An income stream is a source of money. Some examples of traditional income streams may include a job, a spouse with a job, child support or alimony, or retirement income. If your financial situation is 100% dependent on just one of these income streams, you are putting your financial life at risk.
Many people realize this but don’t really know how to change the situation. Most people think that if they need more income, they need to get a part-time job in addition to their full-time job. While this is certainly one way to do it. It’s not the best way for many people.
Why? Well, your income is going to always be limited. Most part-time jobs are paid hourly and there are only so many hours in a day. Plus, if you have a family or other obligations, the time factor may make it impossible to meet all of those obligations. Burn-out and exhaustion are also common. And if you have kids? Well, child care can also throw a wrench into those plans, depending on your situation.
Families that have two working adults may feel that they are in a slightly better situation. After all, if one person loses their job, the other will still have income coming in. But, think about that for a minute. Can most families that are used to two incomes, suddenly live on just one? Most people couldn’t, at least not without huge lifestyle changes.
And it’s not always easy to implement huge lifestyle changes quickly. If you have a lot of debt, it isn’t just going to go away because you don’t have enough income to pay it. Those bills are coming due no matter what. Some debt like student loans may have ways to postpone payments temporarily, but in many cases that interest continues to accrue. Plus, the postponements are only a temporary fix. Also, debts like big house payments and car payments may only be fixed by selling the item in question. And we know that is easier said than done.
So how do you fix this?
Well, having multiple streams of income is one of the best ways.
Some of the less traditional methods of earning income include:
- Home Businesses / Online Businesses
- Regular Business in Office or Brick and Mortar Store
- Investment Income
- Rental Properties
Investment income and rental properties and regular businesses often involve significant outlays of money and also involve a lot of risk. These income methods are not for everyone. If you don’t have the money to invest or the time to wait for the investments to create a steady income, they just aren’t going to be good options for you. I am not knocking these three income stream methods at all, because they can be very lucrative. But, for the average person who doesn’t have the money or know-how to take on these types of income streams, they just aren’t going to work.
But home businesses, online businesses, and blogging are options that almost anyone can do. The money involved in starting most of these businesses is small compared to starting a traditional business in a brick and mortar store. And the income possibilities are endless. Whether you just want a part-time income or want to become a millionaire, it’s possible. Obviously, becoming a millionaire is going to be a lot tougher. But, people do it.
You may want to check out a few of these articles for inspiration:
The great thing about all of these money-making options, is that you can set your own hours and work when it is convenient to you. You don’t have to leave your home. You don’t have to put your kids in daycare if you don’t want to. You DO have to put in the work if you want to make any money. But, as your own boss, you can decide what that looks like.
Don’t underestimate the importance of having one or two extra income streams in your life. In this economy, no job is really stable or secure.