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For over forty years (48 years actually) I’ve provided counseling on the emotional, psychological, and practical aspects of handling money. The number one most important aspect has been to create an income independent of any one source. With multiple sources of income you create both independence and security. I spoke about this in an earlier article with the title “There Is No Security.”
What can multiple sources of income look like?
Here are some areas besides a paycheck that could provide you with income:
- Productivity bonuses from an employer
- Interest income; peer to peer lending, trust deeds, bonds…
- Note payments
- Royalties (books, music, oil and gas, inventions…)
- Side business, Etsy, MLM…
- Distributions from trusts, REITs..
- Social Security
- Qualified retirement plans (IRA, Profit Sharing, Pension, 401(k)…)
You probably know people who have as their only source of income a paycheck. To me, that is the most insecure source of income.
With 100% coming from one source anything can happen from the business downsizing to the pandemic and the business closing, to a change in direction, to selling off a division, furloughs, layoffs, losing a major contract, or just getting fired. And the employee has no control over any of those events.
When you treat yourself like you matter and put yourself first in line for setting aside money with the goal of having Complete Financial Choice™ then you have at least created a cushion for one of those events that can end your job as an employee.
An additional insurance option would be to create another source of income, whether it’s an online business, direct sales (multi-level networking), consulting, or moonlighting. You could even do pet sitting, babysitting, house sitting, anything in addition to your job if that is what you have.
Most people I communicate with are self-employed or entrepreneurs, so what I said here is nothing new.
If you fit into that category then consider other streams of revenue from your business. If you do one-on-one consulting; look at doing a group program, or selling a book that showcases your expertise, or expanding who can benefit from your work or connect with a complimentary professional to exchange client leads.
If you sell plumbing supplies you could consider adding plumbing repairs by partnering with plumbers or putting on training seminars on the best way to use some of your merchandise.
If you want some ideas on what YOU can do for an additional stream of income, you can reach out to me for a free 15 minute call >> http://chatwithrennie.com
To your prosperity,