By Mary Beth Storjohann via Iris.xyz
There’s a lot of talk in the world of personal finance about the importance of having multiple income streams. On a high level, having multiple streams of income helping you reach your financial goals sounds pretty great. However, it can be tough to know where to start – especially if you’ve only ever worked a traditional 9-5 job. When you start building a strategy for creating different income streams, it’s important to know a few different things:
1. Why these different streams of income are important, or what goals they’re going to help you achieve
2. What types of income streams are available to you
3. What types of income projects make the most sense for you and your family
As always, the most important thing on this list is your why.
Why Should You Have Multiple Income Streams?
For most people, the income they receive from their full-time job is enough to cover most of their budgeting basics. Some months may be tighter than others, but they often feel stuck because they’re not sure how to consistently live more comfortably without asking for a raise every 3-6 months. This is where having multiple streams of income can help.
Developing different streams of income empowers you to reach your goals more quickly, protects you against the possibility of losing one income stream, and helps you to grow your wealth for the long-term. All of these things can be part of your why for developing multiple streams of income, but you should also think through tangible reasons and benefits that are relevant to you.
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