VirtualVocations

Creating Multiple Streams of Income

When I worked for a large manufacturing company years ago, they once had to lay off half of their work force because they’d built their business around one major client.  When the client took their business elsewhere, the manufacturing firm suffered a crippling blow from which it took years to recover. 

I learned an important lesson from that experience.  As the age old saying goes, “Don’t put all your eggs in one basket.”   

One of the keys to financial stability in an at-home career is having multiple streams of income.  In my own business as a freelance writer, this means writing for multiple clients on the web, as well as in print.  It also means writing on different topics and for different genres.   

Today’s at-home workers have many options for creating new income streams.  Those who work in professions such as medical transcription or customer service may wish to consider working for different employers.  The only caveat here is to make sure there are no noncompete clauses in your contract.  

Many successful at-home workers have income streams coming in from unrelated ventures. A good example of this would be operating a day care center, being a demonstrator for an in-home party plan, and operating an internet business.     

Whatever you choose to do, you’ll want to add and establish one income stream at a time.  If you find you don’t enjoy the work entailed in a particular venture, leave it behind and move on to something else.  It will likely take some experimentation to find the right mix for your own circumstances.   

Be sure to keep good records as you build your streams.  Depending on your circumstances, you may need to report financial information on each business separately when tax time rolls around.  Although this may seem like a hassle at the outset, you will soon find the recordkeeping system that works best for you, and you’ll find that the peace of mind that comes from having additional sources of income is worth a bit of extra work. 

Stock markets will rise and fall, and recessions will come and go, but if you have multiple streams of income, your own financial boat will stay afloat come what may. 

Posted:Wednesday, January 30, 2008