Having multiple sources of income is the most underrated aspect of financial planning.
Whenever somebody asks me how I earn money, I face a dilemma. There’s so much to mention and it just confuses other people. They think I am lying or just don’t want to share. The truth is I can’t share how I earn money so easily for I don’t like to keep all my eggs in one basket.
My CA just told me that I earned 1.75 lacs in the last three months. For a girl who comes from a middle-class family with very average income scale, and who passed out from not an elite engineering college, it’s a good number; especially when I lost my major source of income six months back. Well, it is for me, at least.
I think life has been good so far, even then. What do you think?
Imagine how my life would be after leaving that major project if I had no other source of income? 1.75 lac rupees in 3 months? I feel I would have struggled to even pay the rent of my 2BHK rented apartment in Delhi.
You never know what things go wrong or when they go wrong. It maybe the work pressure or just a mass layoff! It maybe a power fight with your colleague or conflict of ethics – anything can hurt your major source of income.
Do you have a plan for what happens then?
A lot of us don’t have it in our early 20s. We live by paycheque to paycheque. Don’t we? A lot of us don’t even know about it. It’s a fund that you keep for when things go wrong and it helps but it often serves as an excuse for people to not have multiple sources of income.
Why have multiple sources of income?
What if your emergency fund doesn’t exist? How will you pay the bills when your major source of income (your only source of income) goes away?
- What if you are just not feeling alright to look for another source of income right after you lose one? When I left that major project in January 2017, I just didn’t want to work on those kinds of projects anymore. I needed a break! I was able to have one for I had other things supporting me.
- Multiple sources of income facilitate financial planning and savings. If you have your major source of income covering your bills, you can use the income from others to save for that emergency fund, retirement fund, marriage fund, higher studies fund and so on.
- Similarly, multiple sources of income will help you when you want to start a new business or just that hobby. I use my income from my booktube channel to boost my hobby as a booktuber. I reinvest all the money into the channel and books without making myself feel I am wasting my money.
Suggestions of multiple sources of income
I don’t know how convincing I sounded for my motive to write this post wasn’t to inspire anybody. It was to inform that having multiple sources of income is important these days. If you get the point, you’re lucky. Here are a few suggestions to help.
- Take up a part time job.
- Start a part time business.
- Invest in stocks and mutual funds.
Those are a few suggestions from my side. For me, it’s a combination of my major income from providing content marketing services, blogging services, my blog, my book tube channel, mutual funds and the occasional consulting gigs I take every once in a while.
What’s it going to be for you?