Many people have learned over this last decade that many of the things on which we have depended for decades are not as secure as they have expected. Genuinely secure employment may be only an illusion since we often see how volatile the economy has become globally. There are millions of people for whom their day job is the only source of income, and when for some reason, that income is lost, these people can find themselves in dire straits.
With a second stream of income, you can take more risks and increase your job security situation. The second income stream can allow you to do work that you love, and that could make it seem more like a hobby than a job.
Getting rid of debt
Thousands of students are graduating today, and they enter the marketplace with more debt than any previous generation. Statistics show that debt, which was attributed to student loans, has reached record heights. Apparently, the average bachelor’s degree can result in debt more than $30,000. Some graduates will open a new side business just to obtain a little breathing space and to help them to repay those debts. Others are trying their hands at investing in things like property or stocks.
Increasing student loan debt is now resulting in many people who are asking whether a college degree is worth all of that hassle. Many are forced to learn new skills and to offer them as service to others, such as freelancing.
Increasing numbers of people find themselves in a situation where they struggle to make short term decisions since they are so overwhelmed by financial pressure that long-term decisions are not even considered at present. However, it must never be forgotten that any efforts which are invested into a second stream income could eventually grow into a very profitable long-term return on investment.
You may eventually find yourself in a place where you share your knowledge using blogs, videos, or podcasts. There is a large number of second stream income jobs, many of which can be done from home, which can provide people with sustainable income possibilities.
The declining value of Social Security
For many people, the promise of Social Security, which becomes available at a certain age, has always been considered to be a viable solution as far as future living expenses are concerned. The problem is that even Social Security is now expected to fall away within the next decade or two. However, there are many people who have an expectation that Social Security will someday be available to help them survive financially. This is exactly why it’s so important to investigate second stream income possibilities and to find one which will be suitable for your individual needs.
Problems with pension schemes
People were conditioned to expect that when they have invested 20 or 30 years at a company, then they could assume that the rest of their life will be secure financially until the day they die. That assumption may no longer be valid, and people actually require an additional retirement plan. This can come as a shock for many older adults.
Increasing numbers of young people are struggling with student loan debt, and besides that, the employment market has drastically changed. Young people are left with no other choice but to ensure that they become self-reliant as far as their financial future is concerned. This is exactly why it is so important to start very early to look at multiple streams of income.
Innovation is rewarded
Governments fully understand the gravity of the situation, and this is why the new Tax Cuts and Jobs Act of 2017 is now rewarding people who receive an additional income because of self-employment endeavors. This is those people who engage in online and home-based jobs.
Furthermore, any business income which is paid to an individual as a sole proprietorship can benefit from a 20% reduction in tax. People are encouraged to investigate the matter for themselves because various benefits can be obtained based on the second income, which is chosen by individuals.
When creating additional income streams such as engaging in some online activity, such actions will require a lot of determination and dedication. People must know what they’re getting into, and in one way or another, they will have to find a way to motivate themselves and to ensure that they persist with their endeavors until success is obtained. Doing so may be more comfortable for individuals who are still young. This is because later in life there may be a family and children which will place additional demands on your time.
An individual requires a substantial amount of energy to not only start a new business but also to persist in that endeavor until the business becomes profitable and sustainable.
There is some leeway for young people.
When someone is still relatively young, and with little or no family-related responsibilities, then it is possible to take calculated risks that may not be available to older people. It will be relatively easy to become involved in online business, and it is relatively safe to make a career change. Such options may not be available, or it may be extremely risky when there is a family or home on the line.
Every entrepreneur will always be forced to consider the possibility of failure. However, when someone is still relatively young making mistakes is never quite as devastating as they will be at some point in the future when the situation may be different. When you are young, mistakes provide the opportunity to learn, and these experiences should best be learned while the person is young, long before an individual have a family and a mortgage.