23 Sep Why You Need Multiple Streams of Income
As a student, you would always be asked, what would you like to be when you grow up? “A Doctor?,” “An Engineer, “ probably an “Architect?” Growing up, you would always be drawn to choosing a single field to pursue. However, when I started working, I came to a realization that the salary for a single job will not be able to build a solid and stable financial portfolio, sometimes, it can’t even support a family with kids and dependent parents. The Pandemic has shown us the “what ifs” that we fail to recognize and address for the longest time. Let us go through those
1. What if, the industry where my active income is sourced suddenly closes down?
2. What if my current business line slows down because technology has rendered it obsolete?
3. What if I lose my current job?
4. How about my retirement? How can I build a comfortable and worry free retirement beyond my working years?
Planning and foresight are key to ensure that we do not fall short as we go through life’s milestones.
Here are 7 Income Streams that you may want to explore:
1. Earned Income – income from working another job. you may want to take on additional consultancy or a weekend job probably? Since this is active income, it has to be something we are willing to devote time to learn, something we are passionate about or something we love to do.
2. Profit Income – Income from buying and selling. Choose a merchandise that may be of popular appeal, source your supplier and choose a platform to sell it to like Shoppee or Lazada or facebook.
3. Interest Income – Income from lending Money, note this comes with so much risk.
4. Royalty Income – Income from others using your ideas. Example of these are writing a book, and composing a song.
5. Dividend Income – Income from dividend paying stocks or dividend paying insurance policies. You have attend trainings to learn the ins and outs of investing money in the stock market. Purchasing a dividend paying insurance policy would also be an alternative.
6. Rental Income – Income from renting out a property.
7. Capital Gains – this is earned when your investment in property and other assets increase in value.
It would not hurt if we create as much income stream as we can. As I always tell my client, “Start as soon as you can, Invest as much as you can (time and money), it will not hurt given that at the end of the day, all the benefits are yours to enjoy.”