Why do we need multiple income streams?

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Why do we need Multiple Income Streams?

Five reasons why we need Multiple Income Streams – there are plenty more…

Millionaires, on average, have seven streams of income. They’ve learned that diversification and creating multiple streams of income is the key to long-term wealth creation. From “Trending Topic 11” – we’ll discuss some hard-core ways of earning passive income – the way millionaires do. Trending Topics 3 to 10 are there to assist the newbies into the exhilarating world of Business Owners.

My personal favourite is by far “Trending Topic 3 – “Your skills, knowledge, experience and passion are what the world needs”

Should you want to skip the Trending Topics for the Newbies and want to go straight for the discussions on hard-core ways of earning passive income – kindly just click on the link below, complete your detail, submit and we’ll send you the articles on the “Trending Topics” in an email

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I need to be upfront and honest with you – it requires immense effort, significant hours, commitment and dedication to build several streams of income – passive income where possible – BUT – it can be done.

The financial independence you’ll enjoy in the end is well worth the effort.

Why? Do you ask, is it necessary to have multiple income streams?

If there’s anything we can learn from the last decade, it’s that no job is secure. It is a known fact that the economy takes wild swings at times, and unfortunately for most people, their only source of income is from their day job. When that reliable nine to five job disappears overnight, serious financial trouble stares one in the face.

We are in the fortunate position that new opportunities created by the freedom the internet affords us, offer us the luxury – that we can create income opportunities to suit our lifestyle. In most cases we can work from anywhere – as long as we have access to the internet – and nowadays that is everywhere, for most of us.

Take my word for it – now, more than ever, having multiple streams of income is a necessity and not a luxury.

Five reasons – there are more – why I believe it is crucial to develop as many income streams as possible:

1. Job security

For many decades the norm was – get up early, drive to work, do your utmost to climb the corporate ladder, be used and abused to fill the purses of others – and retire there at the age of 65. Individuals working from home were frowned upon – working from home was something relegated to those with less skills, knowledge and experience.

How things have changed! Technology forces companies to pivot and companies that used to be considered “safe” to work for, are being forced to downsize or close altogether.

Let’s have a look at the amazing effect Amazon has had globally. Accessible from across the globe, no walk-in retail store – yet how many notable stores – that our parents and grandparents used to frequent, and even ourselves – have you noticed, how many have announced layoffs?

Being employed by a large corporation no longer equates to job security, however – there are essentially endless opportunities for those wanting to start businesses online, working from home.

The online opportunities are so diverse, enabling online business owners to benefit from low start-up costs. It is easy to tap into a variety of markets. If you have the will and the drive, you are able to create a significant number of passive income streams while working from home. Each potential job opportunity means a new income stream. This diversification denotes to job security nowadays. When one income stream goes through a dip or collapses when the economy turns, there are other income streams that see you through.

Diversification is what we should aim for – be it our own business, investments, rental income or the stock market.

2. Unique opportunities

The world is our oyster – the world needs people that have come alive. What makes one come alive? When we do what we love…. follow your passions and dreams, and your dreams will become reality.

Sit back and question yourself – what exactly holds you back from starting your own business?

Be honest – list your reasons for not going for it with gusto.

Is it time? money? ideas? energy? passion?

Relying on one source of income to cover necessities, is not the answer in today’s life.

List your skills, knowledge, experience – but mostly your passions! and find something within the combination of those – the world needs it. We all want to get to the point where we are free to pursue our passions – turn those passions into profits.

The online world is full of possibilities – be it marketing, art, writing, finance, photography – get involved, skill up, use the internet – create online courses, build a following, sell your products and services – there is a place for each of us in the online world.

A great “Plus” about these online opportunities – you can learn about and start your own online business, while you are still employed elsewhere. It will certainly require additional hours, but when you enjoy what you do, and you focus on the long term benefits – hey! Who will complain?

3. Ability to stick to your values

This may sound like a weird reason to you, but – more than ever before, youngsters are sticking to their values. We may not always agree with those values, but try and go against their beliefs?

It may be good for the more mature generation to also start considering – do I sacrifice myself and what I believe in – for the sake of job security?

Maybe you work for a company that may require a compromise – where does that leave you? Do you stick it out at work, suffer your conscience, get home and kick the cat?

You either have to sacrifice your integrity, stay put and be depressed – or quit.

Enabling yourself to rely on your multiple income streams – including online businesses – enables you to live life by your own set of morals and values. This results in less stress and, ultimately, greater satisfaction.

Working from home – or wherever you have access to the internet, allows parents to stay home with their children, those who love to travel may, and technology enables us to build businesses where the integrity of the business is supported by our own moral code.

4. You can take risks

Do you ever take calculated risks?

Jim Rohn said “If you are not willing to risk the unusual, you will have to settle for the ordinary”.

If you’re one of the millions that are prepared to settle for the ordinary – so be it, as long as you are happy, and provided for, for the rest of your life.

If the ordinary does not do it for you, and you feel frustrated, disappointed and depleted – take that (calculated) risk! Do nót put all you eggs in one basket – I’m so nót saying – take your  retirement money and invest it all in one small business – no, that is not a calculated risk.

Sixty is the new forty. People are active and have immense energy, up to in their late seventies and at times even early eighties. Those born in the sixties, fifties and earlier, are all very competent as far as technology goes…. and – there are masses of courses, guidelines and instructions showing you exactly what to do – no matter what you want to do.

Go ahead and see for yourself – Google “How do I change a tyre”. Numerous results – showing you exactly how to do it.

