Why You Should Create Multiple Income Streams
Hey everyone, my name is Megan and this is The Bootstrap Boutique, where I document my journey to creating a small online business.
Today I wanted to talk about diversifying income streams, and why its really important to do that.
For anyone that’s not familiar with the concept of income streams and what I mean by that, really an income stream is just a way that you receive money.
So for most people, its going to be their day job. You go, you work forty hours a week and you collect a paycheck every so often. That is an income stream and that is by far the most common one that’s out there. You can also of course have income streams from rental properties, from stock and bond portfolios, so interest and dividends, or from a small business or even just a side job. So maybe you have a photography business on the weekends or maybe you just deliver pizzas. Those are all different income streams that you can have.
Now most people are just going to have their job and they are good with that, they don’t think they need anything else. But I got thinking about this a couple of days ago, you know, I think I have a pretty steady job, I think my husband has a pretty steady job, but what if something happened to one of us? I work in a very highly regulated industry where the actions of someone else could effect me and actually effectively put me out of the industry. That is a really scary thought when you, when you actually sit down and think about it. Alternatively, my husband is a veterinarian, and not only is he a veterinarian, but he works with horses. So horses are really big animals that can spook very easily and the potential for him to get hurt on the job is absolutely there. We do have disability insurance on him, but it would not be enough to cover his salary in the case of him being seriously hurt. If he was out of work for a while that would really hurt our paycheck. So thats why, or its one of the reasons why at least, that I thought I should really start something else. So, you know, this is one of my something elses, which I’ll talk about in a little bit.
We do have a rental property that we have received a little bit of money on here and there but we’re actually in the process of selling it and trying to simplify our lives a little bit on the whole, as I on the side with my side business and with The Bootstrap Boutique work to make my life a little crazier.
But anyway, so why is it important to have diversified income streams? Well, just for that very reason.
What if I lost my job, what if my husband became injured and couldn’t work?
If one hundred percent of your income stream is made up of your primary job, then you just took a pretty serious knock to your income. However, if you have your day job, you have a side hustle, side business, you deliver pizzas on the weekend, or you dog sit or you do all of those things, or you have a great investment portfolio that you can pull some money out of for a while, then all of a sudden that job loss is a lot less scary.
It really gives you some freedom and some breathing room in your budget should you need it.
So take it back to the whole thing about me deciding to start a small business. I’ll talk about my “big why” in another video, I don’t know if I’m really ready to put all that out there yet, but one of the reasons why I felt like it was really important for me to start something different is because I just wanted another income stream.
So this small business, I don’t expect it to replace my day job, I actually really like my day job, so I wouldn’t be in any huge rush to leave it, but I did recognize that there is some risk inherent in that job and the ability to earn income from somewhere else was pretty attractive. Also, I have this small business that I started, I also started The Bootstrap Boutique, right? And you may have noticed that sometimes in order to catch these videos, you have to watch an ad, or at least five seconds of an ad. So, you know I’m trying to monetize that and use my side hustle to my side hustle as another income stream for me. I think so far, I’ve earned you know, nine cents off of it or something like that, so not like its earning me a ton of money right now but I really hope that as I figure out a little bit more of what I’m doing with The Bootstrap Boutique and more importantly how I can use it to help other people out there in the community, that it is something that can contribute another income stream to our family.
So I just wanted to hear from you guys out in the comments, what are you doing to create other income streams, do you already have other income streams in place? And is this something that we can talk more about in another video? I’d be happy to do some research and talk with people and figure out some other income streams that we could share to help somebody out there in the world to create a little more financial independence for themselves. So hit me up in the comments, as always, please like this video, share it with your friends, you can subscribe to my channel, I would love that. You can send me an email at firstname.lastname@example.org and I’ll talk to you next week. Thank you!