Multiple income streams are essential in today’s ‘Yoyo Economy’. Why put multiple eggs in a single basket when the road ahead is rocky and long? Whilst many people scrimp from paycheque to paycheque, a successful few have learnt to minimise financial stagnancy by building and maintaining varied investments.
Read on to discover some of the reasons why the modern man needs multiple streams of income like never before.
1. Male Esteem – It’s no secret that male esteem is often linked to productivity: earnings, knowledge and usefulness. Whilst ‘personal esteem’ need not be based on one’s achievements, the modern man can gain great fulfilment by turning meaningful hobbies and interests into multiple income streams.
2. Job Security – Is there really any such thing as job security these days? According to the UK’s Office of National Statistics, the current unemployment rate is circa 8.0 percent of the economically active population. With redundancy featuring often without prior warning, wise men no longer rely on a single source of income.
3. Slow Progression – The best time for salary negotiation is at entry level. Afterwards pay rises are often abysmal and progress can be slow. Men, who want to earn good money without the debilitating pressures of unrealistic targets and deadlines, must think seriously about creating multiple income streams.
4. Pension Plans – People are fast losing confidence in government run pension schemes. Just think, do you really want to depend on relatives for food, shelter and healthcare when you retire? If the answer is no (as I suspect it is), then start now to create new income streams to supplement your pension fund.
5. Good Living – Once upon a time, all we needed were the bare necessities of life. Today luxury holidays, designer clothing and electronic gadgets allure. Even if your needs are basic, can you really afford to play Ebenezer Scrooge with the women and children in your life? Reduce the pressure to provide out of a single pay packet by exploring avenues for multiple income streams.
6. Inflation Costs – No matter how well we manage our income, inflation costs can stretch even the best pay packet thin. When the costs of living increases better than wages do, multiple income streams differentiate men who stay afloat financially and men who merely get by.
7. Emergency Expenses – The dynamics of many household budgets are so delicate that if something major goes wrong (a sudden job loss or an accident which the insurance policy can’t cover for instance), finances can become painfully stretched. Unfortunately financial pressure often leads to tension in relationships as well as emotional strain. After tax cuts, a single income (no matter how good) will often struggle under all the demands of modern living. So give yourself more peace of mind by creating multiple income streams.
8. Time is Money – We all have 24 hours in a day and rarely can anyone do without 5 hours of sleep (at least)… on a long term basis. Activities such as commuting, housework, parenting and socialising also eat into our free time. Overtime restrictions mean most people are not allowed to work more than 40 hours a week in Europe (even if they’re eager to do so). To maximise time, the discerning individual needs to earn passive income from a number of sources rather than burn the candle at both ends.
9. Diversification – Life is dynamic: industries wane, economies evolve and people change their minds about what they really want. What happens to a small business owner who loses one or more major clients at once? What happens when demand for certain services become obsolete? The more income streams one has; the less devastation one will experience when any of those streams dry out.
10. The Fun Factor – After the initial wooing period, many men soon become bored with their jobs. Multiple income streams help to maintain a sense of adventure, excitement and achievement in the working life.
So How Does One Create Multiple Income Streams?
The secret is to discover what you enjoy doing and relentlessly woo people who can pay you for doing what you do really well. Meet the needs of others by harnessing your knowledge, expertise, physical and human resources.
For instance, Des (34) worked as a teacher at a renowned writing school in New York City. However, his fiction writing students had a peculiar problem because the school did not provide a facility that allowed their entire novels to be read and critiqued by fellow classmates. Despite several petitions to the authorities, the most each student could submit for critiquing was a measly 2 sample chapters.
Des kept in touch with his best students after they graduated, then eventually setup an online writing workshop which would meet the budding writers’ needs. When he was done, he invited all of his students (past and present who wanted their entire novels read) to enrol at his ‘private fiction writing classes’ for about $700 per session. The slots were filled up in no time! In addition to his day job at the writing school, Des now earns regular extra income running various online writing workshops. Now, that’s what I call Creativity and Sense!
Richard Branson may have started off with Virgin records but over the years he has diversified into the airline, telecommunications, beauty and leisure industries. In the areas where he has lacked knowledge, Branson has hired or collaborated with the experts. For instance, if you don’t know much about real estate but know a trusted friend who does, think of ways you can work together and what you can contribute to the partnership. By turning meaningful interests into multiple income streams, men (and women) are more likely to stay afloat financially rather than merely get by.
Do you need help creating new income streams? Contact Us and we will be glad to talk to you about how to go about this.
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