Twenty years ago, there are very few people talk about multiple sources of income, as keeping a job was less of a concern back then.
Countries like Japan used to have what is known as a lifetime employment system.
This is how the system works: Japanese companies hire regular employees right out of school and keep them until retirement.
This benefits both parties; the company saves on training costs and the employee is secure in the knowledge that they will always have a job.
In the 1990s, during a prolonged economic recession and with an ageing workforce, the lifetime employment system has begun to break down, and it seems like it’ll never make a comeback soon.
Today, no job is 100% stable because of the drastic changes in the world, so at this point in time, the thought of having only a single income started to seem risky.
Therefore, people came up with a conclusion; everyone should have more than one source of income.
Why Having Multiple Sources Of Income Is Increasingly Important
You often see rich people having no concerns to spend money on everything, and you’d think “If only I can be rich like them.”
Having multiple sources of income will help you to expand your wealth and life by achieving financial freedom.
They can be where they are now only because they have multiple sources of income.
Tom Corley, author of “Rich Habits”, did a 5-year study comparing the habits of millionaires and the poor and found 65% of self-made millionaires had three streams of income.
KC See is a big believer in the concept.
As the founder of the Money Mastery Mentorship Programme, he has enabled thousands to enhance their lives, achieve the financial goals they have dreamed about as well as the quality of life they have always wanted.
However, being wealthy is not the only reason why everyone needs to have multiple sources of income.
Here are a few reasons why having multiple sources of income is important:
Layoffs Amid A Sluggish Economy
Many experts and economists are already discussing the horrific economic crisis that will possibly dawn upon us soon.
Political uncertainties such as the ongoing trade war, political unrest and geopolitical risks have significant impacts on economic conditions and it isn’t going to let up anytime soon.
It doesn’t matter who you are and where you are. Once the crisis finally arrives, nobody can run away from its brutality.
Thus it’s not surprising that many companies are taking steps to dismiss a significant number of their employees in the current economic situation to save their business.
In this case, do you think your single income job is 100% secure?
There is no company out there that can promise you 100% security even if they’re well-established.
Confusion Rise Under Uncertainties
Economic and political uncertainties can be volatile and confusing. Decisions will be hard to make because of the what-ifs you will start to overthink on.
Questions will begin to come across your mind:
- What if I start investing in properties, and the value suddenly goes down?
- What if I waste money buying stocks and suddenly the economy improves?
Crisis such as economic depression and international relation conflicts are quite unpredictable because of their volatile traits. Thus, it’ll be hard to run the risk at such times.
New Technologies Threaten Job Security
Job insecurity is also triggered by the invention of new technologies. Artificial Intelligence (AI) technologies are invented to operate and manage certain jobs at full speed and little room for errors.
Sooner or later, companies might not even need people with basic skills anymore. Your chances of getting laid off will then be increased.
For instance, advanced technology like a driverless car in Singapore had people talking about turning busses driverless. Eventually, there will be layoffs and retrenchments. It only comes down to whether you survive it or not.
More importantly, AI not only will be taking over human jobs, but it also monitors employee productivity and fire a human worker that doesn’t reach its target KPI.
Fast-Changing Work Environments
Did you realise that the work environment has changed drastically over the last decade?
When you searching for jobs, employers will want to know that you have the ability to multitask successfully and use technologies to increase your productivity and efficiency.
The working environment will continue to change as new technology emerges and companies tend to focus on high productivity and efficiency.
Not only that, as too many changes are happening, many people won’t have the time to truly grasp on the new expertise, and if there’s no effort to do so, getting hired will be much harder.
With the inventions of new technologies and job scopes, there’ll also be a demand for people with new skills and expertise.
Business Displacement Risks
There are displacements going on; you can’t rely on companies to look after you anymore because they are going through tough times to survive.
Take a look at the telecommunication industry. How many of us still own a Nokia phone? Asking this 10 years ago would’ve had high chances of people saying they do.
Today, no one owns a Nokia anymore.
In a short span of time, a perfectly robust, stable and successful company could be wiped out simply because of technological advancements. Unquestionably, once a company gets wiped out, jobs are laid off, and workers are displaced.
How To Create Multiple Sources of Income
Want to learn how to start your own multiple sources of income but don’t know how?
The Money Mastery Mentorship programme would be a good place to start.
KC’s programme has mentored and coached over 120,000 people from all walks of life, helping them achieve financial independence through a personalised wealth creation system designed according to an individual’s passion and strengths.
He has coached over 120,000 people over 20 years, making it one of Malaysia’s longest lasting and most trusted wealth creation programme in the country. The graduates include:
- Ahyat Ishak – Founder Of Pejuang Hartanah Community. Having started his property investment journey more than a decade ago, he became a property millionaire before the age of 30.
- Jerome Tan – Founder of PIP Holdings Pte Ltd, Singapore’s leading property investor and owner of over 100 properties, Jerome was famously known as the man who was a bankrupt before becoming a millionaire. He is also an author of ‘From Bankruptcy To Multi-Millions In 7 Years’.
- Dr Katalina – a Certified Aesthetic Doctor with the American Academy of Aesthetic Medicine, is also a famous model, actress, singer & brand ambassador.