Why Do I Want Multiple Streams of Income?

Freedom.  I got a reminder/wake up call tonight about why I want multiple streams of income, and it is simple it is freedom to do what I want and when I want (within reason, of course).

I have mentioned in the past, that in addition to my job I also practice law, it is mainly a small (but growing one client at a time) trust and estates practice.  I do mean small with only a handful of clients thus far, but I am working on growing it.  Well, tonight I visited a new client at his house, and that client has given me a new found push to refocus myself.  It was weird, because I was technically working, but my batteries were being recharged at the same time. How?

I got to the guy’s house at around 8pm…he walked in with me.  I asked if he normally got home around this time, his response was yes.  As we walked in he was with his daughter and wife for about 20 minutes before it was time to put his daughter to sleep.  I have known this particular individual for years and consider him a buddy, so I know this is not an ideal situation for him.

I don’t pretend to know what the answer is for this buddy, I don’t understand his job field nor do I understand his Wife (great girl, just different values than me), but instead I can try to learn from the situation.

I don’t have a child yet, hopefully soon, but I know if I only saw him or her for 30 mins out of the day…something would have to change in my life.  Would it mean changing jobs? careers? use of free time when the kids is sleeping (i.e. this blog lol)? Maybe…

I know my buddy is in a tough spot work-wise, but I am not right now, so why not prepare for that inevitable day where I am in a tough spot work-wise by creating multiple streams of income?

16 Responses to Why Do I Want Multiple Streams of Income?

  1. There is only one guaranteed stream of income, and that’s the risk free interest rate that your cash savings produces.

    Once you have that big nut, you really don’t need to worry about finances again!

    • Damn it! With today’s rates I am far far away from that.

      I should have clarified that I meant if I only saw my kid for 30 mins a day, I could tell my job “PEACE OUT” knowing I had other streams of income which would sustain me until a better ‘job’ came along.

    • Two comments:
      1. No such thing as risk free. Every investment has risk.
      2. While you don’t have to watch over dividend/income investments the same as a business, It’s not completely “passive”.

  2. If I could only see my kids for 30 minutes a day I’d go nuts. For awhile I was working a second job 2 nights a weeka and they’d be sleeping when I got home…it was brutal. I feel bad for parents who have to do that all the time.

    • That is tough. I know it is a reality for lots of familes, probably more than most would like to admit.

      I always say to my wife, you do what you have to do for family. For me it is that simple. But if I could do something today that can pay dividends in the future, why the hell wouldn’t I?

      • That’s why you’re smarter than the average bear…you think and plan ahead.

        Having multiple streams of income is important to me too because it helps protect you. If one stream dries up you can rely on the others.

  3. Totally agree, if I was only seeing my kid 30 min a day, something would change very quick. I have a good situation now, even during tax season I’m home by dinner time, but the partners work much longer hours. I don’t want to be like the frog in a pot of water and not realize it’s boiling before I can get out.

    I’m trying to grow my list of clients as well to give me the option of either staying at the current firm but working more on my own terms, or possibly going off on my own someday. How have you been able to find clients, Evan?

    • Wow you work less than the partners? I am shocked to hear that.

      I am still in single digits on terms of clients (literally) and they are all referrals – friends friends or friends of family. I have no magic formula it would just be networking with other professionals.

      • Maybe I already have it good and I’m being greedy? I guess I don’t think it’s weird since it’s their firm. I think some things they do could be pushed down or automated/eliminated, but sometimes they can’t let go of things.

        I have 3 clients so far, 1 friend and 2 referrals. It’s a slow process I guess. I haven’t been that active in the past trying to get new ones until this past year really.

  4. Wow, 30 minutes a day is though!

    I’m luck, I’m home by 4:30 pm (staggered work shift) and I telecommute at least once a week.

    Blogging lets me blow off some steam, but I need to cut back on the time I’m involved with it a bit. Perhaps doing it after my kids go to sleep would be best…

    Luck to you with your side business, sounds like a smart move!!!

    • Wow 4:30pm that’s early (or late I guess depending on what you do) and you get to telecommute?

      Ramit has an interesting opposing view that you may want to check out. He basically says focus on the money maker (job) before trying to branch out

  5. I don’t have kids yet, but I know exactly what you are talking about. I really want to create some streams of income that will allow me spend as much time as I want with them once they get here. Hopefully I still have a few years left until that happens :-)

    • Its funny I remember saying, “Have time, a few years, etc.” and then when The Wife and I took our gloves off (metaphorically speaking of course) it didn’t work out well for us.

      Hopefully that will change.

  6. I think of the keys to creating multiple streams of income (MSI) is that it forces you to use leverage. You basically must use other people to make it work.

    Think about it. You cannot manage all these different streams by yourself. If you do the streams will either dry up or you will burn out.

  7. what a sad story, and it definitely is going to push me harder to create a life where i dont have to work 80 hours a week. What good is the money you are making if you cant spend it with the people you care about is what I will ask myself if i ever end up in this situation.

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