Do you know the importance of having multiple streams of income?
I have always wondered why financial literacy is never taught in school. Just imagine if calculating money is part of all the Math units we took in school, then perhaps those who hated that subject would’ve had a change of heart.
Unfortunately, we only learn about financial literacy and how to manage expenses through experience. We even manage to go through life with just one source of income and somehow, always wonder why money seems to run out before the next paycheck arrives.
What we fail to realize in our early years is the importance of having multiple streams of income. With only one source income, of course, money will never be enough. Even if we get pay increases, money won’t still be enough because our spending habits also change.
A level up in your lifestyle is also a level up in your spending habit.
I’m not here to talk about your spending habits because those are relative and highly debatable. I’m here to present to you 3 REASONS why you should have multiple streams of income:
1) A room to breathe. You don’t want to live from paycheck to paycheck anymore.
Finally, you came to your senses and realized that you don’t exist just to pay the bills. The debts you have won’t let you have peace of mind so you realized that having an additional stream of income will help ease that financial stress. You were burnt out with having to make ends meet all the time so you just want a room to breath for a change.
If you don’t want the situation you are in now, you always have the power to change it. In this case, if you have too much financial obligations to handle, then all you have to do is find ways to earn extra income on the side while still working on your day job. You just have to be smart and creative with your approach and make it work no matter what.
2) You want to have more money to inflate your current lifestyle, to travel and do things that you love.
Who doesn’t want to have more money? Money still makes the world go round regardless of what people say that money can’t buy happiness.
It’s human nature to want to have more whether to improve your current lifestyle or to be able to do more things that you love. Perhaps you love to travel and what you earn from your day job is not enough to take you to different places. Additional income can definitely provide for that.
Also, having additional stream of income will allow you to take risks so your business idea can finally materialize. It gives you room (and courage) to explore without the worry of money running out.
Just think about poker. If you are winning and have a lot of chips on your side, you are more than willing to make a bet. But if you’re close to losing, you always find yourself folding.
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3) You are striving for financial independence and early retirement.
Financial independence. Something that seems so far-fetched but most people strive for.
Wouldn’t it be nice to travel without sticking to a budget? To go to a shop and not worry about the price? To wine and dine in a fancy restaurant simply because you can afford it? The possibility of it all because you are continuously earning more than you are spending, giving you more than enough personal disposable income for your needs and wants.
And because you have more than enough money, you don’t have to wait until you turn 65 to retire. If done right (and early), heck, you can retire as early as 40!
That is the life. But before you can achieve financial independence, you must first learn how to create multiple streams of income, track and analyze your spending habits, handle your money wisely, and learn the power of having a passive income
Just imagine how life will be like without any financial stress disturbing your peace of mind. Now isn’t that something that money can’t buy?
If you don’t find a way to make money while you sleep, you will work until you die. – Warren Buffett