Why and How You Need to Diversify Your Income
Learn how you can protect your family’s finances and open up more opportunities by diversifying your income!
Why You Need to Diversify Your Income
Diversifying income is something every family should consider. It can not only give you a bigger safety net, but it does give you some more options no matter what stage you are in your financial journey.
Here are a few scenarios where diversifying and increasing your income can be helpful.
We're still not out of the woods when it comes to the financial impact of COVID.
In April, 9.4 million people reported that they were unable to work because their employer either close or lost business due to this pandemic.
As you can probably guess the more income you get, the higher your chances of saving.
In 2019, the median bank account balance for American households was 5,300. What's interesting is when you break it down by income, how drastically that changes.
For a family that's in the 40 to 59 percentile of income, the median savings was 4,400. You moved to the next bracket, 60 to 79%. You're looking at 10,000. The next one 20,000 and then finally 69,000.
Having income to take care of essentials means you can then take that so-called extra income and put it towards financial goals, including savings.
Finally, if your family is on the financial independence path, then increasing your savings rate can speed things up for you when you'll hit your FI number.
For example, if your savings rate is 15% then you have 43 working years until you retire. If you bump that up to 30%, then that drops down to 28. You move up to 45% and it becomes 19 years.
You're literally buying back your time when you're increasing your savings rate.
So hopefully it’s clear why you need to diversify your income. The question is now about finding the right ones for your family.
Side hustles are a popular recommendation, especially online, but they're not your only option.
Which is why I’m so happy to have Michelle Jackson on today. She’s an author, podcaster, and entrepreneur.
Not only has she developed these business and income streams, but she’s found a bit of balance with juggling them.
In this episode, we get into:
- different types of income you can earn
- Pros and the cons of them
- how to decide which income path is right for you
Let’s get started!
Resources to Diversify and Build Up Your Income
If you’re looking to boost your income, here are some helpful resources to earn more money and manage it better!
- Best Budget and Money Apps: Personal Capital, Tiller, Mint
- Jumpstart Your Marriage and Your Money
- Finding the Best Side Hustle as a Married Entrepreneur
- How to Build Income Streams to Knock Out Your Money Goals Faster
- Brand Building Lab
- Make Money with e-books
- How to Create a Family Budget You Love (and Actually Works!)
Thank You to Our Sponsor Coastal!
Support for this podcast comes from Coastal Credit Union! If you’re living in the Raleigh Durham area and looking to bank better, come check out Coastal today.
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Support the Podcast!
Thank you so much for listening to the podcast! If you enjoyed this episode and found it helpful, here are some ways to support it.
- Spread the word! If you enjoyed this episode and think it can help a buddy get on the path to dumping debt and become financially free, please share.
- Leave a review. Honest feedback and reviews make a big difference and gets the word out about the podcast. Leave your rating and review on Apple Podcasts.
- Grab a copy of Jumpstart Your Marriage and Your Money. My book is designed for a busy couple to set up their finances in 4 weeks. Get tips and tools that have worked for other couples on their journey of building their marriage and wealth together!
Our theme song is from Staircases. Additional music by various artists from Audiio.
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