Why Do We Need Multiple Sources Of Income?

in #life2 years ago

I recently got into an argument with a coworker about this. She said that diversifying your income is stupid! This is something I've never heard before! I'm always hearing about how diversifying is important.

Her logic made me a bit angry.

But the same time I understood what she was saying.
I also realized something, that where we are taught to diversify our investments, we are often not told diverse our income. I believe that employers purposely do this. Why would they want you to diversify? When you have two jobs, you're less likely to be more dedicated to that job. Because your time is being consumed by something else. That gives them a lot more control over you.
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Diversifying is important

To an extent, Just don't make my mistake.
I started a coloring book business. I then started a T-shirt business. I then started an e-commerce business. I also had my job. The problem what with this, as I was spreading myself too thin. I had no employees; I had to do all this work myself.

Not only does switching tasks continually waste time. But it was hard for me to build something big out of each opportunity that I had. So in this case, diversifying wasn't helping me very much.

But of course, when you make mistakes, you start to get smarter. I to realize, That the best route to go was my T-shirt business my blog and my e-commerce business. This simplified things a lot more. While overall, It's still a lot. It was manageable. When you diversify, you ensure that no one can have full control over your ability to survive. The problem is we rely too heavily on an employer to pay our bills. Just think about it, upper management doesn't care about you. If you are living paycheck to paycheck. They don't care. Why would you put your livelihood in somebody else's hands?

Put in your own hands and diversify!
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The average millionaire has seven sources of income
This just goes to show how much millionaires diversify. Seven income sources is a lot. But they are probably built up over time. The goal is to get passive income sources, income sources that you don't have to mess with. This allows you to focus on something else. And so on and so forth. This is what I've been doing. While I made the mistake of overloading myself. Making all those coloring books, created something very valuable. Those coloring books, no matter what I do. Will continue to sell. Sure the sales fluctuate and sometimes go down when I don't promote them. But they are still selling. I haven't published a coloring book in over a year. And I'm still generating income every single month from them. Now that I have a new e-commerce business, I can use my new products to help leverage more sells. This gives me a huge advantage.
You are not going to get seven sources of income overnight, but you can slowly make more and more. Focus on creating something that lasts, like an asset. I see all my shirt designs as assets. Anytime a new print on demand company comes out, I can easily throw my designs up. These designs then start selling. And I don't have to do anything except collect the paycheck. Every time I sales go down, I can learn new ways to advertise. These are products already created, And ready to go.

An easier life

Life is hard! We are always chasing something. We are always trying to get closer to our goals, life is so short. And if we don't do everything that we wanted to do, we often will feel unfulfilled. We don't want to wake up one morning and realize we got nowhere we wanted to in life. Diversifying can help that happen. I hate it when people say that money doesn't buy happiness. Because it buys options. It allows you to choose what you want to your life. Diversifying can help your happiness.

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the only answer! hahah

I’m finally back to NY and was thinking about your page. I feel like we do we mistook sources of income just Incase we loose dependence on one. For me steemit is great as long as I’m consistent since I’ve been away, things have slowed down and I may need to do add other sources of income

We have a parachute when we have multiple sources of income. We are able to be more independent and not as vulnerable to the loss of a job. Do not put all your eggs in one basket thought mentality. Great advice.

Exactly! It feels good knowing that if one source falls through most of your bills should be covered if you have multiple sources.

there are few dynamics need to consider before starting diversification : 1. Skill 2. money 3. time 4. scalability of the second source of income . Diversification if done right , is a brilliant way and stats are in line with it. Most of us dont know how to diversify , we do little or no study and we are kind of complacent . Millionaires are rather opposite , so the diversification works for them and for us not so well. I think diversification is subjective skill . Thanks for the content

Having multiple streams of income in today's economy is kind of like a must. I have a friend who was laid of from his job which also doubled as his primary source of income, he was able to live off the proceeds of his other ventures even though they were not as substantial as his former job. The same could not be said for the rest of his peers that were laid off.

Exactly! More and more people are getting laid off. It's really scary.

Passive income is the key to financial independence. Warren Buffett has a great quote along the lines of “Unless you learn how to make money while you sleep, you will work until you die.”
Great article, thanks for posting!

Wow love that quote hehe :)

The best will continue to make money even after they die.

I think a lot of it has to do with age. I'm old enough to remember when "moonlighting" could get you fired lol. But one income is no longer enough and while diversifying can make an employer nervous the rise of the gig economy and now the side hustle are becoming normal. If there is an opportunity then we should take it. There are no guarantees in life and most people have no money to save. I love things like steem. Just reading posts and commenting is a great gig lol.

Right? I Agree Steemit is a great one. It's one of my best personally.
I also see your logic with an employer getting worried. But they also need to understand you need to pay your bills. Hehe. There are so many opportunities these days it's just crazy to try and do all of them.

I know. I'm focused on steemit because right now it's fun. I wonder what will pop up on the horizon?

Yes absolutely ... as many as possible. Here is one I just learned about today. It is called Manna Universal Basic Income

It is based on the idea that if everybody earned a basic living income they could afford to do what they Love with their lives ... paint, make music, scientific research, you name it.... what would you do if you didn't need to worry about Money ???

Very nice post. You clearly understand the benefit of passive income. You're definitely on the right track to be wealthy. Not sure if you read The Millionaire Next Door. You're demonstrating a lot of the concepts shared in the book. It's a really good read if you're interested.

