One of the most effective ways of becoming rich and financially free is by having multiple streams of income. Relying on just one income isn’t very reliable, as anything can happen to your job or your business. A lot of people are now developing other skills, and creating products to boost their income. Developing and growing more than one source of income was difficult some years ago. However, the availability of the internet has made things incredibly easy. People now run blogs and other social media accounts while maintaining their day jobs. This might sound like a lot of work, but the long run benefit could be hugely rewarding. Just go into it knowing that it will require much consistency and endless patience. Why should everyone have multiple side hustles?
While this sounds good, there are cases where people might not need to have more than one stream of revenue. This includes people that are satisfied with what they have, and don’t like to stress themselves. But even if you are a successful business owner, like our client who owns his own Taekwondo School, he is also building a franchise. He will be helping everyone in his organization be found in organic search results for a fee. This is a very smart longterm move for this forward thinking business owner.
Reasons Why You Might Not Need Multiple Revenue Streams
Even though this might be uncommon, there are cases where one might not need to have multiple streams of income. Below are some of the conditions:
- If you’re financially independent and still have a full job: People who have become financially free, and still have a full-time job might not need to develop multiple revenue streams. Working a full-time job comes with enough stress already. Adding to this might take its tolls on one’s health.
- Low unemployment rate: One of the reasons why people grow multiple revenue streams is to have something to fall back on, should they lose their current employment. Having multiple revenue streams is a form of financial security. However, you might not need to do this if the unemployment rate in your city or town is really low, as it would be easy for you to get another job.
- Partner works full time: This applies to married people. You might have to reduce the number of hours you work when married and have kids. This is because there has to be balanced with work and maintaining a good relationship with your family. However, you can still develop multiple revenues from home, if you determine, without losing significant home time.
- Job requirements: Some people have jobs that demand a lot of time, energy and dedication from them. Some of these types of jobs include police, medical doctors, and high-level workers in different industries. This set of people might not have enough free time to have a side job. However, they can always have passive ways of generating extra revenue.
Above are some of the reasons why some people might not consider generating multiple streams of revenue for themselves.
What’s The Main Aim of Having Multiple Streams of Revenue?
The purpose of becoming financially independent is to become financially independent. It gets to a point when we become old, and cannot work anymore. At this point, the investments and work we’ve done when we were young will start yielding, and we can comfortably live on them. The goal of a lot of people is to make as much as they can while they are young, so they don’t have to labor when they get older and still have children in colleges and universities.
Why DO People Have Multiple Streams Of Income?
- As earlier mentioned, one of the most common reasons people strive to have multiple streams of income is to become financially independent. Subsequently, they wouldn’t have to work, when they retire from their Being financially free means you don’t have to think of money when buying the things you need. Some of the ways of doing this could also be by investing in yourself. This includes getting more education such as a Master’s degree, Ph.D., and so on. Having multiple streams of revenue means you’d have an emergency fund, insurance, and other financial protection tools saved up.
- Another reason why people choose to grow multiple streams of income is to fund their lifestyle. While some people are fine with driving average cars such as Toyota, Hondas and so on, some people like flashy cars such as the Ferraris, Range Rovers and so on, so having a different solid stream of revenue would be needed to fund this kind of lifestyle.
- To assist others: Some people like to help those in need. They give donations for causes such as charitable giving, political contributions, health aids and so on. A lot of time and money is needed for this to be done, and this is why some people might decide to grow their income in such a way that they’d still have some time to go about their activities and enjoy their lives.
- It gives flexibility: Being financially independent makes one flexible, especially with decision making. You would not have to stick to a job you hate doing if you’re financially independent. An industry worker that is financially independent will easily quit his/her job if it’s too demanding in order to focus on something he enjoys doing. It gives you the flexibility of doing whatever you want since money isn’t such a factor.
- It increases your network of friends: Having a side job opens you up to meeting more people, allowing you to enjoy a new circle of friends in a different industry. You can never tell how many of your new acquaintances would help you in your next career, or assist you with the big break you’ve always wanted.
- Satisfaction: Having multiple streams of revenue increases your chances of achieving financial independence in a more timely manner. Financial freedom gives you some sort of satisfaction that you wouldn’t get if you were still living from check to check, under the scrutiny of a boss that could fire you at any given moment.
Overall, it’s important to know that you shouldn’t allow job security stop you from developing multiple streams of revenue. You should earn as much as you can if you have the opportunity. If not for you, do it for people you can help with your new streams of income. However, balance is everything. You must find a way to maintain a good relationship with your family, keep healthy and also be satisfied with what you’re doing.
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