- Life is unpredictable. Life is constantly changing. Technology, government, healthcare, internet, and bills in general. Things seem to cost more and more, yet salaries seem to be staying the same. Stores that we once frequented have gone out of business, ie Payless Shoes & Blockbuster. Some have gone out just because technology changed so much they were no longer relevant, others just couldn’t stand against the competition. No job is safe and those we thought were secure like government jobs are furloughed or eliminated due to budget cuts. I have been an eye doctor for 12 years now and I have seen more changes in healthcare than older doctors probably saw in their whole career. The implementation of the Affordable Care Act and the constant threat of it being removed. Multiple streams of income helps to protect you from some of the uncertainties of life.
2. Reduce the Risk-The word investment itself brings with it risk. Multiple streams of income helps to minimize the risk of any one investment or stream. In most instances when one industry is down, another industry thrives or at least weathers the storm. I was lucky enough to live through the Great Recession. I’ve seen the stocks soar and drop to almost nothing. I was always taught that real estate was a relatively solid investment, yet I have felt the devastation of having my home value drop by 50% and look foreclosure in the face and say not today! Multiple streams of income helps you to weather the storms of life without total economic ruin, and if done right prosper in the storm.
3. You have multiple talents – God has given us all multiple talents, likes, and dislikes. There is no reason that you have to just pick one and only do that your whole life. Maybe you are a teacher, but you also love to bake, decorate, and exercise. There is no reason why you can’t use one or more of your other talents to earn additional income. I was watching a video by TD Jakes and he said “every talent is a stream.” God doesn’t give you talents for nothing, they are to be used. Some are meant to be given freely. God is generous enough to bless us with talents that generate income and allow us to enjoy our dreams. If you have a nice voice, you could read audio books, or do voice overs. If you have nice hands, you could be a ring model or be used in product demonstrations. The possibilities are only limited by your creativity and your desire to succeed. Income earned from work is great, but income you earn not working (passive income) is even better. So get creative as you produce additional streams.
4. It is Wise– The concept of multiple streams of income is in the Bible. Ecclesiastes 11:2 says to invest in seven ventures or even eight; you do not know what disaster may come upon the land. The beginning of wisdom is fear of the Lord and it is wise to follow his word. The Bible is full of sound financial advise. It is no surprise that multiple streams of income is one of them
5. Financial Freedom– Just like you can fill a bathtub faster if you had 7 or 8 faucets going at the same time. The path to wealth or financial freedom is greater if you have 7 or 8 income sources flowing into your bank account. Some of the possibility for additional stream include books (eBooks), online courses, stocks, bonds, rental income, online stores, direct sales, blogs, apps, and whatever other creative legal venture you can think of. If your goal is to be financially free, multiple streams of income can assist you in obtaining your goal faster.
Tune in to Millionaire Faith’s next blog, “A 7 Step Plan to Create Multiple Income Streams.”