Why Should I Have Multiple Streams Of Income?

why should I have multiple streams of income

Why Should I Have Multiple Streams Of Income?

Nowadays, creating multiple streams of income is no longer an option, it has become a necessity. There’s no such thing as job security any more and anyone who desires more financial stability has found himself  in a position where he needs to consider creating at least one additional stream of income. What are the benefits of creating multiples streams of income and why should I bother?

Creating additional streams of income is essential to protect yourself and your loved ones against the unavoidable, such as economic downturn or a job loss. Consider the risks that come from relying on one source of income, such as a job or a business. Creating an additional stream of income can generate an extra cash flow in times of hardship.

Your additional income streams can be active, passive or a combination of the two. Active income streams may pay you for doing something that you love,  while passive income streams can provide income for you without your having to do much of anything at all. There’s always the option of combining the two. The more diversified your income streams among different industries the better you are protected against major losses during downturns in one market. This is also one of the reasons why the wealthy become and stay wealthy.

Creating your additional stream of income is easier than you thought. Here’s how:

1. Make sure your primary source of income is secure.

Don’t start building a second stream of income until your primary source is secure. Whether it’s a day job or a business, make sure your primary source of income is reliable enough before you embark on the next step. I strongly encourage you against quitting your job and starting a new business. “I’ll build a website and they’ll [the customers] will come”. It simply doesn’t work that way! It might take more time and effort to create an additional income stream than you had initially thought.

2. Identify your unique gifts and abilities.

Every person on this planet has unique gifts and abilities that differentiate them from others. What knowledge, experience or abilities do you have that other might be willing to pay you for? Remember, what might be common knowledge to you isn’t for other people.

3. Identify your market.

Based on your unique talents and abilities, who are the people you can help or who will pay your for the solution you offer?

4. Know your target market.

Ask your prospects what their needs and desires are rather than second guess and only then create a solution.

5. Find a mentor.

Rather than trying to figure it all out on your own, find someone who has already achieved what you want and model their behavior.  You might even wish to consider hiring a coach.

“Nobody said it’ll be easy, they just said it would be worth it”. It might take a bit of sweat and tears before you create an additional stream of income, however, it’s well-worth the financial security and freedom that comes from having multiple streams of income.

Source: http://www.entrepreneur.com/article/239960