If we’ve learned anything in the last decade, it’s that no job is safe. As soon as that reliable 9-5 job disappears, too many people find themselves in serious financial trouble. That’s where having multiple income streams can come in!
Millennials and Gen-Zers have a huge opportunity to create multiple streams of income by creating work-from-home jobs that suit their lifestyle. And now, more than ever, having multiple streams of income is a necessity.
Check out the five reasons below on why it’s essential that you consider having multiple income streams.
#1 Tax Benefits
Gone are the days when you could work for a single company for 40 years with the expectation that they would then take care of you until you died. Now, you need to have your own retirement plan. With student loan debt and changes to the job market, we all have to become more self-reliant when it comes to retirement.
The new Tax Cuts and Jobs Act of 2017 actually benefits those who receive income from self-employment through work-from-home jobs and online businesses—if that’s you, take a look at the potential tax benefits! There is a maximum cap, and you should review all the details to see how your tax bill might change. Check out the article What You Need to Know About Side Hustles and Taxes.
#2 Long-term Wealth
Making money in the short-term is great, but building long-term wealth ensures your family’s security for decades, if not generations. Many work-from-home jobs can be sustainable and scalable income generators.
Having multiple income streams can help you build long-term wealth without having to work harder. Instead, you can work smarter and leverage your time to achieve financial freedom. It’s a fact that the work you put in now with your side hustle or online business can have enormous long-term effects.
#3 Reducing Risk
Failure is always a possibility, but feels even more dangerous to those of us seeking entrepreneurial opportunities. Younger people, too, are less likely to be affected by risks than someone who is older and has more to lose.
The best time to take risks is when you’re younger—the more mistakes you make, the more you’ll learn. Having multiple income streams is also helpful for reducing the cost of those mistakes, because it means you always have other resources to fall back on if something doesn’t work out.
#4 Job Security
When we think of job security, most of us think of a steady paycheck, social standing, paid days off, and medical benefits. Until recently, job security looked like getting up early, driving to work, climbing the corporate ladder, and retiring somewhere warm.
With emerging technology and other changes to the job market, this traditional mindset no longer applies. Increased automation means many formerly steady jobs can no longer offer security.
However, when you have multiple streams of income, your job security isn’t tied to a single source of income. Being laid off from one job no longer has to plunge you into financial crisis! Technology has made it possible to build a viable and secure living from the comfort of your own home.
Online business owners are also able to benefit from low start-up costs to tap into a variety of markets and to create any number of opportunities for remote work. Each potential job opportunity means a new income stream, and that’s where job security is these days lives: in diversification.
#5 Debt Repayment
Millennials graduate with more student loan debt than any prior generation, and because of that fact alone, many young adults are questioning the value of a college degree. For those of us battling with student loans, multiple income streams are essential.
The extra income from additional work can help you pay down debt: the more money you have coming in to throw at those loans, the faster they’ll be paid off. Paying off any debt (whether it’s student loans, credit cards, or anything else) is vital to your long-term financial health.
Many young people have already had or will experience problems working in a traditional 9-5 setting, whether it’s due to a lack of experience, changes in the job market, or company restructuring. Despite these problems, many people still think working in a traditional job is the only way to earn an income.
Having one source of income is good, but having multiple income streams can be even better! In addition to the benefits listed above, having multiple income streams also means you aren’t slaving away for a single company that doesn’t care about you—instead, you get to take ownership of your career.
Have you ever had multiple jobs? What was the most beneficial aspect of having multiple jobs? City Girl Savings would love to hear from you! You can follow us on Instagram, Facebook Group page and Twitter @citygirlsavings.