Why You Shouldn’t Put all the Eggs into One Basket

Whether you have your own business, perform contract-based services, or you work for someone else full time, the fact is having multiple streams of income is the best way to build income security into your life.

Think about it, when one income source dries up, you have the others, so you aren’t destitute or ruined as you rebuild and replace the lost income. Not only that, if your work depends on you performing a task, what if you get sick? Then what?
Thankfully, when you are working online, there are ample opportunities to build multiple streams of income to build your net worth, provide income security, and create a safety net you can fall back on during difficult times. In fact, one could argue that today there is no job security – no matter what you do. Therefore, no matter what you do, you should seek to find ways to create more than one stream of income.
Everyone has a lot at stake. You have health care, college for your kids, and so many people relying on you for their basic needs. Make no mistake: it’s not having a business that is risky, it’s having only one source of income that’s risky. Most jobs don’t last for 30 plus years anymore, and if they do, the pay doesn’t rise as it should. Therefore, creating multiple sources of income can alleviate the fear of being laid off, the fear of losing that one big client, and free you up to relax a little with your working life.

Multiple streams of Income

If you look at rich people, they do not rely on one source of income either. Even if they inherit money from a parent, they usually take that money and invest in several business opportunities so that they can earn a little money from each venture and not worry that the stock market might crash, or something will happen to their one source of income. They diversify their investments, they diversify their income generation, and spread the risk out so that they won’t suffer if something goes wrong.
That’s why you have sharks on Shark Tank who are already rich investing money in small business owners, entrepreneurs, and inventors. It’s not because they don’t already have enough money. Itís because they’re hedging against something happening to their original source of income with the other streams so that they’ll never be without. Because when you have many streams of income, you have options.
You have the option not to take just any client on to feed your family. You have the option not to work at that 8 to 6 job (face it, there are no 9 to 5 jobs), and if you’ve kept your expenses low, you may even have the option to just ride out the income loss depending on the other sources of income without too much sacrifice.

Creating passive forms of income can change your life completely. In this challenge, that’s what we’ll explore. Because there is no security in one income stream. You need many different streams to create an environment where you will not be ruined if just one of those streams should end for whatever reason.

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8 comments
  • I agree. Try other avenues to see if you become successful. Right now soon as I get everything that needs to get done, I’m going to look at other avenues to become successful. I hope other people would follow me in what I’m trying to do. Work hard and get your hands dirty. Then, later on, let the money flow in.

  • Given I’ve lived a few years now, I understand what you are talking about in your article.  Life is totally unpredictable.  I mean, just reading other people’s blogs, you see all the time where they set up a successful affiliate marketing site, and they lose their main merchant.  The merchant cancels them out like they didn’t exist for sometimes no apparent reason.  You really just never know.  That’s why I always use a variety of merchants and I don’t just focus on Amazon.  It’s just safer that way.  Great article and so true!

  • I love working from home.  I have a small home based business and do some work on-line as well as work out of the home a day or two a week.  You are right if one drys up I’ve always got another one to work on.  In fact, some times I think I have too much to do, but that’s only because I am in the middle of a new project.  Once it’s up and running I’ll have a more time.  Good article I enjoyed reading it.

  • I agree that people need more than one source of income in order to mitigate risk if one job or business fails.

    I am pro investing money in multiple different sources.  I had invested money in different stocks. There were times that different markets were up and different markets were down.  I felt really protected that not everything was going down.  I also like to invest in bonds as well to diversify risks.  Also, I like to invest in mutual funds, ETF’s as well as stocks.  In case, my ideas were off, I at least have the pros choosing as well.  Although, I am a pretty cautious person who does careful research.

    Thank you for your informative article,

    Shira

  • I’ve always been, what I like to call, “financially creative.”  Essentially, that meant I was on or, near poverty level most of my life.  It also meant (to me) that I have striven to help others and do what I love.

    When I’ve been called out for not having a job where I am receiving a 401K I always say, eggs, baskets.  I say eggs, baskets when I help on someone’s farm and then go clean my elderly friends’ home.  

    I have always been more comfortable away from the fluorescent lighting in offices.  I’m a writer but, that doesn’t mean I’m comfortable sitting on my bunz for hours on end either.  I get up, I stretch I take a walk..whatever it takes to bring me back to balance!

    I not only agree with this wise old saying but, recently, I added to it.  Not only do I need several eggs in several baskets…I want them all to be MY baskets from now on 🙂 

    Okay, okay…I’m a giver so one of those baskets is going to be the work I do for others but, it can still be MY basket right?!

  • I totally agree with you, I’ve always had a full-time job and a part-time job, to make sure I had options!  Now that I’ve learned about multiple streams of income, I’ve started working on a blog (website), so when I retire, I’ll be able to retired in style, have extra income coming in and a place where I can make money from my laptop, anywhere I have an internet connection.  As soon as I get my first website off the ground, I’m going to begin another site and with Wealthy Affiliate I will have the capability of having 25 total websites.

    In this day and age, nothing is forever, so it’s financially smart to be planning and developing sources for multiple streams of income. My neighbor just moved in his new home about 1 1/2 years ago and was so excited, then about 6 months ago, he was laid off, he moved out and put his house up for sale.  This is a prime example job security in 2018.  (I believe my neighbor had been with this company about 5 years and then boom, the rug was pulled out from under him). 

    Thanks for the insightful, timely page on the importance of not putting all your eggs in one basket.  

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