The idea of income diversification is fairly uncomplicated: you generate multiple income streams that are independent of each other. For a majority of us, income comes from a day job and it might be the only source too, whether it’s a part-time job or a full-time job. But a few others add revenue streams to support their income and escape the downsides that come when you rely too heavily on a single source. Experts have time and again suggested that creating multiple revenue streams is a great way to shore up finances. And likewise, the 23-year-old entrepreneur, Scotty Huss, shares 3 reasons why we must diversify our income streams.
Ever-increasing healthcare costs
As someone who ventured into the entrepreneurial world at an early age, Huss, in no time understood the importance of having multiple sources of revenue, be it for funding a business, paying for college, or clearing debts. Looking at the rising healthcare costs, Huss suggests, there are chances each one of us would begin to feel the pinch of higher healthcare expenses, and here’s where adding an extra source of income can come to use. He adds that when it comes to paying for things like the unavoidable monthly medicines or unexpected medical costs, the income coming from a side gig or part-time job can ensure you’re less burdened.
Being a real estate investor, network marketer, and entrepreneur himself, Huss firmly advocates the idea that we must follow our dreams and passions. He adds, “What is it that holds us back from going after our true calling? Probably, it’s because we are tied to a single job, mainly for financial reasons. But depending on one source of income to cover our necessities is a less viable option. And thus, identifying opportunities, particularly in the online world, say creating an online business or sourcing work-from-home jobs in writing, finance, or marketing can prove to be very lucrative.” The other benefit of these opportunities, he says, is that we can learn while still being employed at the full-time job. It may take long weekends and working late nights, but you can eventually pursue your side hustle even more, adds Huss.
“It can be tough to think long-term when planning for the next week itself seems overwhelming,” says Huss. But he recommends, the efforts we put today into our business or side hustle can reap enormous long-term benefits and capital gains. “A lot of the potential remote working jobs can be sustainable as well as scalable income generators. These are the kind of jobs you can establish at the side of your present job, and expand to the point that you’re able to quit your 9-to-5. The idea is to work smart and wise, and leverage your time to attain financial freedom earlier,” he shares.
If you notice closely, millionaires on an average maintain at least seven streams of income. They’ve understood that creating multiple streams of income and diversification is the key to not just long-term wealth creation, but also in achieving financial freedom.