The rising cost of living is having a global but different impact, and it is clearly evident that expenses and bills continue to rise sharply.
The cost of food, household consumables and other necessities has skyrocketed lately, from Cairo to Botswana, Delhi, Shanghai, London, Houston, Mexico City, Johannesburg, Mumbai, Dublin and Manila, name the. This price increase has increased as part of the consequences of the novel coronavirus (COVID-19), and this continues to reduce the available disposable income of the majority.
In the Nigerian context, a loaf of bread that was N350 in 2020 is now around N700, a 100% increase in two years. Similar percentage increases are in the cost of airfare, health care, rent, diesel, cooking gas, a bag of rice, a crate of eggs, a kilo of chicken or turkey and many other essentials due to inflation, but the income remained the same or even less. Nothing is easily affordable and everything is beyond the reach of the masses. Given the current situation in the country and the fact that many people have not seen their incomes increase, this has led to reduced or no savings, increased frustration and dissatisfaction with meeting basic demands. in many. There is always the possibility and anxiety of losing jobs or closing businesses, regardless of the length of service in place, experience gained or connection available, and these consequences can be even more severe.
Employers, in fact, are reluctant to implement wage increases for economic reasons. Inflation continues to have a serious negative impact on human mental, emotional and physical well-being, as well as on marriages and livelihoods.
Currently, even with a regular and regular salary, life has become more expensive with increased uncertainty, high inflation and low purchasing power, especially for the masses, including civil servants, entrepreneurs and owners of small businesses. Therefore, one of the ways to have protection is to diversify sources of income and have multiple streams at this time. You have several invoices; why not have multiple streams of income to support the shortfall.
Therefore, in addition to salary or business income, it is important to find other sources of income to meet growing needs, poor business performance and inflation. Because if the financial capacity is weak and daily expenses continue to increase, individuals, companies and even households will be threatened with sustainability. Therefore, there is a need for action as having multiple streams of income has proven to be invaluable.
According to my observations, the majority of people and households in the country depend only on earned income, whether it is a salary or daily income from a business, and they always hope that nothing bad happens. It is essential to understand that if salary is the only source of income, you are on the verge of financial pressure.
With high inflation, the unemployment crisis and an unstable economy, having many sources of income can help spread risk and ensure that homes and businesses are stable and financially protected. We live in a world where a single source of income is insufficient and is becoming increasingly unsustainable. If you ask me, having multiple sources of income is no longer a luxury; it’s a necessity. To be sure, it is never rational to depend on a single source of income, a full-time job or a single market. Remember that change is the only constant thing in life, and this change happens quickly during this time and is always unpredictable. Living paycheck to paycheck can seriously affect mental health and increase anxiety, depression and stress and many are unaware of the implications for their health.
Therefore, having multiple sources of income is the best way to protect yourself, your business and your family from drastic financial changes. The tools to generate these multiple streams of income are easily accessible on the internet or by hiring a professional. We have more access to information, people, ideas and opportunities through social media than ever before, so take advantage of it. While the average billionaire or millionaire has more than one way to make money, it’s important for professionals and business owners to think alike and have stable passive income streams in order to stay on top. financial and economic difficulties.
While active income will require your full attention and effort, such as being available from 8 a.m. to 5 p.m. every day, passive income is generated without effort or attention; it can work while you sleep. So, to complement active income, passive income such as investing can generate income in the form of dividends, interest, and return of capital.
Depending on the market and your financial situation, investing in real estate can provide you with high returns and rental income. But if you can’t build to generate rent, buy land and protect it; regardless of its distance, its value will increase. If you have years of experience in your field, you can start giving consulting or guest lectures as a way to earn another stream of income from your regular job or business. Another reliable way is to acquire assets that can generate constant and regular cash flows. Looking within can also help, talents, abilities and passion can be used to create potentials that can generate income streams.
Clearly, research has shown that having multiple sources of income in a plan makes retirement easier and provides the comfort needed in old age. Hear this: if a solid retirement plan is your goal, saving alone will be insufficient; instead, the goal should include developing many sources of income sufficient to replace your main active income (salary).
The main benefit or benefit of having multiple streams of income is that when one stream is contested or things are very volatile, there is a reserve of additional income to achieve financial stability. This can provide the necessary cover against uncertainties in a business as well as during illness and disability of the entrepreneur.
In conclusion, it is reasonable to live below your means to make room for saving and then investing, no matter how little help it brings with a side hustle. Relying solely on a daily salary or business income is a danger right now. In an environment where job losses and unemployment are chronic, the decision to create multiple streams of income and ensure financial stability is timely. However, don’t let your secondary sources of income jeopardize your primary, full-time job or business, unless you can’t survive without it. Good luck!
Olubiyi Ph.D. is an expert in entrepreneurship and business management. He can be reached on the Twitter account @drtimiolubiyi