Having additional sources of income is a necessity these days, and must be always worked for. In the wake of Covid 19, the high rate of unemployment & innumerable lost jobs is keeping the salaried & self-employed worried. There’s absolutely no guarantee for how it can be tackled & securing your present job. For many, their jobs are the only means for living. Although, you may have your partner working in a corporate too. However, this is again a job! Basically, you have a great dependency on the salary earned every month & clearly makes the situation tight.
So, how can they ensure their longest survival? Wouldn’t be great if we all had some additional sources of income to not risk their daily livelihood?
Reasons You Need Multiple Streams of Income
Since, relying fully on a job/ salary cannot be enough, its best to have an additional income. Below highlighted are the reasons why money from multiple sources is important & how can it be apportioned:
Increasing Medical Costs: The fact is that medical treatment costs have exponentially increased. So if you have an additional source of money, it can take care of your unplanned hospital & medical costs.
Unemployment: In the present times, it’s quite difficult to vouch on a job. Also, it’s at the helm of the company to keep or fire an employee. An additional source of money can keep you prepared for any contingency like unemployment. Even when your additional income is low, it can give you time to plan better.
Paying for Education: An additional source can potentially help to pay for school, college fees, etc. Rather than exploring their long term savings, its best to earn a little more. This way, you will be able to pay for college/ school out of the additional sources.
Cut down your Expenses: Sometimes, to be able to survive within our means, we tend to let go off basics also. We are habitual to put money into avenues which rank high in priority. And then we think about cutting on our expenses even further. There are only 2 ways to stay safe- less spending or more earnings.
Pay for Different Purchases: Often, you pay for your purchases, taking a loan. How ideal is this option? Wouldn’t it be better if earn more to bear all the expenses, especially expensive items? A suitable income stream will be able to pay for all the high load items in a shot! Curtain your outgoings & keep more money!
Build a New Income Stream: If you’ve been thinking to build a newer income stream, then it’s possible to do so if your earning more. You can use the extra money to constructive avenues which pay back. This will you will increase your monthly cash flow and become financially independent.
Pay off your debts: Using the additional source of income, you can easily pay off your existing liabilities & debts for a tension free living. Also it helps to save on considerable interest amount & save that portion for later.
You can reach your financial goals
Whatever your financial goal is, learning how to earn extra income can help you reach it sooner.
Some of the financial goals that you may want to work towards include:
- Saving for a vacation.
- Stop living paycheck to paycheck.
- Building an emergency fund.
- Adding to a house down payment fund.
- Reaching retirement sooner.
Earning extra income can help you diversify your income streams
Life is unpredictable, so you would not even realize how bad a job loss can be. Also, salary raises are seldom and workload is gigantic. So, it’s advisable to take control of your money & keep your options open for income.
And incase, you find it tedious to create another source of income, stuck in an emergency lockdown, then Home Credit Personal Loans can be your happy place! Apply now for instant personal loan upto 2 lakhs, sitting at the comfort of home!
