Today counting on one income source is very risky. One of the fact that I learn from current recession is that nothing is really secure even our jobs. People look for a job because of its security. But it is not as secure as what we used to think like. As you can see, if anything happens in our economy, our jobs will be affected as downsizing happens in many companies. Although we can recession-proof our jobs but for long term solution, we must know how to have more income sources. It is too risky for us to depends on 1 income source.

Just like investing and retirement planning, we must diversify our income source so that our income will not 100% collapse just in case anything happens.

The Benefits to Have Multiple Income Sources

Having more income is really a big advantage for us. With more money,

1. We can pay down our debt faster. We can use the money to pay down the credit card debt, mortgage, personal loan etc. This will let us to be debt free faster and easier.
2. We can have more money to invest. With more money, you can have more choices for your investment plan. You can invest in those high yield investment or even invest more money to build up for your wealth. With this extra money, you can take more risks to have more returns too.
3. Save more money faster. You can put all the money into your saving account to save money. You can save for your children college fund or even your retirement fund. You can also build up your emergency fund too.

In good time, extra income sources simply let us have more money to invest and build our wealth, in bad time, we have multiple income sources to support our life. This is why I always say that multiple income sources are essential for everyone of us.

What Are The Important Requirements To Have Multiple Income Sources

Currently, we are making money because we are providing some kind of value to others. People are paying money to exchange for our values. It can be services, products, knowledge or time.

So if you want to have multiple income sources, you can:

• Provide Multiple Values. Maybe you are knowledgeable in different area. Then you can provide different values to different kind of people. For example, you can repair computers as your job, get a freelance programming jobs at night time and provide computer tutorials to children at weekend. This can let you have multiple income sources.
• Provide The Same Value in multiple ways. This is slightly different from above. You know nothing but only your expertise. So you can concentrate on your expertise and provide your value in multiple ways. For example, you are good in cooking. So you can work as a chef in local restaurant, then you can write and sell some cooking recipes, you can also build a site that about cooking and earn money from the internet. All the ways are build around the same expertise but in different ways to provide the value.

Personally I prefer the way #2 to make more money. By focusing on 1 expertise, you can really improve and become an expert on a particular field. So you can provide even more value to people and make more money because you are an expert. Besides that it is also easier to control 1 knowledge rather than different knowledge. Just like what people said, 1 knife that can cut is better than 100 knife that is blunt.

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