Yes! I read it! It's a wonderful book. I really hope I get there hehe :)

I bet you're cute when you're angry. ;)
It is good to have at least two sources, depending on what you do and how much you make. Especially helpful if something is not performing the best and then you got the extra to help sustain you.

Awww You are so sweet heheh XD I Hope I am lol!
I agree! Two sources helps a lot! It can take time to build up the others hehe.

Hehe you know me! <3
Yes, but once you get some or all sources working well, you start getting a nice, steady stream of income that helps you to live comfortably.

You can diversify your income as long as you can manage them. When you are new and want to do something, focus on one thing. If you are successful on that, then move to another.

As you said, you did a lot of things like starting a coloring book business, t-shirt business, e-commerce business, blog and job. That's a good thing. Sometimes you have to taste what you think you're good at to figure out what you really want to do for the rest of your life.

I really like the advice that you put out in this Post. @kaylinart it is very important to diversify your income. I never really did this when I was a "Cubicle Monkey" in the Corporate World. Now I know between Blogging and eBay and various other endeavors I don't have to rely on that one employer that really did not care about me anyway, nor any other employee.........................

Hi kaylinart,

Wow, sounds like you are mulit-business entrepreneur who is able to build 3 business to divertsify so, you are not relying on only 1 source of income.

Good going...Glad for you. Perhaps, you can blog about how to start and maintain profit in those 3 businesses mentioned above. I would be interested in knowing that.

There is a verse in the Bible - Ecclesiastes 11:2 NASB - Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.

To listen to the audio version of this article click on the play image.

Brought to you by @tts. If you find it useful please consider upvote this reply.

why get angry at stupid people. Education is great, but some are more dense than others.

Hahah True!

Working on jumping into this now, but I've been in school or teaching college level French my entire life. It's time for teaching to take a break, but I'm scared of the real world! I'm building up my courage to try my hand at some other ways to make a living. Nervous but excited! Cheers to you!

I've been thinking the same thing lately! Thank you for putting this in to words. It is very good advice!

This is great advice, not least because when that salary/wage earner retires, they'll need a passive source of income to maximise their retirement savings or they'll just be eating their savings. So, yeah, even if a salary/wage earner then why not get a head start on learning how to build passive income.

Yes! I feel proud of you when I read these words! Now you just need to get those sources of income into a passive state and be able to enjoy your time :-)

Yep, I'm diversifying a bit. I have a part time job for just a few hours a week. I have my art. I have all my prints and art merch, which is in some ways residual income. I have a couple of royalty deals that pay me a bit each month. I've been told for years to do a coloring book though, I haven't done that yet!

when you make mistakes, you start to get smarter,
This line is true !!
Overall your article is impressed me......!!!
Thanks for informative article......!!
Go Ahead @kaylinart

I plan to leave my job soon anyway. But I am finding that as I diversify my income, whether profitably through Uber or potentially through Steemit, my work at my day job is getting worse and becoming more unbearable. I don't think that is a bad thing. It's just showing that the pay is low and the work unfulfilling. I don't want to rely on a single employer. If they don't want me seeking income elsewhere, pay more and make the workplace a more desirable place to be at.

your post is very good
@kaylinart
plis upvote post me thanks

upvote post me thanks

This was such a motivational post. love it, I agree with you, we shouldn't rely on our employer. According to Ian Balina, an average millionaire has 7 sources of income... I have three, but that's the spirit. I would recommend you the book written by Tony Robbins Money Master the game. Did you read it @ kaylinart?

@kaylinart thank you for such inspiration

I agree on that ... I see what I create also my books as a longterm investment towards a passive income and also try to spread to other products as the work is created to begin with ! I think diversifying as you say is the key ... only one has to pace it so it does not become too much at once ! I tend to do too much at once always but during the past 3 years I think I have learned to contain and restrain myself a bit ...hihi ...still working on it but hopefully all the effort and time will one day prove that I was on the right path !

I agree that splitting yourself thin is going to make you a disaster. However its critical to develop more than one source. I remember when I had four jobs and sources of income. I was so tired but if those sources were passive then it would have been better. Basically all your income doesn't have to require your input at all times.

Nice topic . Thanks for share this
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this is so true and really resonated with me. i love hearing some of the background bits about your side business ventures because im approaching a time where im going to launch a few projects and am trying to look towards others like you who have paved the way already. a good friend of mine started posting unique photographs to instagram two years ago, he built up his instagram following a lot and now does art shows selling his photography prints - and actually has done really well! ive started with making the works (they take a lot of time), then editing them further for print quality, and i recently ordered my first three test prints on canvas! it was soooo exciting to get them in the mail and open each one - it felt like Christmas! i still only have 9 in the Handwritten Reveries series Im working on, and only 700 or so followers on Instagram, but I feel like if I keep posting good ones and then maybe gain more traction, then I will start an online store to sell the prints. Sometimes it can feel frustratingly long to make progress and get anywhere in pursuit of these other incomes (especially with art - for me!), but I look back and also feel like I've been producing more and good ideas are flowing and even if it doesnt make money (yet!), thats invaluable to me. So hopefully the side business will take off in the future :) And thanks for sharing about your experiences - it really helps gain insight!

So, why again did your coworker think it was stupid to diversify?

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