Why You Should Have Multiple Streams of Income

Written by Cate Emmah

What would happen if you were to lose your job?

How would your business hold up if one of your critical clients were to end their contract with you?

Inconveniences that can threaten your financial freedom are bound to happen. The question is, how easily can you bounce back from these setbacks?

While some setbacks might barely graze the surface, others will make it tough to offset bills and loans. The unknown variables in life are why you should consider diversifying your income sources.

THE IMPORTANCE OF INCOME DIVERSITY

Diversifying your income simply means creating different channels that can generate revenue for yourself or your business. In turn, you get to enjoy a variety of benefits, including:

• Avoiding over-reliance on a single revenue stream • Creating a safety net for when/if one income stream dries up • Widening the client base for your business(es)

When you have additional sources of income, the loss of a single income stream wouldn’t necessarily force you to start from scratch. It can not only keep you and your business afloat as you figure out your next step, but can also help you find ways to attract new clients, making it easier to bounce back from minor setbacks.

DIGITIZE YOUR PRODUCTS OR SERVICES

The modern businesswoman is fortunate to have access to multiple social media and eCommerce platforms. It is now easier to reach more clients than ever before. Look for ways to leverage the two. For instance, if you embrace social media management best practices, it can be easy to gain potential customers’ attention. Clients are more likely to buy from businesses with an online presence than those without one.

Posting products and services on eCommerce platforms also places them closer to your ideal client. In addition to your business website, there are many options, such as Amazon, Shopify, and Etsy.

CONSIDER PASSIVE INCOME SOURCES

While passive income sources require more effort when starting, they are worth the time. Once you get the wheels moving, you can enjoy consistent income with little to no friction.

Some great passive income options include real estate, affiliate marketing, peer-to-peer lending, and dividend stocks. However, just because people market passive income as ‘money you make in your sleep’ doesn’t mean you don’t have to put any work into it. It takes time to develop it into something significant.

Be sure to learn the ropes for whichever option you choose. Research before settling for a specific opportunity. Consult people who have been using these income streams, or pay for courses that offer unbiased information to help you decide.

The future isn’t set in stone, and hurdles like the coronavirus pandemic will always be around to prove that. Having multiple income streams cushions you against today’s dynamic world.

Make the time and effort to diversify your income sources now so that you can enjoy some financial freedom and peace of mind later.