Thursday, December 24, 2009

Never put all your time in one income stream

The phrase “Don't put all your eggs in one basket.” should be familiar to you. For financial planning, I would say “Never put all your time in one income stream”. It is because spending time only in one income stream will actually put you in a lot of financial risk. Let’s assume that your only income stream is from working as a full time employee in a company. If one day you are not able to work in the company due to some reasons, you are not going to get paid next month.

A lot of people is putting a lot of time in their main job or core business, but have neglected many other things that they can do to earn or make extra money. As the result when their one and only “basket” dropped on the floor, they are not able to know what to do next. Stress will start to surface as they have no other income source to depend on. Very often people are probably lack of ideas or lazy to find out what are other things that they can do to create another income stream for themselves.

My advice is never put all your time in one and only income streams. Try to understand yourself what you can do to create another income streams for yourself. For myself, I already have four income streams and trying to learn to create more.

4 comments:

ZhuKoLiang said...

hi ThreeCents,

come to think about it, it is quite difficult.

Lets say personA works a 9-5 job, earns 2k/mth.

After 5pm, he is quite tired... goes home watch tv, n relax...

In sg, really dunno what other income stream can have..
Maybe:
Dividend stocks?
Blog income?
--> What else? i can't think of a VARIETY??

Any brainstorming out there?

Freedom Achiever said...

Hi ZhuKoLiang,

As for me, I have 8am to 6pm works, and teach part time tuition in two week days from 8 to 9.30pm in the past. My objective is to let my family have a more financial secure life, that is why I never feel tired as long as I have 8 hours of sleeping time. When you have a aim, you will feel motivated to do thing to achieve your aim.

Currently I don't tuition any more as it is an active and not a passive income.

Regards
Freedom Achiever.

ZhuKoLiang said...

yeah, i truely agree with >1 income stream is good.

but income got 2types: one is active income, one is passive income.

Active income requires time n effort to work for it, example ur 9-5 job.

passive income -- dun really need to do anything to it.

But time is LIMITED. hence there are not many varieties of active income stream u can do.. unless u morning work 1job. afternoon work another job.. this one no need to say liao..

hence, we concentrate on passive income. but i can't think of a varieties of passive income. i can only think of: 1 blog. 2stocks dividend. thats all. is there anyone that can help brainstorm a whole list of passive income?

Freedom Achiever said...

Hi ZhuKoLiang,

I used to have the some thinking as you in the past, not sure what to do. I suggest you keep your mind open,and actively search the internet to find out what are the options.

I have set aside some times every weeks to search for other passive incomes, more ideas are generated in the process.

Not to offend you, I think you get the wrong idea of passive incomes. Some passive incomes need times to actively build it. Only when it is formed then the income will become passive. Think along this point, and you will have more options.

And one more thing to note, I don't do MLM.

Regards,
Financial Freedom

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