Yesterday, we talked about increasing your income as a step towards financial independence. While asking for a raise at work can help, it’s essential to remember the calculations we discussed on day 3. To generate $1,000 a month until age 95, you’d need $750,000 in savings. Alternatively, renting out a property for $1,000 a month can be much cheaper than saving up for that huge amount.
The main takeaway is that your regular job alone won’t make you rich. Earning more can speed things up, but it’s still not fast enough if you’re solely relying on employment. This is why it’s crucial to explore and create additional income sources.
Picture this: you need $1,000 a month to be financially independent, and your blog is making $50 a month. That’s great because now you only need to find $950 more each month.
Income can come from various sources like blogs, websites, affiliate sales, renting out a room or property, investing in stocks and shares, or even selling items on eBay. The more income streams you have, the lower the risk of losing all your income at once.
When I left my day job, I was tutoring a few kids and writing for multiple websites. Then the recession hit, and parents could no longer afford tutoring. Fortunately, I still had my writing gigs. When one of the websites had to cut back and stop my assignments, I was still fine because I was earning from renting my place. I even have unconventional investments like live cattle and coconut trees!
You never know, even this blog could generate income one day. The key is to establish as many income streams as you can. This strategy not only helps you reach financial independence faster but also makes you less vulnerable if one source dries up.