Earning money from just one job could leave you in a horrible place if you are fired or made redundant. Unfortunately, this happens to thousands of people every year. However, being laid off is not the only reason you should consider bringing in a little extra money. Here are a few signs you need to have multiple income sources.
1. You do not have a savings account
You should have enough savings to pay all expenses for at least six months if something happens to your job. If you do not have that safety net, it is a good time to consider earning more money to save up. Unfortunately, many people do not realize just how precarious their jobs are. You could end up without work at any point.
2. You are tired of just making ends meet
Living paycheck to paycheck is never fun and it’s not necessary, either. Instead of scraping by each month, you could add an income stream or two and have extra to put into a savings account.
3. You are bored with your job
Most people can’t afford to simply quit work because they are no longer excited by their position. However, if you can earn more, that money can help you gain the independence you crave. Another income stream may also provide more excitement in your life.
4. You have debts
Do you owe money on student loans or credit card bills? Debt can be crippling, but you will be able to pay it off faster if you have more money coming in. Start by paying down one debt at a time. Whether you choose the smallest debt first or decide to tackle the highest interest loan first, the trick is to start eliminating what you owe.
5. Your insurance is not good enough
If your health insurance leaves something to be desired, you might want to have some cash on hand for emergencies. In order to do that, you need to earn enough to create your emergency fund.
6. You are living beyond your means
When you find yourself borrowing money and using credit cards to keep up with expenses, it is time for a change. Rather than cut all expenses, you can try adding income streams. Instead of living without your favorite things, you can simply increase your income to match your spending level. Just be careful, since it is easy to end up spending more as you earn more.
7. Your dreams are in the distant future
Are you thinking of buying a home? Going back to school? If your dreams are always far off in the future because you do not have the money to fulfill them now, consider adding some income streams. Extra cash now will let you pursue your dreams that much sooner.
8. Your retirement fund is too lean
Saving up for retirement is something that fewer and fewer people are doing. One job just is not enough to put aside a little something for later in many cases. With multiple income streams, it is possible to set up that retirement fund and build it steadily over the years. You will be glad you have it when it comes time to retire.
9. You have children
Your kids will cost quite a bit of money over their lifetimes. If you plan to send your kids to college or university without taking out a loan, now is the time to start saving up. A few additional income streams could be very helpful.
10. You want to take a vacation
Whether you want to hit the beach for a weekend or dream of a month in Europe, traveling requires money. When your regular job just barely pays the bills, there is little chance of taking that vacation. Additional money needs to come from somewhere to pay for your travels.
Adding more income streams is the best way to establish stability for yourself and your family. There are plenty of options, so you can choose any that work for you.