, you’d find out that, you probably have more time than you think you have. Many of the activities you spend your time on may not be worth your time. They may be time-wasting.
WHAT ADDITIONAL STREAMS OF INCOME CAN I ENGAGE IN?
Apart from your primary salary, which may be your primary source of income, you could also make an additional income via a side hustle, an online business, or hobby business. Or even by investing.
Jobs that bring you additional income are easy to start up, since most of them do not require great capital to start. Sometimes, as little as part of a month’s salary can be used to start up a side job. To do any of these you’d need to create time no matter how little. Learn how to brainstorm for the ideas to increase your income.
HOW CAN YOU FREE UP TIME TO CREATE AN ADDITIONAL INCOME STREAM?
Our primary jobs take out a fraction of our time and after that, we are often left with some spare hours which we normally use for recreation, visitations, entertainment, surfing the net and all. Truth be told, some of these activities are not nearly as important as your financial freedom. They are activities that you can do without. Even avoid.
Below are ways through which you can free up time to create an additional stream of income:
- Plan your time
After you must have been done with the job for the day that brings you your primary income, plan the remaining parts of the day. This way, your time would be properly managed and you can then create time that would be used to take on your side job which you wish to make a side income from.
- Avoid unnecessary distractions
Many of the times we get distracted with our phones and laptops. Try as much as possible to not use all of your spare time to scroll social media or to read mails. People too can also be source of unnecessary distractions. You don’t have to honor every invite or answer every phone call. That spare can be used to generate a side income for you,
- Reduce the activities you are spending your time on
To create more time to make extra income you have to let go of some activities you engage in during your spare time. Also, you have to cut out time you spend on some other activities. For example, you go to socialize with your friends every Fridays and Sunday. You may want to forgo one of those days.
- Always be refreshed
Eat well. Exercise frequently. Take breaks. This way you’d be refreshed and your extra time would be productive
If you genuinely do not have extra time, you can still make an additional income through passive income streams such as investments – wise investments.