When it comes to investments everyone says that you need to diversify to protect yourself. If you invest everything into one stock and it crashes all of your investment goes along with it. Having one source of income is very similar. If all of your income comes from one job you’re at much greater financial risk if you happen to lose it or worse it becomes something you loath.
Personally I have worked for companies that have reorganized leaving me without a job and I have worked for companies that simply ran out of money forcing them out of business again leaving me without a job. The reality is when you make all of your money from one source you’re at great risk if you happen to lose it. There is little in the way of security when you only have one source of income.
Companies always try to have as many customers as possible, not only are they trying to ensure they make a profit but they are also ensuring that they stay in business if any one of their customers decides to leave. The reality is you can’t count on one source of income permanently.
The goal is to set up multiple sources of income for yourself to keep yourself protected. This isn’t always an easy thing to set up but even investing money in mutual funds that pay dividends can be turned into having multiple sources of income. Now that I am going to actively try increasing my income rather than just relying on cutting costs multiple income sources will be something that I am going to focus on. In some ways I’m already doing it but at a very small scale.
For most people they’ve only ever known how to make money from one source of income learning to add more to this is crucial to not being tied to your job. There are some simple ways of adding extra sources of income and I’ll start posting some of these ideas and my experiences if I have any with them (yes I’m going to be trying a few of them).