Authored by Jackie Acosta in Personal Finance
Published on 12-12-2008
Back in the day, people are happy and content with holding only one job and relying on their monthly paycheck for their only source of income. After all, it has proven to be a steady source that supplements their lifestyle, so why look for other ways to make money? This is a very traditional way of viewing one’s personal finances, but times are changing, and one must consider ways to adapt to these times. While it seems daunting and questionable, having other sources of income has several advantages that are beneficial to those who are willing to give it a try.
With the current situation of stock markets around the world, there is unrest in several corporations in lieu of employment, as the possibility of downsizing and layoffs seems more plausible. In reality, there are only a handful of jobs that offer a lifetime of security and no matter how stable one’s job is, the chances of being let go due to unfortunate circumstances still exist, and one must prepare for it. Dependency on a monthly paycheck alone can be risky—what will happen if the paycheck stops coming? Having other sources of income can give ease of thought over being laid off, and it might even give you enough reason to look for other more lucrative ways to earn money.
Moreover, being laid off is probably not the worst that could happen to anyone. Think about the possibility of being involved in a freak accident and not being able to return to work, resulting in losing the only source of one’s income. It is important to have extra money to cover unforeseen expenses, such as those not covered by insurance, saving one from potential debt or even bankruptcy. If there is extra money that one can get from places other than their paycheck, the burden of having to worry about how to pay for bills will be lessened.
Last but not the least, additional income helps one put together a better retirement saving account. A retirement fund guarantees a comfortable, worry-free life well beyond old age, and if one does not prepare well enough for it, then he or she might as well prepare to work until their golden years. Multiple incomes allow one to put together an agreeable amount for a secure future, and might even allow workers to retire early or on time. Again, depending on a paycheck to augment one’s retirement fund should not be the only option, as these paychecks do not come regularly until we retire. It is better to be safe than to be sorry.
Where can one find other sources of income? Holding another job is another option, but often for just a few people. Some turn to investing in stocks or venture capitals to augment their income, while some go into the real estate business. There are hundreds of ways to find additional income; one just has to be resourceful and creative. Remember, additional incomes should not replace the current and main source of income, but just supplement it.