Investing, letting property, changing careers, starting your own online business – all have a certain amount of risk to it – but it can be done.

Having multiple streams of income, makes it just so much easier to take a calculated risk in one area.

We’re all aware of the possibility of failure. I have met so many successful business owners, who share their stories of years of failure before their breakthrough. When we fail – all we need to do is – take a step back, identify where we went wrong, learn from it and do things differently the next time around. Get advice from those who have been there. Successful people are mostly willing to share their experiences with you

5. Tax benefits

When owning a business – just about all your expenses may be deducted from tax. With the new tax laws in South Africa – when you earn less than R500k per annum, you’re tax exempt. Way to go!

I am no tax expert – and this is one area where I strongly recommend – get input from a tax expert. It is imperative as a business owner to stay on top of the tax laws, as well as any changes in those laws – that’s what tax consultants are there for.

A guide to company tax in South Africa

Now… I’m giving you a couple of “Bonus Points” over and above the promised five

6. Pensions – do they stay abreast of the Cost of Living?

A decade or two ago, it was “safe” to work for a company for three decades and then retire, trusting that they will take care of you for the rest of your life.

Nowadays we need a retirement plan. Again, it is good to consult with a knowledgeable reliable financial advisor.

It is good to have a pension fund, it is good to make investments as you go along – but nothing can beat a secure passive income stream – that grows, even when you’re not around. That is your money – to do with as you please. Your children and grandchildren may take over that business when you are no longer there.

I come into contact on a daily basis, with older people who invested in pension and provident funds all their lives – and today, after retirement, they’re struggling financially. Inflation and the cost of living have way surpassed their savings. Some have to go back to work – if they can – to make ends meet, others have to look their children in the eye – for financial assistance.,

Expenses may be a little less as a pensioner than when you were young – you don’t drive as much as you used to, you don’t need office wear every season, you don’t socialize as much as you used to – however medical expenses may rise, your vehicle still needs to be maintained and at times replaced, your home needs to be maintained – the list goes on.

These are all reasons why creating multiple streams of income has become even more important than ever before.

Great article for pension fund members

7. Build wealth long-term

When we’re struggling financially, it can be difficult to think long-term. The fact of the matter is – when we focus our energies on getting out of the financial slump – instead of focusing on being in the slump – working on additional income streams can have enormous long-term effects and capital gains – ensuring that you will not end up in a similar situation again.

Many of the potential work from home jobs can be sustainable and scalable income generators. These are things you can start while still employed, or living from the pension you receive. You therefore have time to grow the additional income streams to the point that you are able to leave your nine to five job or re-invest your pension income. Grow these income streams even more, expand, and focus on passive income streams.

Does it require effort, dedication, commitment, extra hours to get there? No doubt!  But the long term benefits speak for themselves. Hardly ever, is a side-line income an overnight success – but with dedication you will get there.

Work smarter, plan ahead and leverage your time to achieve financial freedom earlier in life – or where you are right now. The freedom from having to trade your time for money, and the reward you feel when your own business is a success, allows you to focus on what is really important to you– both now and in the future.

8. Additional income streams will help pay off your debt

It is the select few who can say they have no debt – even if the only debt one has, is the balance on your credit card, it is still debt that needs to be paid off every month. Can you imagine a “debt-free” life? Áll your earnings therefore actual income – to be used as and when you like.

Let’s now focus on how multiple income streams will help you pay off your debt. No rocket science – when you start earning more than you need for your day-to-day expenses, the additional money may be used to pay off your debt – more than the monthly payment – therefore paid off sooner than planned – resulting in less interest to be paid.

This is one of the many reasons why millions across the globe have several ways of earning an income. The additional income will among others, be your ticket out of debt. Paying off debt is incredibly liberating, and it is vital to your financial health, peace of mind and happiness.

Once your debt is paid off, you have finances available that you may invest in real passive income opportunities – way to go! Just think of that “Early retirement” – and what all you want to do when money is no issue in your life.

Final Thoughts

Uncertain of how and where to start? My most favourite is the “Your skills, knowledge, experience and passion are what the world needs.” When you apply everything you’ve learnt in life, combine that with practical skills and experience, throw in a good shot of passion and voila! you have the business you were designed for. One of the businesses you were designed for.

Visit my blog post specifically on that – Your skills, knowledge, experience and passion are what the world needs

Visit our landing page www.fortitudesa.co.za – you may join us in an exercise where we explore all the possible business opportunities you  may excel in.

Start as early as you can. The sooner you start, the earlier you may learn everything required to start and maintain your own successful business. Educate yourself and do the work. Achieving financial freedom is very possible, and if you can do it, you can live life on your own terms.

Repeat that – feel the beautiful sound of it – “You can live life on your own terms “ What a beautiful idea. When it comes to living on your own terms… the sooner the better.

Elmarie Bouwer

Elmarie was a global Business- and IT Consultant for 36+ years, having consulted on behalf of several Global IT Frontrunners, to international Industry Leaders. She started her own business Fortitude South Africa in 2010, and has since been focusing on assisting others to reach their full professional potential. Elmarie obtained her SMME Management qualification Cum Laude from UNISA in 2016. She is also the founder and MD of “Ball for All” www.ballforall.biz – Dances for Wheelchair Users and Amputees.

Elmarie loves Lindt 85% dark chocolate with orange. She indulges in it when nobody is looking.

The Entrepreneur in you wants to be successful. Be it NOW.

Our Landing Page – www.fortitudesa.co.za where you may get more info on compiling your own professional Business Plan as well as more info on the exercise we conduct together with you, getting to find out what all the possible types of Businesses are that you may pursue