Many people have lost their jobs during the pandemic. We are not sure when will the pandemic become an endemic, but one thing is for sure our day job may not be as secure as we once thought it was.
Why Do We Need To Have Multiple Streams Of Income?
- Diversify your risk
- Choosing the project you want to do
- Not placing your family future in other people’s hand
- Time freedom
- More Secure financial future
- Always have some spare cash for impulse purchase
- Easier to build an emergency fund
- You can choose a less stressful job
- Exotic holidays is not out of your reach anymore
If you are keen to find out more in detail, read on further.
9 Reasons Why We Need To Have Multiple Streams Of Income In Singapore
I realized the importance of having multiple streams of income after I went through a series of being fired from my job(it’s a cutthroat sales job) or retrenchment and rising commitments of starting a family. Anyway, it is not cheap to live in Singapore no matter how thrifty you are.
I will rather have 5 sources of income giving me SGD$1,000 each month rather than having all eggs into a job that pays me SGD$5,000/month. Here is a list of reasons that may make you reconsider on relying just on a source of income
1. Diversify Your Risk
This is less of a concern if your day job is in the government sector or you are still young in your 20s to mid 30s. However, your job security and prospects start to get bleaker as you age after that.
Unless you are a high filer and manage to go into senior management or C level position after 40 years old, it is just a matter of time your company bring in cheaper and high energy young blood to replace you.
Having multiple sources of income can cushion your expenses when you are in between jobs at an older age and also prevent you to accept a less than ideal role due to desperation.
2. Choosing The Project You Want To Do
If you are not just working for the money then you are free to do whatever is with your values or passion. Of course, in this situation, you may need to ensure that your total multiple sources of income are 1.5x of your day job salary.
At least you have a buffer just in case 1 source is affected and will not have to worry about paying the bills.
3. Not placing your family future in other people’s hand
Looking at how the pandemic has brought about massive retrenchments to many people globally, sole breadwinners are hit the hardest compared to dual-income families.
No matter how comfortable or how well you are performing in your job, note that no one can guarantee your job stability in the future. An easy measure of whether you are putting your family’s future in other people’s hand is this, how long can you survive if you lose your job tomorrow without serving notice?
If your answer is less than 6 months, it is time to rethink about your situation
4. Time Freedom
If you hate commuting to work or being stuck in a cubicle from 9-6, growing sizeable multiple streams of income may be one of the routes to get out of the rat race.
Imagine waking up or sleeping anytime, no more evil bosses barking orders at you and you don’t have to look forward to weekends anymore as every day is a weekend.
5. More Secure Financial Future
Everyone has worries about their financial future. It can be worrying about your health that affects your ability to work, it can be worrying about if you have enough money to retire.
According to a new study, nearly half (46%) of Singaporeans expect their family to care for them in retirement. It also revealed that almost half (48%) of respondents forecast they will not have enough money saved to sustain the lifestyle they want in retirement.
If you start building multiple streams of income and let it grow and snowball, financial future will be the least of worries during retirement age.
6. Spare Cash For Impulse Purchase
Whether is it rewarding yourself with a branded bag or the latest iPhone, you don’t have to scrimp and save pennies anymore. Having multiple sources of income allows you to have excess cash to spend besides your day job without the need to wait for the next bonus cheque to come in.
7. Easier To Build An Emergency Fund
According to Nerdwallet, the golden rule of an emergency fund is roughly 3 to 6 months of your expenses. Do take note this is catering for 3 – 6 months of your necessary expenses which include utility, water, rent or mortgage and car payments; food, health care costs, insurance, and any other debt payments.
In my opinion, this is definitely not easy to set aside when you have high commitments or do not have a high-paying job. However, if you have other sources of income, you may be able to stash away this amount in a fairly shorter amount of time.
8. You Can Choose A Less Stressful Job
It is a fact most high-paying jobs like senior management or hardcore sales job come with more responsibilities and stress. The scary part is when you feel trapped within the job you hated because you need the income to pay your bills.
Imagine you have other sources of income that make up 50% of your day job income. It is easier for you to slow down and find a job that pays less and is less stressful.
9. Exotic holidays Is Not Out Of Your Reach Anymore
Sometimes the feeling just sucks when seeing your friends sharing their exotic holidays experience on Instagram or Facebook. You realized no matter how you save, you cannot afford it and are only able to bring your families to nearby neighboring countries.
Imagine able to set aside an extra $1k or $2k per month from other sources of income to save for your exotic holidays. It may be finally your turn to show your experiences on your social media accounts.
[Related Article: How To Find Energy To Have A Side Hustle Plus A Day Job]
12 Passive Multiple Streams of Income Singapore Ideas
Here is a list of passive multiple streams of income ideas you can pursue in Singapore
- Flipping Websites
- Multi Level Marketing(MLM)
- Dividends Stocks
- Royalties income
- Real Estate Rental
- High Quality Bonds
- Bank Interest
- CPF Life(After 65 years old for Singaporeans ONLY)
- Crypto staking
- Peer-To-Peer (P2P) Lending
- Start A Youtube Channel
Even though all the above ideas will be able to generate multiple streams of income, it takes a lot of effort and time before it starts providing you some revenue.
There are definitely many other ideas out there besides the above-mentioned list but make sure that you do your own due diligence before deep diving into it. There are always scams and money traps looking to suck your hard-earned money.
You may also be keen on 35 Proven Ways That You Can Earn Money Online In Singapore!