Income is an important aspect of life. Why some persons says money do not bring happiness, it is very clear that without money, life will look as if it will end. A man recently in Nigeria due to the economic recession in 2016 committed suicide and blame it on the president. This shows why money is very important.
Having one stream of income is very good but adding additional income is necessary, so that if one fails, the other will provide an hedge for that period of time.
If you are on paid employment, it is fine. However, having up to two additional stream of income will be like a three ropes intertwined together. Having, more than one stream of income do not mean that you are greedy for money. It will only result to that if you convet others properties and income. Let us now see some reasons that will motivate you to increase your streams of earnings.
In our present world companies retrenched workers at due to various reasons. Most times reasons which are not yours. This has lead to insecurity of jobs. However, an extra stream of income will provide you with income, also called emergency fund, that you need to survive, before you get that new job.
We all need emergency fund to meet several emergency expenses. As a rule of thumb, six months of your monthly income should be saved as emergency fund. To make it easy for you to have emergency fund, then you should think of having more than one stream of income.
This is related to job insecurity. Government may adjust it’s policy that may affect the company were you work. Or, that may affect negatively, the business you are currently operating. So, having another source of income will condensed the effect of losing one source of income.
CHANGES IN BUSINESS ENVIRONMENT
Government policy is a type of business environment. There are other business environment that can affect a particular line of business. For example, changes in weather condition can drastically affect a farmer’s crops. You see, if in such case, the farmer has other sources of income, then he will rely on them.
An additional source of income provides you with the opportunity to save more money. It is also possible, however, to have more than one stream of income and still not have any savings. With proper planning and budgeting you can save more with more than one source of income.
CONTROL OF YOUR INCOME
Having multiple stream of income will make you have total control of your income. It will reduced bad debts and make you focus on good debts. You can easily plan and buy whatever you need at the right time.