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recession proof
creating multiple streams
multiple streams of income
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night job
household income
side business
prolonged period
day job
financial success
home based businesses
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Recession-proof Your Income
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Recession-proof Your Income

You've probably heard the investment term "diversify", as in diversify your portfolio. Well there's a reason to do this...it prevents your portfolio from losing a big chunk of its value in the event that one stock loses most of its value. Well the same thing is true with your income and your financial success. You can diversify your income by creating multiple streams of income. Well plainly said, that means getting another job or jobs. Unless you have multiple streams of income that make up your total income, you will be leaving yourself exposed to the risks of layoffs, demotions, restructuring where your position is abolished but they offer you a lesser position, or general cuts in pay.

One problem is that depending on your job, you may already be over-worked and under-paid and have very little energy or desire to go from your day job to your night job. Thus the increase in popularity in "home-based businesses". Imagine, like most people, that your job accounts for 100% of your income. If you lose your job, you now have 0% income or nada! Let's say that your next door neighbor has a wife or husband that works too. Then this scenario changes.

Let's say they both bring in the same amount to make the math easier. In actuality, that's rare. Well in this second scenario, both incomes account for only 50% of the total household income so if one person loses their job, there would still be 50% of your household income left over. Let's assume that the income from your regular job allows you to get by paying your car note, mortgage or rent, food, and maybe some entertainment. If you have children, the same income won't stretch as far but you understand what I'm saying.

So you decide that you wouldn't be able to survive if you lost your job even if you have a second income in the household. It would put too much stress on your spouse if they have to "hold down the fort" for a prolonged period of time. Well imagine if you had a side business that you both could work on in the comfort and convenience of your own home and over time you can build that business to the point that it can replace one or both of your incomes. You would essential have "self-insured" yourselfwith your own income insurance policy so that if the unexpected happened, you and your family wouldn't miss a beat.

Let's say it's your own affiliate marketing business and now after putting some time into your business you are generating 50% of your income from both businesses, your full-time job(s) and your part-time business.

Let's say $6000 per month from each business monthly. That's $12,000, basically you gave yourself a $6,000 increase as well as a $6,000 self funding, self-directed, disability income policy. In this scenario, even if both of you lost your job, you would still have $6,000 per month coming in and wouldn't have to dip into that "6-months" of income Suzy Orman recommends you to have. Oh, you don't have a Suzy fund...well then sounds like you need to do some more research into diversifying your income with a business you can do at home and one that has no "upside" limitations on income.

Often saying we learn in our childhood are applicable in our adulthood but we have to be reminded the hard way. "Don't keep all your eggs in one basket" is appropriate here. I know I don't have to spell this out but the reason they say that, boys and girls, is if you drop one basket full of eggs, stray baskets are much more environmentally friendly than styrofoam cartons, and you drop one basket of eggs, you haven't lost all of your eggs. That was just another way of saying, stay diversified!

It's interesting because as an affiliate network, we also practice diversity, we try to offer a full range of offers that our affiliate marketers can market because certain products and services are seasonal. Well a job can be"seasonal", layoffs can be seasonal, and the economy seems to have become seasonal where entire companies are boarding up their summer homes in anticipation of a "rough" winter.

Well that's what you should be doing too, preparing for the possibility of hard times ahead so that if and when they come, you're already prepared. Worst comes to worst, they never come and you end up with 2,3,4,5,10 times your income coming from a side business that you can use to increase your savings, fund the kids college funds (instead of out of your take-home), qualify for that dream home and the large mortgage or second mortgage that comes with it.

One of the reasons that you areworkingis not for the money in itself but the present and future options the extra money will afford you and your family. The nice thing about affiliate marketing is that there's no limit on how much you can make. In this age of uncertain economic times, the concept of a single source of income is no longer financially responsible and the concept of "life-time" employment may be a thing of the past for most of us...unless you run your own business.


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adilraja  

This is a really nice article. I have really enjoyed reading it.

Reply
  about 8 years ago
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