We’re all told to have multiple streams of income. In the modern economic system this is becoming more and more important as society is separating itself into those that are reliant on the government and those that are uber rich with the middle being washed out. To live what most would call a “middle class” lifestyle is becoming harder and harder to afford for the majority of people and the average job just doesn’t cut it anymore.
Because of this you have many gurus out there telling you a bunch of different things to do and one of the biggest things that comes up again and again and again is to have multiple income streams. Diversify your income, do a little bit here, do a little bit there, have multiple streams coming, that way when one dries up there will be another there to replace it so you won’t feel it as much.
And while there is a certain logic to this, there’s also a lot that the gurus aren’t telling you. The fact of the matter is that multiple income streams can be as much of a hindrance as they can be an asset depending on how they’re set up and how they’re used. So let’s dive into this and see how to make the most of it and make it work for you.
Multiple Income Streams Or One Reliable One?
Many entrepreneurial gurus like to make fun of jobs, saying that they stand for “just over broke” and there’s truth to that, I’ve probably said it at some point. However at the same time most entrepreneurial ventures will keep you under that from just over broke to completely under broke. One advice to have multiple income streams comes down to start a information product service, turn a hobby into a meagre income, do something akin to multi-level marketing, write ebooks, or something of that nature.
All things that’ll add a couple nickel and dimes to your wallet but for the time investment are they really worth it? Now given the right time, knowledge, work, and luck some of these things can eventually make big money for you or even a decent side income, but the thing is you have to calculate if it’s worth the time to build up. Do you have the energy and time to put the work that’s needed to get something up to where it’ll make good money for you?
Look at ebooks, how many ebooks do you have to write or pay someone to write before a decent income can be had from it? What about doing something on the side like woodworking? How long does it take to get a client list and then how much are those clients going to pay and how much time is that going to cost you? Not to mention materials and equipment. Could that time be better spent just doing a few extra hours at your job?
If you’re salary maybe not, but if you’re hourly would that time not be better spent at your job? At least money wise? Maybe not, but it’s always good to stop and think about it. Especially if you get time and a half or overtime. What else is there? Investing in the stock market? Rental properties? While the stock market has historically gone up there will still be ebbs and flows and if you end up in the ebb you could lose a good chunk of change.
I know people who retired relying on the stock market and are now working at hardware stories to keep their downsized home. And rental properties, first off you need money to invest and second off you need time to check on those properties and trust me that there will be tons of problems. Nothing is as simple or reliable as it seems at first. But that doesn’t mean these things aren’t worth it, just that you have to really think about it before diving in.
Most side incomes are going to take plenty of time before they start to go anywhere. They’re going to take more time and effort than you think and then generate less than you think. Sure there are success stories here and there where people quit their job after a year and this and that but don’t think that’ll be your story. That’s almost as risky as relying on winning the lottery.
Is their advancement to be had in your own work? In your job? Is there a way to make more money there? Sometimes there’s not, you’re tapped out for time and advancement. And you don’t want to risk spending more time and money on a better degree or certification for it to not pan out in the end, especially with money already so tight. So it’s natural to turn to side incomes. But understand that side incomes are becoming more and more competitive as well.
Look at the kindle market. Before you could write any old book slap it up there and maybe make some money. Now for fiction you have to have at least ten heavily marketed high quality books to start seeing some income and advertising went from a “nice to have” to an “essential if you want to see a dime” and the thing is it’s only going to get worse. And this is for essentially every niche, job, or side income out there.
Things are going to get tighter and tighter and tighter until there’s nothing left to squeeze.
What’s Best For You & Yours?
I’m not saying developing a side hustle is a bad thing, far from it. I’m just saying you want to put a lot of thought into it and beware the proclamations of the gurus who make everything seem so simple and easy. They’re selling you something, every time. Which is interesting, considering if whatever they’re selling was so good, why not just do that instead of sell information products? Sure sometimes just to make some extra money but other times it’s because the thing they’re selling doesn’t make the cash it’s selling the thing they’re selling that makes the cash.
And it’s never too late to learn sales. Something that I think will become more and more valuable in the coming economic times. Learning sales will never work against you, it’s not a cure all, but it is a highly valuable skill. And the closest skill to being a one on one investment for dollars. The more you know about sales and apply it the closer you’ll be to making good money. That much I do know. So learn sales and think about these things, it could save you a lot of hardship down the road.
