It is very common today for people to have multiple income streams. Think of people you know and I bet you can name a handful of people that make money from more than one source. Some people embrace it and aren’t ashamed of their multiple steams of income, yet others seem to shy away from it. Just because you have an alternative source of income – or god forbid a passion that you’ve turned into a money-making business – doesn’t mean that you are less qualified to do your day job.
I admit there can be a bit of a stigma for some. They feel that if you don’t concentrate 100% on one job then you aren’t worth doing business with. However, I know many successful individuals that have multiple streams of income and that’s how they got to be so successful. They didn’t rely on one source of income to get by living the life they wanted to live.
Now trying to maintain multiple streams of income isn’t for everyone. If you are thinking about creating another source of income check out the pros and cons below.
*You are diversifying your risk. If something happens to one income stream, you have another one to fall back on.
*You are balancing your passions, talents and strengths and providing variety in your day. Some people can be really good at their job but get really bored doing the same thing day in and day out. An additional business or job can give you the variety you are looking for.
*You are building a nest egg. I know some people who sock away the money from a second income stream into their retirement or savings accounts. They are working towards not working in the future.
*You are creating something for yourself to do after retirement. Let’s face it – some people get really bored in retirement so an alternative income stream now could continue through retirement either providing the money you will need to retire and/or provide you with something to keep you busy.
*You can make lots of money. Multiple income streams, when done right, can mean a very healthy income.
*It can be time consuming. You must consider the time involved in having multiple streams of income and if you really want to spend all of your time working on those streams. There are lots of other things you may want to spend your time on … your family, health, recreation, hobbies, etc. How much money is your happiness worth?
*The competition. The business world is fast paced and ever changing. There is so much competition out there you better be pretty darn good at what you do to compete and earn another stream of income. Research your ideas and make sure you have the talents and skills to pull it off.
*Lack of focus. Unfortunately, some people aren’t able to focus on more than one business, job or income stream. It’s more beneficial to do one job really, really well than to half-ass two jobs.
Hopefully now you have a bit more information to decide whether managing multiple income streams is for you!
Danae Branson is the founder of Elite Scheduling Services. She provides scheduling, marketing and administrative services to professionals in the financial industry. Check out the website at www.eliteschedulingservices.com.