Why A Second Income Stream Should Be Your Top Priority
In my previous article entitled, “My Four-Pronged Strategy Towards Financial Prosperity,” I talked about a second form of income. I also described this second income stream as passive income. Today, I am going to discuss why this should be the top priority of all 20-somethings looking to build wealth.
Defining a Passive Income Stream
A passive income stream is a form of income that supplements the income you receive from your main job. We label this income stream as passive because the goal is to derive some income without having to work more than a few hours a week for it. A second form of income begins as a supplement to your salary or other forms of income and can potentially grow to rival your main income or even replace it. Either way, as that trend grows, you should be bringing in more money with less effort.
You Won’t Get Rich From Your Salary
The bottom line is that the vast majority of employees do not get wealthy from their salary. In just about every case, your cost of living rises in tandem with your rise in salary. In many cases, people with higher salaries have more debt than people with lower salaries. It is time for people to view their salary as a smaller part of their overall financial picture (as I discuss in the Four-Prong Strategy).
Your salary can provide you the means to get rid of debt, start an investment plan, and even enjoy a nice little lifestyle. If you desire true financial freedom, you are going to have to put that salary to work in other ways such as a second income stream.
It Is Easier Than Ever To Establish An Additional Income Stream
With the internet and e-commerce technologies, it is easier than ever to start an income stream. The upfront capital needed to launch a side business is minimal.
The 20-Something Advantage
If you’re in your 20s, your career is important. You should take the opportunities to work hard and accept additional responsibilities in order to shine at your job. However, if you’re in your 20s, you most likely have more free time than others. Most 20-somethings do not have families and do have the time to work on side projects. If you are willing to work outside of your main job to get a side business off the ground and you have the free time, then now is the time to make it happen.
Your goal is to establish a business selling a niche product that runs itself with only a few hours a week needed. It is not as hard as you think and really only requires your determination. A second income stream is the difference between living paycheck to paycheck and having money left over to put away and to live the way you want. A second income stream is the difference between early retirement and working into your latter years. A second income stream could be the difference between achieving your financial goals and not.
Look for my next article explaining tips and ideas for implementing a second passive income stream.
Have you started a side business that is generating additional income for you? Share your story here by adding a comment below.