Why You Should Develop A Second Income & Why So Few Do It

Many individuals dream of a second income, yet few manage to put forth the effort and determination in order to produce one.  The impact on your personal finances would obviously be substantial, yet so few people actually do it.  Why?

The reality is that creating a second income stream is tough.  It requires you to, essentially, work outside of work.  We all live busy lives, full of work, taking care of the house, spending time with family, and trying to fit in a few moments of recreation.  As such, it’s difficult to find time to create a second income stream.

Additionally, a second income stream is basically starting a business, which is difficult.  Most new businesses fail to get up and running and the ones that do, can be very slow to develop.  Patience and persistence is necessary.

Thus far, we’ve established that creating a second income stream is very tough; it requires excellent time management, patience and a dogged determination in order to be successful.  If you’re looking for motivation to help you, let’s look at the benefits of developing a second income.

First and foremost, a second income stream simply brings you more money.  With countless Americans barely getting by, a second income stream would provide immense relief.  More income might enable you to pay off debt, boost your savings, save for a down payment, or build a portfolio of stocks.  Hopefully, you wouldn’t use it to accumulate more junk.

Next, a second income stream provides something that nobody ever talks about: income diversification.  Diversification is one of the most widely used terms when it comes to investing; however, nobody ever ties it to your most important financial area: your income.

With an extremely unstable economy with rampant unemployment, diversifying your income might be the best move you make.  While piling your second income stream into a cash reserve, you not only have a nice reserve to fall back on should you lose your job, but you have a viable income stream!

The reality is that it’s easier than you think to build a second income stream.  I’ve found that most people are either lazy or distracted with other things in life to put forth the effort to make it happen for them.  Everybody thinks a second income would be great, yet nobody does it.

In order to get started on this journey, first consider your present skill set.  This might be the same skills that you have as a result of your job or maybe some skills that you have picked up as a result of hobbies.  Either way, consider whether someone would pay for such skills.  If so, you’re already on your way.

Start looking at your network of contacts.  This includes your family, your friends, your co-workers, your customers (although be careful soliciting your business contacts), your neighbors, etc.  Are any of these people potential partners?  Potential customers?  Could any of these people help you get to the next step in this process?  Consider all options here.

Source: Quicken Loans

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Charles Yang

Besides experience creating Facebook & Google Ad campaigns for brands like The Straits Times, BHG, Poh Heng Jewellry, Charles has also generated seven-figure sales for his own ecommerce business and clients through strategic creation & execution of digital marketing strategy (social media, SEO, SEM, email drip, copywriting, web design & development) and online-to-offline strategy (event marketing, sales closing), and also leading/training/managing a sales team of 150 people.