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5 Reasons Why You Should Have Other Sources Of Income

Finance

As of writing, the whole world still suffers from the negative effects of the pandemic. One of the hardest-hit facets is the people's economy and financial situation. Businesses have closed, schools are temporarily prohibited, offices are closed, and many people have been left jobless. If there's anything that this situation should teach you, it's the importance of having multiple income streams.

While you may think that your day job is more than sufficient to pay the bills, you have to go deeper. If your day job doesn't allow you to buy a few wants here and there or doesn't give you extra to set aside for your savings, look for another income source.

Technology today has made it possible to have multiple income sources, without disrupting your 8 to 5 job. Flexible hours are possible, work-from-home arrangements, and passive income opportunities, too.

That said, here are other reasons to further convince you about the importance of having other sources of income:

1. Offers You Job Security

As mentioned, the pandemic should teach you that it's not enough to have just one job and say that this gives you job security. Especially so if you're working in an industry that's considered non-essential. For example, the tourism industry has been hit hard that employees haven't even gone back to work after six months. Many of these are now scrambling to find other job opportunities.

With multiple income streams, you don't have to worry about this happening to you. When you lose your main job, you've still got a backup to get you by. Think of every job opportunity as a means to add money to your bank, and that's how you can say you've got job security: through diversification by doing some easy and flexible jobs.

2. Helps You Cover Rising Health Care Costs

This section applies particularly to those of you who are breadwinners of the family or have just started having a family. Take note that many expenses will keep on haunting you, especially healthcare.

It's inevitable for people to get sick. Even if you do have an insurance policy, remember that there are also expensive premiums that you'll have to pay. If there are so many of you in the family, this will only escalate the cost.

On the other side, if you don't have enough money to pay for insurance premiums, that should push you to have multiple incomes. If one member of the family gets sick, how are you going to pay for it?

Healthcare is getting expensive, and it can burn a hole in your savings or put you into debt if you're not prepared for these emergencies.

3. Opens Up Unique Work Opportunities

Even if you love your office job, this doesn't necessarily mean that it's your hobby or your passion. There may be other pursuits that you're more passionate about but never got the chance to push through with it. It could also be that these other work opportunities aren't enough to give you economic security if you were to use it as your main income source.

With multiple income streams, you've got more leeway to pursue your passion, even if it isn't necessarily a lucrative source of income. Because of the advancements in technology, the world is now full of possibilities. For example, if you wish to pursue art, you can make income out of it by advertising and selling it online. You can even work from home while taking care of the kids.

4. Allows You To Save

Now more than ever, the importance of saving cannot be over-emphasized. However, many still aren't saving enough. This isn't really because they don't know the importance of saving. The problem is that it's just difficult to balance all expenses out in a month to have enough to save.

As expenses will always keep increasing, this can put families in a sticky situation. When your kids grow, do you have enough on their funds to send them to college? As early as when they're young, have many income sources to beef up your savings account.

5. Helps You Pay Down Debt

If you've already incurred debt before having multiple income sources, that should teach you that you need to look for another job. There's very little way that you can pay off your debt if your current job is what has gotten you in this situation in the first place. Side jobs will give you that income to help you pay off debt.

Just make sure that once you pay off your debt and still have your extra job sources, don't put yourself in that debt again.

Conclusion

It's safe to say that working to have multiple income streams is no longer a luxury, but it's a necessity when times can be uncertain. When there are many income-earning opportunities on top of your office job, there's no reason why you shouldn't consider going for one.

One income source is a risky way to live, especially if the income you get from it is only enough to get you by daily.

After reading through, all that's left for you to do is to get started looking for those passive, flexible, or part-time work opportunities to add to your current job.

3 Min Read
Business

Five Essential Lessons to Keep in Mind When You're Starting Your Own Business

"How did you ever get into a business like that?" people ask me. They're confounded to hear that my product is industrial baler wire—a very unfeminine pursuit, especially in 1975 when I founded my company in the midst of a machismo man's world. It's a long story, but I'll try to shorten it.

