Most women have a standard day job. They never think to look for opportunities beyond this, nor consider whether there are other professional avenues that they might like to explore. They are content to exist within the familiar strictures of their ordinary employment, unquestioning of that which they don’t know.
For other women, this isn’t enough. You might find that although you enjoy your job, your mind is seeking a new challenge, or else you’re considering other ways to help you maximise your income.
Understanding the options that are available to you is only the first step in transforming these lingering thoughts into a useful reality. There are many different ways in which you can diversify your income, and if you only do your research, you’ll be confronted with a world of opportunities.
From starting a second business to finding a new way to share your skills, investing, or even freelancing in your spare time, here are just six reasons that you might want to think about diversifying your income…
As we mentioned above, there are numerous ways to diversify your income, from investing to creating a second business, but all of them share one major benefit in common: they’ll significantly improve your financial security. Although putting a little aside over the years can help you to create a comfortable cushion in the event of a rainy day, many women have found to their detriment that this isn’t always enough. Should you or your partner lose your job, a major, unexpected bill materialise, or the cost of living rise, relying on a standard income alone means that you’re not always indentured against disaster. Where you have a secondary source of income, however, you have an additional safety net to catch you if you should fall, and the practical benefits of this simply cannot be overstated.
#2: Maximising Your Earnings
Security is undoubtedly a point in favour of diversifying your income, but it can largely be achieved by careful budgeting and regular saving over the years. An advantage that cannot be so easily achieved through other means is maximising your income. For most, the decision to diversify is driven by a desire to earn more, whether this is for purely material reasons or a wish to have more in the bank for when you retire. Irrespective, diversification will often deliver much more tangible long-term results than either seeking a promotion or working extra hours, neither of which can be realised simply by demanding them. Diversification allows you to take your future into your own hands, and make a conscious decision to start bumping up your earnings. Whether it’s investing, creating your own online business on the side, or freelancing your existing skills in the evenings or over the weekends, two income sources will always prove more lucrative than one.
#3: Looking to the Future
As we mentioned above, one of the main reasons that you might have for wishing to diversify your income and thus increase it is because you’re preparing for your retirement. This is not something that has to wait until you’re in your 50s, and indeed most experts encourage people to begin laying the foundations for their future as early as their 20s. The beauty of diversification, of course, is that it’s a gift that keeps on giving, and especially in the case of investments, profits can endure well beyond your working years. If you’re looking to feather your nest for the decades to come, then income diversification is ideal.
The benefits of income diversification are not always entirely material. A lot of people who initially explore the idea are actually searching for enrichment, either because they feel that their job has become a little stale, or because they have an interesting idea that they would like to explore. If so, there are many ways that this can be achieved, from freelancing skills attached to a hobby, such as horse riding or piano playing, to creating your own online venture, or trying your hand at investing. The ideal choice will of course be down to the individual, and what they feel will deliver the greatest level of satisfaction.
#5: New Skills
Tied in to the idea of enrichment is the ability to develop new skills. However young or old you are, there is always time to expand your repertoire, so whether you’ve always dreamed of writing a novel on the side, or you’ve often thought that your talents would be well suited to the investment markets, diversifying your income sources offers the opportunity to try your hand at something new and use it to increase your annual turnover. Investing, in particular, can be used as a prime example, especially if you go down the route of controlling your portfolio yourself. A lot of people love the newfound sense of exhilaration and risk that they might feel has disappeared from their lives as they’ve grown older and more responsible, and when they see the profits mounting alongside, diversification usually feels like it was a very good idea.
Last but not least, diversifying your portfolio can be a healthy outlet for your ambition. If you’ve reached the pinnacle of your professional career, and there is no higher for you to climb, it can begin to feel as though your life is lacking the rapid acceleration that you’ve become accustomed to. But this doesn’t mean that you need to have reached the final heights of your success. If you’ve achieved all of your goals in one area, looking for a secondary source of income can help you to set new ones. You may be the CEO of a company, but what about creating your own business, or starting to trade on the currency markets? The more strings that you have to your bow, the higher your successes can mount, helping you to attain that constant sense of forward momentum that the ambitious so love to feel.
If you’ve been considering your financial future, could diversifying your income be the perfect next step for you?
Author: Ben Barlow