YRB33The Young Retiree by 33
Money

3 Reasons You Need Many Income Streams

By Travis

This topic hits hard since something recent at work. You need many income streams in your life. Period. Having many income streams is critical to your long term financial success. I recently had to displace an associate who was working for me. This was an extremely difficult thing to do. This decision wasn't made by me, but rather the larger business. This got me to thinking, if I were to get displaced from work tomorrow, would I be okay?
 
What I Mean By Many Income Streams
Here is the simple way to think about it. Your 9-5 job is an income stream. Anything else that produces monthly cash into your pocket is an income stream. You can checkout this article I wrote in the past about different horizontal income streams I currently have. 
 
If You Were Fired From Your Job Tomorrow, How Would You Make Ends Meet?
Have you ever thought about this? Most people don't, but the recent experience I had started the wheels turning. The majority of people are reliant on one source of income. This source of income is typically their 9-5 day job. There is nothing wrong with this approach if you are employed and want to be employed the rest of your life. In this sense, you are exchanging your time for money.
 
Again, nothing wrong with this approach as long as you realize what you are signing up for. People with one income stream are dependent on staying employed. If you were to get displaced, you are putting yourself in a dangerous spot.
 
Nothing Is More Powerful Than Having Control Of Your Destiny
When you are dependent on one source of income, once that stops, your income stops. Let that sink in. When you are dependent on one source of income, once that stops, your income stops.
 
If there is one thing I have learned in the last year and a half, it is the importance of having many income streams. Over the past year and a half, I have been working hard to develop many income streams. The end goal for is to develop income streams from investments that become greater than my W2 income in the next 5 years.
 
Key Takeaways:
  • Evaluate how many income streams you currently have. If it is one, that is fine. The goal is to understand if you are reliant on a single source.
  • Having control of your financial destiny with many income streams allows you freedom.
Don't forget @TheYoungRetireeBy33 3 Core Principles:
1 - Your money should make money for you
2 - Start early to realize the power of compound interest
3 - Eliminate your largest expense by house hacking
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