In today’s economy, can you imagine what would happen if the sole breadwinner in your family lost his or her job? Because of the fragility of having just one main stream of income, multiple streams are both popular and highly recommended!
But what does ‘streams of income’ mean? An income stream is some form of cash flow that comes toward you for products you’ve created or services you’ve offered. Working at a job and getting paid for it is a stream of income. A writer produces a book, a product, which is a stream of income being generated by that product.
Multiple streams of income in everyday households are becoming more popular because of the vulnerability of having just one stream. For example, if one stream suddenly dries up – you lose your job, or your business fails – then you have another stream as backup and you aren’t completely broke!
Businesses that rely on and earn all their profits from a single product or service are more likely to experience economic ups and downs, making that service or product less profitable in the long run. To avoid this, today’s businesses use multiple streams of income to provide safety to their business and stop it from running into loss.
On the other hand, having multiple products or services to provide to consumers gives you the option of offering your customers or clients more choices. Take a water company for example. They earn their revenue many different ways: they sell bottled water or offer other water purification options, including faucet filters or larger, more developed filtering systems that offer clean, safe water to an entire household or business.
Yet another advantage of multiple streams of income is that when the economy becomes stable, you can use a couple of streams to pay specific bills, save them for retirement or use them to pay off debts! By having multiple streams of income, your savings funds will increase and these all add up to a better life during retirement. You’ll be able to save up for that yacht or luxurious trip to Italy that you’ve always dreamed of!
Developing multiple streams of income is not difficult, and this makes it even more popular in today’s world. Some ideas for multiple streams of income include:
1. Investing in real estate – this requires initial cash at the beginning, but the potential is enormous.
2. Running online stores such as an eBay store
3. Freelance writing
4. Home businesses
5. Website designing/graphic artistry, if you have the skills. You can pay for a few courses to learn how to use the equipment and software but after that, you can use your skills to generate money.
6. Making and selling products – people have earned money by simply knitting wool sweaters and selling them! Why can’t you?
The economy of today’s world is probably the most unstable we have ever seen. This stresses the absolute need for multiple income streams. They are the new economy and the only way to survive the current economic downturns!