MSI (Multiple Source of Income)

If you haven’t known by now then it is not too late for you to realize that everyone needs multiple source of income. The current pandemic has just accelerated many things such as GIG Economy, Work from home concept and more than ever everyone needs multiple source of income.

One might wonder how can I get multiple source of income when I am already time broke working full time in the corporate for 10 – 16 hours a day? This is one of the most important if not the most important lesson you need to learn after the ESBI. The title is multiple source of income and it is not multiple jobs. More than often we associate in order for us to generate multiple source of income, we need to do more job. That is not the right mindset which we need to eliminate as quickly as possible.

You don’t need more jobs in your life but you need to understand how to create different source of income so that when one of the sources is having challenges, you are still well covered. Before I shared how you can do this, let me first explain why this is so important to everyone. I am a number person so let me work it out down to detail for you to understand the importance of this.

Most of us started as employee and when we trade our time for money, that is called active income. When people are being surveyed if they were to lose their job, how long is their saving can last them before they get another job. More than 60% answered less than 6 months, 20% less than 3 months, 10% less than 9 months and 5% - 10% can last for more than 12 months.

This is a big problem in the society today because most people do not have any Plan B. Even if they have, it will not be enough to cover their main source of income. Just imagine if your main source of income is to cover your bills, house, car and others expenses so definitely your Plan B might not cover 100%. If the Plan B can cover 20% then what happen to the balance 80%?

This is the reason why we need to create multiple source of income so that when one source is depleting, we still have other source pouring in so that we won’t get stuck in depression.

Ok now I get how important it is and how do I get started? Well there are more than one way to skin a cat so you can start diversify your EPF into mutual funds, invest in property or some insurance investment fund, stock trading and so on. Alternatively, you can also start building your side business that can generate passive income to you. I will cover more on passive income in the next topic but it is no longer a myth that the passive income does exist and people are already earning money while they sleep.

If you still do not know how or what to do next, I suggest you reach out to any mentor or someone who has done it so that you can copy of what they do.