You diversify your investments just in case, you purchase health insurance, car insurance, home owners insurance, and countless other preventative products, so why do you depend on one company for your income? Often overlooked, people put all of their “income eggs” into one basket. Growing retirement income is an excellent and highly suggested path to take, but we also suggest diversifying your current income. If you can get income generating from many different places, then a lay-off won’t seem so bad.
There are a lot of online opportunities but our favorite is the simple dividend. In addition to dividends you can increase passive income a number of ways including writing articles online, savings accounts, Bank CDs, and real estate. If you can develop various streams of income, then you will have successfully diversified your income. Instead of depending on one big stream, you can have multiple smaller streams supplementing. You can most certainly keep that one big stream, but by developing these other streams you are increasing your current income and you are ensuring that if you lose that one large stream, you have other streams providing for you.
Obviously, not everyone is a real estate mogul, or keen on stock picking, but if you can pull together a couple of streams that you are comfortable with, or get a financial advisor to help you, then there is no reason that you can’t have multiple streams generating income for you. It is hard work to develop a stream, but once you get one going it is very invaluable.
To get on the road to passive income you need to select one stream that you want to focus on. Learn everything that you can about it, and try to learn from other people. Once you feel comfortable with try it out. Slowly contribute to it and get the ball rolling. A good thing to do is set an achievable monthly or yearly goal and try to reach it. We will go over an example on Monday.