Updated: Apr 2, 2022
There are lots of reasons on why you need multiple streams of income but we'll highlight two key factors:
Technology advancement disrupting the marketplace
Nobody saw the coronavirus to happen. It brought the entire world to its knees and if you're one of those people that still have work or business owner that still operating, then kudos on you. The impact on tourism and hospitality industry is so deep that it will take at least 2 years before we can see any sign of recovery. You might already saw this in a Facebook post (ctto) listing well-known companies that already shut down or severely affected:
Victoria's Secret declared bankruptcy
Zara closed 1,200 stores.
La Chapelle withdrew 4391 stores
Chanel was discontinued
Hermes was discontinued
Patek Philippe discontinued production
Rolex discontinued production.
The world's luxury industry has ceased production
Nike has a total of $23 billion US dollars preparing for the second stage of layoffs
The founder of AirBnb said that because of pandemic, 12 years of efforts were destroyed in 6 weeks
Even the Starbucks also announced to permanently close their 400 stores
Another factor is the technology advancement, which has played a major role in advancing our world's economy. From our lifestyle, the way to how businesses operates, and how all of the people are connected. It's more convenient and making things a lot faster and easier.
However, as we continue in finding ways to automate processes, it is guaranteed that jobs that will be lost as a result. And while there are new jobs being created along the process, learning & adoption of the newly required skills by the existing workforce is on the slower pace. We are not only talking about the reduce need for those who work at grocery checkouts, bank tellers or those who work in manufacturing plants getting replaced by machines and robots. Yes, robots! Amazon had introduced more than 50,000 robots in 2017, improving vastly their operations while taking up a portion in its workforce.
And this is not just about job automation, but a significant change on market landscape affecting multiple industries. These so called 'disruptors' forcing several companies to shut down and making people's job obsolete.
Communication: post offices, fax machines, newspapers, human translators
Entertainment: cinemas, radios, traditional television distribution
Travel & Accomodation: travel agents, traditional taxi, hotels
Banking: brick-and-mortar buildings
Business: manufacturing workers, job recruiters, secretaries, phone operators
Hospitality: fast food workers, retail cashiers
Education: traditional teaching, libraries
Above is just a plain list of workers and businesses already getting replaced and displaced. The list is more in reality and will get longer and longer each day as the rapid changes in technology continues.
What Can You Do?
While we can't stop both pandemic and these technological advancements, you can make yourself prepared by doing two things:
1) Innovate: Continue to improve your personal God's gifts and skills so you can continue different forms of value to the marketplace
2) Diversify: Reduce your income risk & exposure by leveraging into sideline businesses & investment opportunities.
Innovation is the name of the game at this world we're currently living in. And the best person to know what you need to keep improving is no other than but yourself. Information is everywhere, take advantage.
There's a huge rise of employees doing sideline business, side hustles, business ventures. Home-based business opportunities are everywhere, available - left, right, centre. However, not all good and logical.
Having multiple streams of income would not only give you protection around volatile environment but more importantly get you closer to achieving financial stability. Take those rich businessmen, celebrities and athletes. While they are wealthy enough, they understand the volatility of the world's economy, so they keep on adding other streams of income.
You can start looking for extra source of income without sacrificing what you currently do.
By combining the best practices in different income streams, there's a smarter way of having an extra source of income.
This concept takes into account the time & money constraint, which means this allows you to continue working on your existing business and/or jobs.
Click here and maybe you can get some ideas.