Building multiple streams of income is no longer a luxury, it has become a necessity. If the high rate of unemployment and mounting job losses have taught us anything, it is that nobody's job is safe. Unfortunately for most people, their only source of income is from their job, which can be a risky way to live. Some couples may be more fortunate and have a spouse bringing in money each month, but they are still relying on a job for their livelihood.
Rising Health Care Costs Whether you are in favor of the health care reform or not, chances are you are feeling the pinch of higher health care costs. Adding an extra income source can go a long way in paying for things like higher prescription costs and unexpected medical costs.
Unemployment How safe is your job? Let's face it, no job is really ever safe, especially in a tough recession. Having other sources of income can help you deal with a job loss much easier than being caught off guard. Even if your other sources of cash can't cover all of your monthly expenses, it can still give you time to figure things out.
Paying for College How much are you saving for your kids college? Instead of putting your retirement at risk by saving up for your child's secondary education, why not create an alternative income stream to help out. Having multiple streams of income bringing in cash every month can help ease the burden of paying for college.
Living Within Your Means In order to build true wealth, you must be able to live within your means. If it is impossible to cut your spending any further, or you just don't want to sacrifice anymore—create a new source of money. There are only two ways to live within your means -- either spend less or make more money.
Pay Cash for Purchases How many times have you been able to pay cash for a car or could pay for a large home improvement project without taking out a loan? A second or third income stream could be used to save for these types of purchases so you don't have to take out a loan and pay any interest. What a concept—pay less interest and keep more of your money!
Build a New Income Stream What better way to use your extra income then using it to grow another income stream? If you don't need it to survive, then why not use your extra income to your advantage to increase your monthly cash flow and become financially independent?
Diversified Income Sources Any good stock broker will tell their customers the number one rule as an investor is to build a diversified portfolio to reduce risk. If you would diversify your investments, why wouldn't you do the same with your income streams? Creating multiple income streams allows a person to diversify the various cash flow sources that are coming in. In the event one dries up, then there are other sources of income to lessen the loss.
Take Control of Income When was the last time you got a raise at work? Even if you have received one in the past year, there is no guarantee you will be getting one next year, especially the way the economy is behaving. Do yourself a favor and take control of your finances by creating multiple streams of income. That way you have the power to give yourself a raise anytime you like!
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