Those who rely on their salary income to see them through their life, often fall on their face when faced with an emergency after retirement. There is, therefore, a very real need to create as many income streams as possible while we can. That will stand us in good stead when we come face to face with unforeseen expenditures. That will provide us a fallback option in times of emergencies to get over the contingency. In short, it will provide some sense of financial security to us.
First things first, we do not enjoy the same level of job security as we did some five or six decades back. Jobs have overshot their saturation point and there are many more qualified and skilled people looking for jobs than ever before. In comparison, there are fewer jobs in the market. Therefore, we should strive to create as many income streams as possible from an early age.
Salaried people find themselves in trouble when their retirement stares them on their face. Many of us earn just enough money to make both ends meet. Many of us do not enjoy pension benefits as employers have become smarter and they find some way or the other to wriggle out of this responsibility.
Unlike a century ago, there are few regular jobs in the market. Most of the people are employed on contract basis. For them, there is no job security as their fate hangs on periodic renewal of their contracts and their take home salary is much less than what regular employees get. On top of it, they may be deprived of pension and other benefits.
Therefore, we need to explore all the opportunities for earning extra income in addition to our salary income if we are salaried employees. We have quite a few options before us. The sooner we get down to working on them, the better.
The streams of income that we ought to be gunning for could be profit income which involves buying things at a lower price and selling them at a higher price. Then there is the possibility of earning interest income by lending money to someone. We can also invest in stocks and earn dividends from them. If we invest in house property, we may be able to earn some rental income from that. We can earn royalty by writing books. We may also try out affiliate marketing and earn some hefty commission for deals closed by us. We can also improve our net worth by investing in assets that grow in value with time.
The more streams of income we generate for ourselves in our early life, the more we are likely to enjoy financial security in the later part of our lives.
