Building Multiple Income Streams as a Career

Over the past few weeks, I have been thinking about my career quite a bit. Perhaps with a few exceptions, I felt that career is a dead concept for many of us. What would prompt me to say such a negative thing? Basically, I dodged a downsizing bullet not too long ago. It’s sad to see 10, 20, or even 30 years relationships be destroyed by these downsizing initiatives. But the reality is, there’s no such thing as growing up with a company anymore.

Building multiple streams of income is the career of the 21st century

Traditionally, it was possible to achieve a comfortable retirement with a good career and some retirement investments to supplement your pension and social security. In this era, it’s no longer practical for us to count on our job, as such, we should do what we can to become less dependent on it. I strongly believe that it’s more logical to focus on creating multiple sources of income — call it the career of choice for the new millennium if you wish.

Active and Passive Income

This is basic risk management and it’s no different than diversifying your investments. In investing, we know that a small minority could do very well by picking a handful of investments — i.e., Warren Buffet. However, for the majority of us it’s better to buy and hold a globally diversified portfolio of low-cost investments. The same concept applies to income generation. It is wise to not relying on your job as the only source of income.

Some advantages of having multiple income streams:

  • If you lose your job, your income is lowered as opposed to disappeared.
  • It will help you reach your financial goals faster.
  • It gives you a taste of financial freedom — after all, financial freedom is basically when you no longer need your job to cover your living expenses.
  • It gives you greater flexibility and leverage. You’re in a much more powerful position when you know that you are not 100% dependent on your job to make do.

Have you ever had a close call with downsizing? Have you thought about building an alternative income stream?

About the Author

By , on Jul 21, 2008
Pinyo
Pinyo is the owner of Moolanomy Personal Finance. He is a licensed Realtor specializing in residential homes in the Northern Virginia area. Over the past 20 years, Pinyo has enjoyed a diverse career as an investor, entrepreneur, business executive, educator, and financial literacy author.

Leave Your Comment (31 Comments)

  1. TREVOR says:

    What is best opportunity in having a income passive streams business in 2013.

  2. Calvin Mackey says:

    Its time for everyone to look, for opportuities that will supplement their income.
    Find something that you can do part-time.

    Networking is very important.

    • Kostas says:

      Is it a sad state of affairs that most everyone is now forced to find ways to supplement there income, which if that means taking on a part-time job, means reducing time spent with family.

  3. Doug says:

    Creating multiple passive incomes is crucial in this day and age, your right on in that respect.

  4. Jen says:

    Paul I wish you every success. I was laid of in 2007 and again in 2008. Since then I have been unemployed. A read a CNN article a few minutes ago in which mention was made that most employers stay clear of the unemployed, they prefer candidates who are employed. I have stopped submitting resumes and is looking to work from home building multiple income streams; so far I haven’t been good at anything and most of my savings and 401K is gone. Still trying to find my niche.

    Although I don’t have a corporate job anymore the truth is: the only thing I miss is the money. I agree with the comment above “a career is a dead concept”. Independence and freedom is what we need and the career is a prison. Just a question of better furnished or lesser furnished prison.

    • amwms says:

      Jen,

      I began searching for feedback on multiple income streams, and found your reply to this blog. I totally share your sentiments, although I am almost to-the-date four years late in my reply.

      It is my hope your situation has changed. I hope you have sought and developed “multiple income streams.” As I sit here re-evaluating my gifts, skills and talents, my biggest challenge is building a client base, and bootstrapping as I build, since my only financial backing is generated by products and services I sell.

      There are several things I do, but, my passion lies with only one. It allows me to work from home, I can set my own schedule, I can sell online, and at vendor fairs locally or nationally.

      If you are a subscriber to this blog, I would like to know what multiple income streams you have acquired. I’ve considered learning a new skill to promote. However, upon my assessment of my current skills, I had to ‘put on the brakes’ and promote what I have.

      My current potential streams of income include: Licensed Nail Technician; Freelance Writing (Copywriting, Proofreading, Grant Writing, Copy Editing); Leather Artist/Designer(can sell on Ebay and Etsy), Consulting (Small Business: writing business and marketing plans). I have enough talents and skills to make multiple streams of income my business. However, I have been working for others for that ‘false sense of financial security’ of a steady paycheck until my at least one of my multiple streams of income becomes steady.

      Today is the day I have decided to stop working for others and commit to building my own multiple streams of income.

      Again, I would like to hear about an update from you if you still read this blog.

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