We live in a pretty amazing time. Technology and the internet have opened up so many doors and connect people from all over the world. While this poses it’s challenges (like being glued to our phones!), it also provides opportunities, like making it even easier to earn multiple streams of income.
If you work full time, you may be wondering why it’s worth trying to earn some extra money. I mean, you’re busy enough with your job. But if you dig a little deeper, you’ll see that everyone can benefit from generating additional streams of revenue. Today we’ll be talking about just that.
Here are four reasons everyone should consider multiple streams of income.
1. It provides financial protection.
As much as we may feel we’re invincible, the truth is that we aren’t. Layoffs, health issues, and other limiting factors can inhibit our earnings or make them unreliable. And even a stable job doesn’t always cover us for unforeseen expenses.
Having multiple streams of income provides a level of financial buffer. It’s another income source if our earnings are less than expected or if an unexpected expense arises. It can also help build an emergency fund. (And that’s something we should all have!) Even an extra $100 per month to set aside for an emergency fund can add up. That’s $1,200 per year which is nothing to scoff at.
2. It helps you reach financial milestones quicker.
Saving up for a bigger TV? Longing for a vacation that you can’t quite afford? An additional stream of income can help you get there faster. While I’d recommend building an emergency fund before starting a savings fund, you can eventually do both!
I recommend opening a secondary bank account for earnings from additional income streams to keep them separate and to avoid spending them. This is exactly what I did with my Etsy shop earnings and it both gave me greater visibility to my income and kept it separate.
And if you want more ideas about how to automate these savings, check out my post about how to save on autopilot.
3. It helps you grow and learn.
In most cases, a secondary stream of income will involve different work than your day job. It may involve monetizing a hobby, getting paid for something you’re good at, or chasing a dream you’ve had for years.
With new work come new challenges and new opportunities, all of which will push you to learn both about your subject matter about yourself, and ultimately grow. You’ll need to think differently, learn a new business model, and adapt to new circumstances.
While this may seem like a reason to avoid multiple streams of income, it’s this very logic that makes it so appealing. Learning, growing, and pushing yourself will not only make you better at your side hustle, but it will likely help in your day job and other areas of your life.
For me, this couldn’t have been more true. Starting my YouTube channel and putting myself out there on video made me a stronger presenter in my corporate job, and gave me more confidence in any type of public speaking. Running my Etsy shop and dealing with customers of all types improved my ability to collaborate with colleagues at work. And launching this blog made me a stronger communicator.
On top of that, the sheer act of pursuing my dreams and going outside my comfort zone built my confidence as a person and my belief in myself that I can do anything I set my mind to.
4. It empowers you.
While there are practical reasons to pursue multiple streams of income, it can also be really empowering.
First, it can be empowering financially. Depending on your earnings and savings levels, additional income can fund that course you wanted to take or that trip you wanted to go on. It can pay for your hobbies and interests. And it can cover that upgrade like a new roof or first class ticket.
Second, it can be empowering mentally and spiritually. As I mentioned above, the side hustles I started made me more confident and gave me the courage to follow my dreams. Ultimately, I hope they grow enough to exceed my former corporate earnings and be a bonafide career.
So, are you sold yet? Pursuing multiple sources of income can be a financial and personal game-changer.
Check out my post on how to choose the best side hustle for you to get clear on what types of opportunities may be the best fit. Then, browse my list of ways to earn extra money from home while working full time.
Leave me a comment below: are you considering pursuing multiple streams of income? If so, what type?