Diversifying your income through multiple streams is valuable because if one type of income dries up, you still have other sources to keep you going without taking a huge hit to your financial situation.
Think about it- if all your income is from your job, then you’re putting yourself at risk. If your company decides to eliminate your job, then you have zero income until you find another one. You have very little control over that stream of income.
The average millionaire has 7 streams of income because they understand that it’s just not wise to put all your eggs in one basket. Making money from just one source not only puts you at risk, it also creates limits on how much money you can make. A singular income is rarely as profitable as earning many types of income from many different sources.
Advantages of having multiple streams of income:
Beyond making more money, there are several great reasons to consider building more than one source of income, including:
- It’s easier to create several small income-producing streams over one large one. For example, it’s easier to create three streams that earn $1,000 than one stream that earns $3,000.
- It reduces the risk of being left without any income. If one source of income drops, you have other sources to help you get by. Especially in home business, which has an ebb and flow, you can offset the dry spells by having another source of income.
- It helps you avoid boredom at work by giving you different things to do every day.
- You can create income streams based on your interests, talents, and passions.