I'd never been interested to enter the "man's" world of business, but when I discovered a lucrative opportunity to become my own boss, I couldn't pass it up—even if it involved a non-glamorous product. I'd been fired from my previous job working to become a ladies' clothing buyer and was told at my dismissal, "You just aren't management or corporate material." My primary goal then was to find a career in which nobody had the power to fire me and that provided a comfortable living for my two little girls and myself.

Over the years, I've learned quite a few tough lessons about how to successfully run a business. Below are five essential elements to keep in mind, as well as my story on how I learned them.

Find A Need And Fill It

I gradually became successful at selling various products, which unfortunately weren't profitable enough to get me off the ground, so I asked people what they needed that they couldn't seem to get. One man said, "Honey, I need baler wire. Even the farmers can't get it." I saw happy dollar signs as he talked on and dedicated myself to figuring out the baler wire industry.

I'd never been interested to enter the "man's" world of business, but when I discovered a lucrative opportunity to become my own boss, I couldn't pass it up.

Now forty-five years later, I'm proud to be the founder of Vulcan Wire, Inc., an industrial baler wire company with $10 million of annual sales.

Have Working Capital And Credit

There were many pitfalls along the way to my eventual success. My daughters and I were subsisting from my unemployment checks, erratic alimony and child-support payments, and food stamps. I had no money stashed up to start up a business.

I paid for the first wire with a check for which I had no funds, an illegal act, but I thought it wouldn't matter as long as I made a deposit to cover the deficit before the bank received the check. My expectation was that I'd receive payment immediately upon delivery, for which I used a rented truck.

Little did I know that this Fortune 500 company's modus operandi was to pay all bills thirty or more days after receipts. My customer initially refused to pay on the spot. I told him I would consequently have to return the wire, so he reluctantly decided to call corporate headquarters for this unusual request.

My stomach was in knots the whole time he was gone, because he said it was iffy that corporate would come through. Fifty minutes later, however, he emerged with a check in hand, resentful of the time away from his busy schedule. Stressed, he told me to never again expect another C.O.D. and that any future sale must be on credit. Luckily, I made it to the bank with a few minutes to spare.

Know Your Product Thoroughly

I received a disheartening phone call shortly thereafter: my wire was breaking. This horrible news fueled the fire of my fears. Would I have to reimburse my customer? Would my vendor refuse to reimburse me?

My customer told me to come over and take samples of his good wire to see if I might duplicate it. I did that and educated myself on the necessary qualities.

My primary goal then was to find a career in which nobody had the power to fire me and that provided a comfortable living for my two little girls and myself.

Voila! I found another wire supplier that had the right specifications. By then, I was savvy enough to act as though they would naturally give me thirty-day terms. They did!

More good news: My customer merely threw away all the bad wire I'd sold him, and the new wire worked perfectly; he then gave me leads and a good endorsement. I rapidly gained more wire customers.

Anticipate The Dangers Of Exponential Growth

I had made a depressing discovery. My working capital was inadequate. After I purchased the wire, I had to wait ten to thirty days for a fabricator to get it reconfigured, which became a looming problem. It meant that to maintain a good credit standing, I had to pay for the wire ten to thirty days before my customers paid me.

I was successful on paper but was incredibly cash deprived. In other words, my exponentially growing business was about to implode due to too many sales. Eventually, my increasing sales grew at a slower rate, solving my cash flow problem.

Delegate From The Bottom Up

I learned how to delegate and eventually delegated myself out of the top jobs of CEO, President, CFO, and Vice President of Finance. Now, at seventy-eight years old, I've sold all but a third of Vulcan's stock and am semi-retired with my only job currently serving as Vice President of Stock and Consultant.

In the interim, I survived many obstacles and learned many other lessons, but hopefully these five will get you started and help prevent some of you from having the same struggles that I did. And in the end, I figured it all out, just like you will.