The average rich person has 7 different sources of income. This is how you can win financially regardless of the market, inflation, recession, and layoffs.
It is extremely risky to have all of your income tied to a single source, i.e. your day job.
Even if you have the best boss and the best company. Things change. Your boss could move to a different role or company and you could be moved under a new boss that doesn’t work for any number of reasons.
I was working at a Fortune 50 company when one-day mandatory meetings showed up on 15% of everyone’s calendar. Those that went to those meetings were handed a severance check and a box.
The meetings wouldn’t be on your calendar until about 15 min before. I wasn’t laid off but people that had been there even up to twenty years were laid off that day.
20 years of loyalty gone in a 15 min meeting.
That day reinforced for me again that companies aren’t loyal to workers.
These ideas are based on my personal experience and opinion and should not be considered professional financial investment advice. Furthermore, the ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.
- Side Hustle Benefits
- Reach Your Financial Goals Sooner
- Cover Unexpected Expenses Without Going Into Debt
- Provide More Security In Case Of A Loss Of Job
- Protect Against Recession
- Provide Backup Income In Case Of Illness Or Other Personal Issues
- Start A Business Or Buy A Home Or Rental Property.
- Supplement Retirement Plans Such As Social Security, Pensions, and 401Ks
- Is It Easy To Get Another Source Of Income
- What Are The Main Ways People Get Another Income
- The Benefits Of Having Other Streams Of Income
- Best Way To Start A Business
- How The Rich Make Their Money
- Are you living your best life or are you stressed about paying the bills?
- About Dwight Scull
Side Hustle Benefits
If you’re like most people, you live paycheck to paycheck. You may have some savings, but if an unexpected expense comes up, you’re likely to have to borrow money or put the expense on a credit card. This can make it difficult to save for retirement or other long-term goals.
A second income can help you reach your financial goals faster. It can also help you cover unexpected expenses without going into debt. If you’re thinking about starting a side hustle or looking for ways to earn extra money, here are some reasons why a second income could be a good idea.
Reach Your Financial Goals Sooner
If you want to retire early or save for a major purchase, a second income can help you reach your goal faster. The extra money can also help you pay off debt more quickly.
Cover Unexpected Expenses Without Going Into Debt
If your main income doesn’t provide enough money to pay for all of your expenses, you may be able to cover some of those costs with a second income.
Provide More Security In Case Of A Loss Of Job
The riskiest thing you can do is to put the entire livelihood for you and your family in the hands of someone else. I have seen entire companies collapse because of a failed merger. I have seen a merger happen and entire departments lose their jobs even though they were promised they wouldn’t.
Your job and company, no matter how good, isn’t a guarantee of safety and longevity. Creating a secondary source of income that you can have some control over at worst gives you extra options. At best it could lead to being able to cover all your bills without needing your day job.
Protect Against Recession
The dreaded word recession. One of the hallmarks of a recession is workers being laid off. In the fall of 2022, both IT and the finance industries started doing quiet layoffs by letting people go that wouldn’t come back to the office after two years of working full-time from home due to the pandemic.
Having other sources of income can greatly enhance your financial and personal well-being and security, especially if you can grow them to be able to offset most if not all of your expenses.
Provide Backup Income In Case Of Illness Or Other Personal Issues
We can never know when an illness or accident will take our livelihood away from us. You probably have short and long-term disabilities at work. Most long-term disability plans will only cover 40% to 60% of your pay.
In addition to that, you may have been injured enough to not be able to do your job, but you could work in retail. Well, disability won’t cover that long-term. This would lead to a substantial drop in the amount of money you could make.
Start A Business Or Buy A Home Or Rental Property.
Having secondary income frees up money to be used to make even more money or buy a home.
We will cover online business ideas later in this article, but if you are interested in real estate property to become a landlord or hire a company to manage your properties for you then you should check out my financial resource list for real estate here.
If you want to invest in real estate for as low as $100, check out Fundrise to get started making quarterly dividend payments.
Supplement Retirement Plans Such As Social Security, Pensions, and 401Ks
If the second income you create can be run with minimal effort, which is the eventual goal of a secondary income, then it can be done in retirement.
This could also allow you to retire early and still have a job making good money.
Is It Easy To Get Another Source Of Income
In many ways, the answer is yes and no.
It is easy to make and sell things online. It is hard to grow an income stream to offset your expenses. To do the latter can take some years of effort.
The rich focus their time and energy on growing one income stream to extreme profit and then diversify that profit to have that money make more money.
