How safe is your job? What would happen if you lost your sole household income? Scary thought isn’t it? You are not alone in worrying about how you would still pay your bills and cover your household costs if you were to lose your primary source of income. These days, it is extremely important to find ways generate multiple income streams.
Remember the market crash a few years ago that gave rise to unemployment rates in the country? How many of those people do you think had a second income or even a third income stream? My guess is, probably not enough. We’ve all been told growing up make sure we go to college and get a good job and all will be right in the world. But no one really prepared us for the possibility of losing that job. How will we survive? Unemployment doesn’t really pay enough. So what’s the answer? Multiple streams of income. Let’s looks at 5 reasons why this is so important.
Build An Emergency Nest Egg
I’m sure you’ve heard of the term “emergency fund”. You know, in case your car breaks down, or the water heater in your home explodes. If you only have one income and somethings happens, what do you do? I’m sure we all rob Peter to pay Paul, but inevitably, that gets us into trouble. Having a second income stream where we can put cash away can help whether the storms a bit. This way, you are not using your primary income source to pay for emergency repairs.
Jobs aren’t as safe anymore as they once were. There once was a time when people would stay 20 years with their company. Not anymore. Job turnover rates are higher than ever before. Companies have found a way to outsource certain functions for cheaper labor and cheaper wages. If you were to get laid off today, would you be able to continue paying your bills and still put food on the table? How long would be out of work? Another way to earn an income can help bridge the gap until you are able to find another full time position.
Pay Off Debt
Having another source of income can help pay off high balance credit card debt or pay off the car loan faster. Maybe you want to put a little extra every month to the mortgage to pay that down faster. Another income stream can help keep interest rates low and get you one step closer to financial freedom.
Purchasing A New Home
If you are in the market for a new home, having another income source can certainly help get you on your way to home ownership a lot faster. Gone are the days of zero money down loans. Or at least there are fewer of these types of loans now than a few years back. Nowadays, we need a minimum 10 percent down for a home purchase. Having only one source of income can make this very difficult.
Increasing Health Care Costs
We have all felt the pinch of rising health care costs. It takes almost literally an arm and a leg to pay for health care services, regardless of whether you have health insurance or not. Some are fortunate enough to have company sponsored health care. But again, what if you are laid off? What if your company doesn’t offer health care? What do you do? Adding another income stream can help pay for these costs.
It’s Time To Take Back Control Of Your Finances
We all need to start looking into ways of earning another income to supplement our primary source. This will help you take back your life get out from under lady debt. If something unfortunate happens to your primary source of income, you know you’ll be fine because you one or two more streams of money coming into the house.
If you are looking for a proven method that can provide another income stream click here. Let me know your thoughts on reasons why having another stream of income is so important.