"Go to school. Get good grades so you can get accepted into a good college to get a high paying job with benefits." This is what many of us are promised ever since we were children. In fact, this is sometimes even used as negative motivation to convince us to study harder for that exam we do not like very much. However, it is becoming clear that this path we have been guided through all these years will no longer guarantee the promised success. Today, many of college graduates are either underemployed or unemployed, with a massive amount of student debt. This has lead many to believe there is very little opportunity for the less fortunate. Some of these concerns have been expressed in terms like "income inequality." But this could not be further from the truth.
While, for many, it may seem like opportunities have become scarce, there is actually more opportunities available today. This abundance of opportunities are made available and accessible to a significantly broader population by the Internet. The Internet has significantly reduced the financial capital required to take advantage of the opportunities today. The abundance of opportunities today has made it possible, and even more desirable, for somebody to build several income streams.
For many of our parents and grandparents, working at a single company and climbing the corporate ladder has worked out great for them. So, there is no surprise that they urge us to get a "safe" and "secure" job like they did. However, in today's rapidly changing economy, where lay offs are becoming very common, and employers are cutting costs by limiting the benefits and access to the benefits they provide their employees, it is clear that relying on a job is neither safe nor secure. In the event that an employee is laid off or is otherwise unable to work, the lack of security in "job security" really starts to shine. While certain benefits can help employees get through these tough times, there are often limits to these benefits. And in many cases, these limits prevent one from maintaining his or her own quality of life.
For many, losing their primary (and many times only) income source is very devastating. While their income has halted, their bills and other expenses will continue to come. The impact of such events can be alleviated by maintaining a certain amount in an emergency fund. However, according to a report by CNBC, about 57 million Americans do not have an emergency fund. In fact, another report concluded that 78 percent of Americans live paycheck to paycheck.So, while saving for a rainy day may be the easiest solution, it is not a viable option for many.
A much more viable solution would be to shift one's focus, from getting a higher salary, to creating multiple income streams. By having several streams of income, one would not be as severely impacted if he or she should lose one source of income. In such an event as described above, one could simply rely on these secondary income sources to maintain their quality of life. In some cases, it may even be possible to replace one's salary with these alternate income sources. The average millionaire has seven income streams. Developing multiple income sources is not just about building wealth, however. While that is definitely an added bonus, the primary reason one might want to having several sources of income is security. As described earlier, in today's changing economic climate, relying on a single income stream is very risky. By developing multiple sources of income, one can better protect himself or herself during the event that one source of income disappears.
While discussing the subject of multiple income streams, it is important to understand the difference between active income and passive income. Active income is earned through direct physical effort. Probably the best known example of active income is the salary one earns through a day job. Active income is the primary way we are taught to earn money. However, it has its limitations. Probably the biggest limitation is that in the event that one stops working, that source of active income also stops. On the other hand, passive income is earned through indirect means. Examples of passive income sources include dividends and royalties. The benefit of passive income is that, unlike active income, it does not stop in the event one stops working.
There is an abundance of opportunity to develop multiple income sources in today's Internet-driven world. Make no mistake, it will take some effort to build these income sources. However, make no mistake that these efforts will be well worth it. Below are just a few examples of the opportunities available.
A classic examples of developing additional income streams is through blogging. With a big enough viewer base, one can begin to generate income from a blog through advertisements, affiliate links, and, in the case of Steemit, simply producing quality content.
Thanks to services like Kindle Direct Publishing, it has never been easier to publish a book, for free, and begin selling it to millions of people around the world. If you have a story to tell or have some knowledge you would like to share with the world, the opportunities to do so are within your grasp.
With the challenges many creators are facing with YouTube, one may question the viability of this platform as a source of income. However, if done properly, YouTube can still allow one to develop a good income stream. One mistake many YouTubers make (myself included) is in believing the only way to build an income through YouTube is through partnerships and monetization of their videos. While this may be a good way to earn income from the platform, it is not the only way. Additional ways to earn an income through YouTube is through affiliate links and donations through services like Patreon.
Thanks to services like TeeSpring, selling custom products online has never been easier. With such services, one can simply create and offer their custom products to a wide audience, earning a commission for every sale. Services like TeeSpring handle all the inventory and production. All one has to do is create a product and build an audience that is willing to buy.
Services like Fiverr have given many the opportunity to generate income through freelancing online. With a service in mind that you are willing to provide, Fiverr makes it easy for you to offer that service to millions of people online. Be it Graphic Design, Web Development, or something else, services like Fiverr can help you utilize your talent to help many others while giving you a source of income.
The economic climate today is rapidly changing. While the traditional path has worked for our parents and grandparents, it is clear that this same path may not work for us today. Through an abundance of opportunities granted to us today by the Internet, generating multiple income streams to ensure our financial security has never been simpler.
