_{image edited by me using canva}

We have heard a lot about diversifying our investment, but have we ever thought about how it's possible to sustain investing in different assets when we rely on only one source of income? Even when it's not enough to sustain us, that is where the need for an additional source of income arises.

Having multiple streams of income simply means having more ways like a side hustle to bring in money, it acts as a backup to your main job.

As to everything, there is always the good and bad side of it, let's check out what are the advantages and disadvantages of having multiple streams of income.

Advantages

• Extra source of income or side hustle can act as a fallback plan or plan b in case of job insecurities in the future, if something unexpected happens to your main job, you will have a choice to fall back on, so therefore your income won't suffer drastic pause and all of your other investments too. It is easier to rise up on your feet quickly after a loosing a job because you have another option to fall back to.

• Having more sources of income increases our ability to invest more because our investment can also act as a source for us, the more we invest the more financially secured we can be in the future, alongside the reduction of risk associated with relying on one source alone.

• having another source of income broadens your knowledge of other fields, as you get to learn about other areas of focus, you will be surprised at how much knowledge you can acquire.

• Your savings will get an increase when you add other incomes as they can help cover up some daily expenses and more.

• Setting up attainable and realistic goals can easily be done with more income around. And the change we desire will move at a faster pace compared to when relying on one source alone.

Disadvantages

• It can be hard deciding on what to start on, as it will involve a lot of critical thinking, also sometimes diversifying from our area of interest.

• Doing our normal 8 am-5 pm job alone can be so tiring and takes a toll on us, distancing us from our family and friends, also we hardly have time for other fun activities, adding more streams of income can make all of the above worst but since it's all about growing yourself financially for a more secured future, shouldn't it be worth sacrificing for the time being, but make sure to set some time, especially for your family.

Tips on how to create an additional source of income for yourself

• diversify your main source, most of us forget that our main job can also have some smaller means around them to earn more. For instance, as a fashion designer, I earn from making bespoke dresses, to further increase my income, I sell fabrics which most times are bought from me and still given to me to recreate a dress with, therefore I earn both ways, selling my product and receiving payments for the services rendered to them. A double means, nice.

• Investment; a whole lot of investment can in turn be a side hustle for us, bringing daily, monthly or yearly percentages that can act as savings or help in beating the daily expenses. It gives us a form of edge and assurance.

CONCLUSION

Getting to start another thing that brings more income can be challenging at first, but with time and determination, Its possible. Also the risk associated with having just one source of income is decreased. You can start with passive job that doesn't require much hard labor to pull through.

Thank you for reading❤❤