What Color is Your Money?

​Diversification. I’ve been teaching personal finance to teens, college-aged, and older adults for over a decade, and as a certified personal finance coach, the concept of diversification is one that comes up every time.
 
What do I mean by diversification? Well, for the focus of this article, I’ll be sharing the importance of having multiple income streams. I envision each income stream as a different color - providing opportunities to make your life fuller, richer, and more colorful.

Why is diversification important? Well, we all saw what happened during Covid regarding many people losing their primary and only source of income. And while the loss of income due to Covid policies was something unprecedented and far-reaching, losing your primary source of income happens to individuals all the time.


How will multiple income streams benefit you?

Consider that multiple income streams can do the following:

• Minimize the risk of loss to your full household income
• Expose you to more organic opportunities for return
• Safeguard you against income adversity due to illness, loss of job, etc...
• Reduce volatility and the havoc that is brought on by the loss of primary or full income

 
Of course, tightening your budget, reducing unnecessary expenses, and seeking a pay raise can help bring in more income, but the focus is not just to increase income but to add a variety of income streams to protect yourself.
 
 
Start with your interests
 
So here are a few high-level suggestions for additional income streams:

1. Generate Investment Income
2. Generate Rental Income
3. Open a Side Business doing something you’re passionate about
4. Empower yourself and others through a quality network marketing business
5. Start a blog or another channel to monetize
6. Take paid surveys
7. Become a Secret shopper

etc...
 
I am personally familiar with all but the last two and know them to be viable sources of income. My husband and I have been investing since our late 20s. My parents had multiple rental properties. In addition to having my own business empowering companies with specific tech solutions, another area of deep interest for me is in natural health and wellness, which I started exploring and then diving into almost 30 years ago. That led me to start a network marketing business in the health & wellness area.
 
 
Be discerning and evaluate opportunities
 
When evaluating any opportunity, it’s wise to be discerning. As an example, when considering a network marketing business, the following are critical for success 1) a company of integrity, 2) quality products, 3) a strong compensation plan for everyone, and 4) a mission of empowerment. While some may not agree, if these attributes are present, I truly see network marketing as a viable business model for generating income.

After evaluating with discernment, I started with a network marketing company in the area of health & wellness in 1997 and another on the ground-floor in 2021. Although initially you won’t know positively if it will be a great opportunity, just do your due diligence and if it seems a good fit, dive in and see where it takes you. You’re in control to pivot as needed.
 
So, consider a few ideas that are a good fit for additional income streams for you, and get started. Diversification can color your life and income richly. And while you’re not going to get rich overnight, it does tend to add up with hard work. And then with wise investing and compound interest, you can create another income stream --> investment income, where your money will go to work for YOU.