No job security
These days there is no job assurance as our economy is slowing down. The experts diagnosed a structural economy meltdown. In such poor economic conditions companies take cost cutting measures. There might be layoffs across the country in various sectors in the coming years. If there is income through various streams you need not worry about it.
Pursue your passion
Many of us do a 9-5 job to pay the bills. Earning through many sources brings money home. It helps you invest your time on something that you are passionate about. Say, for example you work for a financial company but you love painting. You can change your hobby into another source of income by selling your painting online. Your passion in writing can land you in a part time freelance writing. The base line is that it lets you earn money through something you do with passion.
Pay your debts
Extra income aids in paying down your debts and loans if any. In economic meltdown situations it is advisable to close the loans as fast as you can. It is not possible with a single income. Getting multiple income help pay off your loans with in the tenure.
More financial security
Management of money from various sources will pay off in the future in needy situations. You can invest the extra money earned through other sources in mutual funds and gold. This will stabilise your future despite changing economy and stock market conditions. You are giving a secure future for your loved ones too. It is difficult to make such arrangements with single income.
Save for your festivals and vacation
Life is not about paying bills for grocery, electricity, commutation. You can use the extra income for luxury expenses. It lets you plan the upcoming festivals or family wedding in a grand manner. You can even save for trips abroad once a year.
Retire early and security in old age
You can meet your plans and targets with collective sources of income on time. It will be better if you have approximately 8 times of your yearly salary when you retire. These days income from a single job is not quite enough to meet the target. But money flow from different sources help save more for old age and retire early.
Yet, you don’t have to stop earning once you retire. It is wise to plan early for passive income as you age. Being a non-active business partner helps you get your share of money without working. Buying a house before your retirement ensures rent which is also a good source of passive income.
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