The Advantages of having more than one Source of Income

When it comes to your income, diversification is certainly a good thing. This concept is not only applicable to stocks, but when it comes to where you get your income from. If you have only one source of income, you could open yourself up to risks, and if you lose that single source of income, you could be in a bad spot. Not only is having one source of income a tricky thing to pull off if you ever happen to lose it, but is one source of income really enough in this economy? Let me tell you why you should consider gaining another revenue stream to help out your budget.

One of the biggest advantages of having two sources of income is that you can always rely on at least one of them coming through for you. Whether it be stocks, bonds, having two jobs, or whatever else it may be, you can always count on one of them giving you a stable income every month. Even if you get fired from one job, you will still have your other job unless you are really unlucky, and even if your stocks don’t do well, you still have income from your jobs right?

The nice thing about having two sources of income is that you don’t always have to put all your energy into sustaining one of them. For example, I write for this site and get paid, plus I work a part-time job as well. If I get bored, or burnt out from writing, I can always go work my other job for a bit and still make money. When I get bored with that I can come back and keep going with my writing. It is a win-win and I never get too burned out to work a lot of hours form one job or the other.

Another advantage to this is that you can get more income from two sources than you can from one. If I was feeling really ambitious, and needed to make a lot of money, I could work both jobs. I could work 40 hours or more at my one job, and still come home and work on my writing, and make some extra money there. I could easily make 2500 a month or more if I went all out, and that is double my debt level each month, meaning I would be making enough to take a month off for every month I worked.

Having money to save is a good reason why you should have more than one source of income. If you can provide more than a single source of income, you can use one to pay bills, and the other to save, or buy stuff with. Its always nice to have that little extra coming to you every month that can be disposable income, or savings.

If you can, diversify! Its good for stocks, and its good as a way to keep your income steady every month. Save, spend, use it as extra money to just have, or keep more than one revenue stream open just in case you lose another source. It is a win-win situation if you can manage to get two or more sources of income.