9 Reasons Why You Should Consider Creating Multiple Income Streams. Here are nine simple reasons why building multiple income streams is so important. Each item listed below is an example of how alternative income sources can be used to lesson the risk of living on a single income. 1. Whether you are in favor of the health care reform or not, chances are you are feeling the pinch of higher health care costs. Adding an extra income source can go a long way in paying for things like higher prescription costs and unexpected medical costs. 2. Unemployment How safe is your job? Lets face it, no job is really ever safe, especially in a tough recession. Having other sources of income can help you deal with a job loss much easier than being caught off guard. Even if your other sources of cash cant cover all of your monthly expenses, it can still give you time to figure things out. 3. Paying for College How much are you saving for your kids college? Instead of putting your retirement at risk by saving up for your childs secondary education, why not create an alternative income stream to help out. Having multiple streams of income bringing in cash every month can help ease the burden of paying for college. 4. In order to build true wealth, you must be able to live within your means. If it is impossible to cut your spending any further, or you just dont want to sacrifice anymore—create a new source of money. There are only two ways to live within your means -- either spend less or make more money. 5. Pay Cash for Purchases How many times have you been able to pay cash for a car or could pay for a large home improvement project without taking out a loan? A second or third income stream could be used to save for these types of purchases so you dont have to take out a loan and pay any interest. What a concept—pay less interest and keep more of your money! 6. Build a New Income Stream What better way to use your extra income then using it to grow another income stream? If you dont need it to survive, then why not use your extra income to your advantage to increase your monthly cash flow and become financially independent? 7. Pay Down Debt Paying off your mortgage, vehicle, or credit cards is a great use for an extra income stream. If you can avoid paying tons of interest on a loan by making extra payments on existing debt, then you could be on your way to financial freedom. 8. Diversified Income Sources Any good stock broker will tell their customers the number one rule as an investor is to build a diversified portfolio to reduce risk. If you would diversify your investments, why wouldnt you do the same with your income streams? Creating multiple income streams allows a person to diversify the various cash flow sources that are coming in. In the event one dries up, then there are other sources of income to lessen the loss. 9. When was the last time you got a raise at work? Even if you have received one in the past year, there is no guarantee you will be getting one next year, especially the way the economy is behaving. Do yourself a favor and take control of your finances by creating multiple streams of income. That way you have the power to give yourself a raise anytime you like! Watch this video→ Make Another Stream of Income. youtu.be/1vZP7Zwg0Io
Posted on: Fri, 21 Mar 2014 18:55:38 +0000
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