If there is one thing the past few years have shown us it’s that having a job today does not guarantee you an income tomorrow. When the Covid-19 pandemic hit, no one was prepared for the huge financial losses the nation would sustain. Not only were millions of workers left jobless, but a huge number of companies were forced to close their doors as well. Even though the economy is rebounding to some extent, there is no guarantee that you will have a job in the weeks ahead.
With this in mind, Justin Cobb, an entrepreneur in his own right, suggests that it is imperative to have multiple income streams at any given time. Whether you choose to invest in the financial markets, freelance on the side within your profession, or set aside a high-interest savings account, you should always have a backup plan in the event your current income comes to an abrupt and unexpected end.
“Even if you aren’t bringing in enough money to pay your bills from your secondary income streams,” Justin explains, “you will at least have a cushion to keep you going while you seek full-time employment.” This is how some people made it through the many business closures during the pandemic and although their savings and alternate income streams dwindled significantly, it kept food on the table and many of their primary bills paid.
“Hopefully,” Justin continues, “you will not need to draw from those income streams but knowing they are there offers a significant amount of peace of mind. Also, at some point in the future you may even have accrued enough money from those alternate sources to put you in a position to start your own small business.”
Whether you are saving for retirement or holding money aside, in the event that you accumulate high medical expenses not covered by your health insurance, the money will be there if you save wisely. Justin Cobb also suggests that you diversify as much as possible. He says, “Don’t put all your eggs in one basket so to speak. If the unthinkable happens and that basket drops, what good will broken eggs do for you?” Of course, Justin is referring to a market crash like that experienced in 2008-09. With multiple and well-diversified income streams, you will always have a good chance that some will survive. That, after all, is why you need multiple income streams. When it comes to survival, there is no better advice.