This is why you should start building these today and not quit your day job unless you have consistently created double your current earnings from your job.
Best Way To Start A Business
If you are wondering what the best way to start a business is and how long it can take to make real money from it, then look no further.
We will cover what all businesses must do to make money.
When you know if you are making enough money to quit your day job and why your day job will be very important to you as you start a side hustle.
What Are The Main Ways People Get Another Income
To make a real income you will need to solve a problem that people have. The bigger the problem and the more people that have it the more money you can make.
Have you always wanted to write a book? If so you can make some money from writing an ebook on any number of topics. I have several books that bring in a small amount of money each month.
Like all things, this could be used to offset your income, but only if you commit to it and publish a book or more a month on a collection of similar topics.
This is my favorite way to make money. You find products actually use and would recommend to friends and family.
Then you see if those businesses will offer you a commission to recommend their products.
They give you a special link so they know it was you that recommended the product. If the person buys the product then you will make a percentage of the sale.
If you want more information about affiliate marketing, pick up this e-book on the subject from a man who has made 8 figures from affiliate marketing. This is potentially the fastest way to supplant your yearly income.
I am making over $100 a month from my RPG printables and that started about 4 months after I opened the shop and days after I stumbled upon a product that started to sell about every other day.
You can make real money blogging, but you will need to use affiliate marketing, ads, and/or your own courses.
This is a lot of upfront work to get this up and running but once it is it doesn’t take as much to keep it going.
If you are curious about how to start here is a friend of mine who has a free blogging 101 course if you read the sales page carefully.
How The Rich Make Their Money
Have you ever wondered how the rich make their money?
Well they start by working a traditional job (well 80%+ do) and then they build assets over time until they are wealthy.
There are different types of assets that literally anyone can get into. Some are very active. Some are 100% passive. Most are what I call passive-ish. Lots of work at the beginning and then almost none later.
Click here to read From passive to active income.
If you are comfortable being on camera then you may take your blogging ideas straight onto video instead.
To make from YouTube you need 4000 watch hours in a year and 1000 subscribers to turn on ads.
You will need more than this for sponsorships, but you could do affiliate marketing on day one reviewing products you like and own.
This can take a lot of time because of video editing and feeding the YouTube algorithm 2 to 3 times a week.
Freelance Existing Skills
If you work in an IT or other specialized field you could see about using that expertise to do freelance work on upwork.com or even with friends and former colleagues.
This is a great way to make extra money but it is definitely a second job. I like to build other income streams so that once built they can make me money while I am sleeping or on vacation. You want to find a way to scale your money in a way that isn’t directly connected to your time.
Those were some of the myriad ways to make money online. There are so many different ways to make money that it would be impossible to cover them all here.
Are you living your best life or are you stressed about paying the bills?
In this quick 2-page PDF, I cover 5 ways you can get your financial life back on track.
I used to live paycheck to paycheck and after years of paying off debt and maximizing my investments I am now able to save and invest more than 45% of my wife and I’s gross pay.
This allows me to live comfortably (not a crazy rich person) and sleep better at night. If you want this let me know where I can send it to you below.
The Benefits Of Having Other Streams Of Income
Building additional streams of income have many benefits both financially and personally.
It can provide added security in case you lose your job or have a serious illness that costs you your career.
In addition to that, it will allow you to start to build a third income source. In order to be the successful focus is needed. Every minute you spend working on another idea for a different stream of income is really 2 minutes you are taking away from being successful with the first.
Wow, you read a lot to get here. Can you do me a favor, please? Can you leave a comment if this was helpful to you or if I missed something? Alternatively, it would help me out a lot if you shared this content with those that might need to see it. Thanks, you are the best!
About Dwight Scull
I have been married to my wonderful wife, Rebecca, who puts up with me since 1999. I am a proud father to my Gen Z, son, and daughter-in-law. Grandfather to my favorite granddaughter who was born in 2021.
I lost my mom, father-in-law, and 12 others in 2013 and was DEEPLY in debt. I started reading and watching all the financial info I could find.
I chipped away at my debt and went from a negative $105k net worth having one home paid off, no credit card debt, and saving/investing 45%+ of my gross salary.
I used these daily habits to lose 100 pounds and keep it off.
I believe that you can overcome any challenge you face if you just take small daily actions and be consistent with them. It is how you will be financially successful.
Join my free Facebook group to get a ton of free resources to help you get out of debt, learn how to invest your money and work toward having the option of retiring early.