The best financial advisors state that having multiple sources of income can help one achieve financial independence. One major reason, why experts feel that people should explore a side income is that it helps in achieving savings.
Many of us know that our normal jobs are just enough to pay our monthly bills. Our rent, mortgage payments, student loans and car EMIs take up a major chunk of our earnings. If we exhaust our entire earning on these things, how are we then going to save?
In this article, we speak to some of the best financial experts and ask them about how we can start working on a second source of income. In addition, we look at some of the advantages of the same. Finally, we look at what can be some of the challenges, which we can face, while going for an extra income source.
Reasons Why Financial Advisors want you to start a Second Income Source
As we have already mentioned in the introductory part of the article, a second income source helps in primarily addressing our savings need. However, it can be much more effective in just helping us save. Financial advisors state that having a second income source can help in also starting investments.
If you have a decent second income source, you can start using it to make your money grow. For example, the money you earn from your side hustle can help you invest in cryptocurrencies. You can also use the money to invest in stocks, SIPs and other things.
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A second income source can also help you improve your lifestyle in many ways. For example, rather than paying five-year EMIs on a new car, you can use the earnings and pay for the car. You can also plan for vacations, home remodelling work and engage in hobbies you have always wanted to.
Challenges people face when exploring a Second Income Source
While everyone knows that having an extra source of income is great, do you know why very few people are able to act on it?
In many instances, people do not want their employers to know and are fearful of the impact it can have on their normal 9-5 jobs. Secondly, we are under the impression that it is going to require a lot of time and investment. Finally, some of us are not ambitious enough to do better for our families and ourselves.
If you are doing your normal work properly, spending time adequately and not slacking in any aspect, you do not need to be fearful of your employer. You can also communicate to them that you need the extra money for some financial needs, which are important for your family.
If you are passionate about earning extra, all you need is a few hours every day, a laptop and an internet connection. There are hundreds of online jobs, which you can pursue. They pay well and allow you to work on your own time. We all end up spending hours on social media and YouTube. All of us should use the time to do something productive in nature.
The Final Words
Once you start increasing your income by a few thousand dollars a month, you will start seeing the difference for yourself. In terms of your own personality, you will start feeling more confident and responsible. In some cases, the side income source has become so lucrative for some, that they have left their normal boring jobs and have taken up the side business as their main and only source of income.