Most Americans rely on the entirety of their household income to come from a single organization. It is how we’ve been raised, what we are familiar with, and see as the American working class norm. However, this way of living is much riskier than you think.
Consider this: if you are among the masses who have decided to invest your money, would you put all of it into one stock? Hopefully you answered “no.” The risk of losing everything is a very real probability if that particular stock goes belly up.
The average millionaire or billionaire, throughout the entire world, relies on a minimum of seven sources of income to keep them in the “aire” end of the financial spectrum. Many of them have more. For example, Warrant Buffet has at least 70 different sources of income.
“Never depend on single income. Make investment to create a second source.” – Warren Buffet
Just thinking about making the leap from one to two (or several) investments in order to create other sources of dependable income can feel unreachable by many. There are plenty of Americans who struggle to find even one source of financial stability or who are barely breaking even paycheck-to-paycheck. The danger with this is what happens when things go wrong?
Economies change, industries go in different directions, businesses fall on hard times and make poor decisions, which lead to closing their doors, machines take over manual labor, and companies downsize or find cheaper labor every day. This leads to job loss and if you lose that one source, you find yourself in a much greater financial bind.
On the other hand, if you were getting a steady financial flow from several sources (or even just one more) the feeling of panic when one loses their job is greatly diminished. This allows for a financial cushion while you search for a new income source to replace one that was lost.
A full-time professional commitment rarely requires 100% of your attention. If you are a 40 hour, Monday – Friday, 8 hours a day kind of professional, you leave open hours of possibility. Evenings and weekends can be a perfect opportunity for you to put yourself on the market and use your skills to create other income sources. For example, you can consult, moonlight, find a part-time gig, or freelance. If you manage your time and energy wisely, you’ll maximize your earnings and create a financial cushion.
Working a “regular” full-time job is necessary for most, but chances are throughout your day you are not being completely productive, which leaves you with stretches of time that are being wasted. Use your skills to fill these pockets of time with outside projects.
For example, this article is currently being created sitting at my desk at my “regular” job (Don’t tell my boss. However, if she’s smart, she’s doing the same thing).
Switching gears throughout the day not only allows time for a second income, but keeps the brain from “burning out” on typical daily tasks. Sharing time, bouncing from projects, can give you the opportunity to work with a fresh mind and be all around more productive. This is a win-win for everyone.
The truth is there are people out there who are looking to pay others for a wide variety of skills; you’ve just got to take the time to put yourself out there in order for them to find you. Or better yet, you find them. Websites, such as taskrabbit.com, are filled with thousands of opportunities to use your particular skills to help others and make a few extra bucks. There really is no excuse to not have more than one source of income. Market yourself today and change your future.
Posted in Uncategorized on Aug 25, 2017