Why Have Multiple Streams of Income?

Dear Young Earners, Today, I am going to discuss: Why Multiple Streams of Income? 

I was recently with a small group of people when the subject of multiple streams of income arose. One member of the group in particular seemed to be vehemently against the concept, because she was saying that people should not have to do that much work. She is entitled to her opinion. But, I felt that she was mixing the concept of having side hustles with having multiple sources of income, because she was emphasizing that one should be able to make enough money with just one job to be able to earn a living. 

Because I feel strongly about the need for multiple streams of income, I want to talk about why I think young people should aim for that goal. But first, I want to clear up one thing… 

Multiple streams of income does not necessarily mean having multiple sources of active income, aka having multiple jobs. While I am not personally opposed to having multiple active incomes, it is not the only way to have multiple streams of income. 

Now that I have cleared that up, let’s get to the reasons for having multiple sources of income. 

Why Have Multiple Streams of Income: Reason 1

More money. Even if you are perfectly happy with your current income, there is a good chance that you have some non-mortgage debt that will take over a year to pay off. Perhaps you have student loans. The average length of time to pay off student loans is 20 years. It can reportedly take some professional school graduates up to 45 years to pay off their student loans. With all of this debt in mind, it seems obvious to me that building even a small additional stream of income would be welcomed to help lessen the debt burden. If you don’t have debt, you could use the money for other things, including investing and helping others.

Why Have Multiple Streams of Income: Reason 2

More stability and security. While you may feel that your job is stable, companies and organizations are always down-sizing and even completely shutting down. Relying on one source of income is risky. On the other hand, having multiple streams of income allows you to have some back-up income in case you lose your job. It decreases your risk of being incomeless. While your additional streams of income may not cover all of your monthly bills, when you have more than one stream of income, you can worry less about the loss of your main job. So, having multiple streams of income helps with managing financial risk.

Why Have Multiple Streams of Income: Reason 3

Achieve goals more quickly. Having multiple streams of income can help you achieve your financial goals more quickly. If your goal is to pay off debt, having more money will help you do so. If your goal is to save for a down payment for a house, your extra streams of income will help you do so. But, maybe most importantly, having more streams of income will help you get to the point at which you have more money left over after paying bills. The extra money can be invested and allowed to compound, thereby growing that stream of income. At some point, you can take some of that money and invest it in new income-producing assets. 

Why Have Multiple Streams of Income: Reason 4

Personal development. Having multiple streams of income can encourage you to use and strengthen talents that you may not use in your main job. It can even encourage you to develop new skills as you build or work on building additional streams of income. Every job can teach you something.

Do you have a green thumb, or a creative side? Are you an excellent baker, or a spreadsheet whiz? Have you ever wondered if you could earn some money with these skills? 

Are you interested in learning about stock investing? That would be an excellent idea since owning stock is a great way to build a passive stream of income. You could focus on building a dividend stock portfolio. It takes a while. But, time is going to pass anyway. So, you might as well use it to build your passive income as you go along. 

Bonus Reason

Ultimately, it is possible for multiple streams of income to allow you to choose when and where to work. 

Now, I am not saying that having multiple sources of income will make you rich. (It could. But that is not my focus here.) I am saying that multiple streams of income is a good thing to have, because it adds to what you earn with your main source of income and can give you a sense of confidence in being able to take care of yourself. This in turn can allow you to take chances, perhaps find the career of your dreams, and make the moves that can create a richer life. This is especially true if some of those sources of income that you build are passive.. 

There you have it…five reasons (including the bonus) to have multiple streams of income. 

Why Have Multiple Streams of Income

Key Takeaways

• You will have more money than if you only had your one main job. 
• In case your main job cuts your hours, you’ll have more stability and security.
• It can allow you to achieve your goals more quickly. 
• You can hone an existing skill or build a new one.
• Ultimately, it could help you move toward being able to choose where and when to work.
• Every little bit counts, especially if you compound it.

There you have it…the 411 on why have multiple streams of income. Having multiple streams of income is self-care. Don’t let anyone tell you otherwise. 

May you pursue it, achieve it, create passive streams, allow them to compound, and then use your life and time to help others.  

You can do it! I have faith in you. 

Hugs, 

Rich Mom

If you would like to read more about managing risk, check out: 

Managing Personal Finance Risk

Looking to read more? You can check out these posts: 

Building Wealth In Your Twenties

Keeping Up With The Joneses

What to Do With Cash

What is a Side Hustle

P.S. For those of you who are interested in the Bible’s word on this topic, I have a sixth reason to build multiple streams of income. Ecclesiastes 11:2 (New International Version) says: 

Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land.

PSS. According to the John Shufeldt website, Reportedly, 7.8% of U.S. workers have more than one job. You can check out his article here: John Shufeldt

Who is Rich Mom? 

If you stumbled upon this post and you are wondering who Rich Mom is, check out my “About Rich Mom” page. 

Also, please note: I am not an investment advisor. Always do your own due diligence and research before investing. Check with your own investment advisor. 

Also, remember that past performance is not a guarantee of future performance.

The information shared here is not intended as financial advice, just entertainment and education.