Top Reasons Why It Is Important to Diversify Your Income Streams

  • By: mvadmin
  • Date: January 31, 2020
  • Time to read: 3 min.

Having a steady income is something that most of us have come to take for granted. Yet in uncertain job markets and bad economic weather it is something that can change at a moment’s notice. The best ways to ensure you are not left out in the cold overnight if you lose your job is to ensure you have diversified your income and have sufficient savings as well.

Savings do not last forever in times of crisis, however having multiple jobs and income from various sources can help you live a better life even when things are going well. You can also develop your skills and build a brand that makes you a reliable person.

In the book “Entrepreneurial You”, its author Dorie Clark who is a marketing strategist recommends diversifying your income and career so that you’re never left in the lurch if you lose a job. She explains that the there is value in diversifying your income streams and professional pursuits and that in the event that you are laid off you would still not be completely jobless.

Diversifying your job is just like investing in diversified stocks, she said. “Everybody knows if you have money, you shouldn’t invest it all in one stock. Everybody knows that’s a bad idea. You need to diversify there.

The best way that people can create real, legitimate professional stability is by choosing to cultivate multiple income streams, she believes. This is especially true for entrepreneurs and even for those who work for companies. Diversifying your income could also mean using your time to pursue your passion and making money from that. Having an etsy store or holding a seminar or workshop about topics you are an expert at can be ways you can make an extra side-income.

By doing something that is not just not your full time main job, you also develop your skills and broaden your scope and also become a better rounded personality since you will meet with people from spheres of life that aren’t just related to your main job. All of this is in addition to the extra cash that comes in every month.

In “Entrepreneurial You” Dorie Clark writes that she earns income from seven sources writing books, speaking, teaching at a business school, consulting, executive coaching, running online courses, and generating affiliate income through her email list. Not all of us can earn from seven sources but adding on at least one extra source to our current income can make a big difference.

Whether your side gig is a small one or a simple one doesn’t really matter, getting started and being ready for the hustle is what can help make the extra income. There are many jobs that you can take up if you don’t already have something at the back of your mind right when you read this article. Designing a website, making handmade products, taking up small catering jobs if you are a good cook, teaching a skill you posses like yoga, Pilates or dance to others, can all be ways you can generate income.

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