Business

FIVE REASONS WHY YOU NEED AN EXTRA SOURCE OF INCOME

Written by Chioma Kalu

Warren Buffett Quote: “Never depend on single income. Make investment to create a second source.” (12 wallpapers) As of writing, the whole world still suffers from the negative effects of the pandemic. One of the hardest-hit facets is the people’s economy and financial situation. Businesses have closed, schools are temporarily prohibited, offices are closed, and many people have been left jobless. If there’s anything that this situation should teach you, it’s the importance of having multiple income streams.

While you may think that your day job is more than sufficient to pay the bills, you have to go deeper. If your day job doesn’t allow you to buy a few wants here and there or doesn’t give you extra to set aside for your savings, look for another income source.

Earning extra income will improve your life as you:

Pay off your debt.

Save for big purchases, such as a vacation.

Stop living paycheck to paycheck.

Help you reach retirement sooner.

Figure out a business idea.

Become more diversified with your income streams.

That said, here are other reasons to further convince you about the importance of having other sources of income:

  1. Offers You Job Security

You may never get job security working for anyone even if it is a government agency.The difference between the private and public sector on this matter is that the public sector offers more job security.Every job have hazards, targets and expectations from Management that if not met by lead to disengagement from duty.

With multiple income streams, you don’t have to worry about this happening to you. When you lose your main job, you’ve still got a backup to get you by. Think of every job opportunity as a means to add money to your bank, and that’s how you can say you’ve got job security: through diversification by doing some easy and flexible jobs.

  1. Helps You Cover Rising Health Care Costs

This section applies particularly to those of you who are breadwinners of the family or have just started having a family. Take note that many expenses will keep on haunting you, especially healthcare.

It’s inevitable for people to get sick. Even if you do have an insurance policy, remember that there are also expensive premiums that you’ll have to pay. If there are so many of you in the family, this will only escalate the cost.

On the other side, if you don’t have enough money to pay for insurance premiums, that should push you to have multiple incomes. If one member of the family gets sick, how are you going to pay for it?

Healthcare is getting expensive, and it can burn a hole in your savings or put you into debt if you’re not prepared for these emergencies.

  1. Opens Up Unique Work Opportunities

Even if you love your office job, this doesn’t necessarily mean that it’s your hobby or your passion. There may be other pursuits that you’re more passionate about but never got the chance to push through with it. It could also be that these other work opportunities aren’t enough to give you economic security if you were to use it as your main income source.

With multiple income streams, you’ve got more leeway to pursue your passion, even if it isn’t necessarily a lucrative source of income. Because of the advancements in technology, the world is now full of possibilities. For example, if you wish to pursue art, you can make income out of it by advertising and selling it online. You can even work from home while taking care of the kids.

  1. Allows You To Save

Now more than ever, the importance of saving cannot be over-emphasized. However, many still aren’t saving enough. This isn’t really because they don’t know the importance of saving. The problem is that it’s just difficult to balance all expenses out in a month to have enough to save.

As expenses will always keep increasing, this can put families in a sticky situation. When your kids grow, do you have enough on their funds to send them to college? As early as when they’re young, have many income sources to beef up your savings account.

  1. Helps You Pay Down Debt

If you’ve already incurred debt before having multiple income sources, that should teach you that you need to look for another job. There’s very little way that you can pay off your debt if your current job is what has gotten you in this situation in the first place. Side jobs will give you that income to help you pay off debt.

Just make sure that once you pay off your debt and still have your extra job sources, don’t put yourself in that debt again.

It’s safe to say that working to have multiple income streams is no longer a luxury, but it’s a necessity when times can be uncertain. When there are many income-earning opportunities on top of your office job, there’s no reason why you shouldn’t consider going for one.

One income source is a risky way to live, especially if the income you get from it is only enough to get you by daily.

After reading through, all that’s left for you to do is to get started looking for those passive, flexible, or part-time work opportunities to add to your current job.

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About the author

Chioma Kalu

My name is Olugu Chioma Kalu. I was born in Aba, Abia State Nigeria. I am currently a student of Abia State University Uturu (ABSU) studying English Language and literature. I am an effective communicator and a good writer. I assure you that I understand you and will be able to connect with you.

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