Wednesday, February 29, 2012

The Importance of Multiple Income Streams

Surely you've heard the expression about not putting all your eggs in one basket. This is an especially important practice in today's economy when so many folks can no longer rely on job security or be sure that their savings won't be depleted by issues beyond their control. That is why multiple income streams are so important.

Several years ago, I quit my day job. We had just begun a recession, but I didn't think it would last. I had been selling items on eBay and was doing quite well. Well enough, I thought, to be able to abandon a job that I did not enjoy. And I believe it would have been had the economy only rebounded.

But it didn't. As buyers continued having less disposable cash, my items (dolls and collectibles) were the first things they scratched off their lists of "must haves." Sales took a nosedive. As this was my only source of income at the time, it was pretty stressful.

With my own measly savings nearing an amount that wouldn't cover anything close to rent, I started scouring the Internet for ways to make money. I found a lot of them. Of course, the vast majority of them will never work. Some are even blatant scams - the surefire method for overnight success simply does not exist.

Passive income will elude most of us our entire lives, even though we'll keep searching and hoping for it day after day. The reality is that most income streams require blood, sweat and, sometimes, tears. And no single income stream can be counted on to pay the bills. Hence the need for multiple streams.

Making and saving money online, though I may stray a bit from time to time, are the focus of this blog. Because every little bit helps...