Why Do We Need Multiple Sources Of Income?
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.
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!
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.