Multiple Sources of Income
Most of us in an older generation viewed our job as the source of income, and all expenses had to fit within that limit. A younger generation is more creative and savvy in seeking side hustles, whether by choice or by economic necessity.
Relying on one source of income is risky.
Almost everyone has expenses which rise to the level of income. There could be several reasons, and it's not always lifestyle creep. That is a concern, but often the bills just increase because of inflation, life demands, family situation, health concerns, etc. It's not always a choice.
We live in a dynamic economy. Layoffs happen, justified or not. Industries come and go. Consumers change tastes, and companies merge or get bought out.
At the macro level this is healthy.
At the micro level it can be devastating.
What are some strategies to mitigate the risk?
Our model is based on three prongs: job, side hustle, passive income. We'll talk more in detail about each of these in another article. But just pause for a moment and think about whether this would be a prudent path for you.
Can you manage a side hustle? What would that look like for your family, your health, your need for down time? Would the payoff be worth it?
What would it take for you to get a raise at work? That is a another topic on its own, but now is a good time for a reminder that the easiest way to increase income is to get paid more for the job you are already doing.
And what about passive income? There are various options depending on your scenario.
But if you think about a three-pronged approach, it doesn't mean you can do it all right now. But taking a few steps at a time over a period of time can get you moving in the right direction.
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