Having a steady income is important, but in today’s world and shifting job market, a single 9-5 isn’t a good way to be financially stable. Having multiple income streams is very important and can provide an extra cushion in case of emergencies or unexpected bills. Now, more than ever, there are a vast number of opportunities to have multiple streams of income. Working online is an option. There are a lot of ways to make a little money on the side with freelancing your skills or selling things you don’t want anymore. You can even sell things handmade in your free time. If you enjoy sewing or woodworking, you can turn that into a stream of income as well. In an ever-evolving world and job market, there are multiple ways to make money!
But, you might be asking yourself why is having multiple income streams so important? Sure, an extra financial cushion is nice and being able to deal with unexpected emergencies is good, but what are some other reasons? Multiple sources of income will help you in multiple ways.
Outstanding debts will be easier to pay off if you have extra money. Whether it’s a credit card or a mortgage, being able to put extra money towards a monthly payment will help reduce your amount of interest and pay off the loan faster.
It can help protect against unemployment. Job security is an important thing and the unexpected does happen. There might be a layoff or downsizing, and having more than one income stream will help you to cover expenses while you figure out what to do next.
Health care costs are on the rise, so if prescription costs are an issue, extra income will help. It will also help protect you against unexpected medical emergency expenses.
Multiple sources of income also help to create a safety net and extra financial stability. It will allow you to build an emergency fund or a nest egg. If your current job is only paying your bills and allowing you to barely stay afloat, another source of income can help ease that burden. The extra money you make can go into a savings account. Then, when the need arises, you’ll be able to handle the unexpected without worrying over whether you will still be able to pay your everyday bills.