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PERSONAL FINANCE

The Top 3 Mistakes to Avoid When Building Multiple Income Streams

Most people rely on their 9–5 job as the main source of income. That’s okay, until things like COVID-19 hit.

We continue to see layoffs in 2024. The global economy has yet to improve, and job security seems uncertain for many.

With inflation, debts, and dwindling savings in bank accounts, working a regular full-time job will no longer suffice. Many people ended up in tents and cars across cities.

Right now, the idea of building multiple income streams has never been more popular. Imagine never having to worry about getting fired from that only job you have and struggling pay bills on time.

Having money coming from more than one place also helps to cut a large chunk of time in paying off debt, building retirement fund, and even on building wealth.

However, there are mistakes people make that ended up sabotaging the process when it comes to building multiple streams of income. Here are the top 3 mistakes to avoid in order to establish solid multiple income streams for your financial security.

Photo by Alexander Mils

Mistake #1: Not specializing in one stable income stream

It’s tempting to think that money will come quicker by having multiple things running at the same time, but this is, in fact, the fastest and easiest way to fail.

Soon you’ll find that you have wasted a lot of time and energy on chasing the things that you’re not good at, yielding poor to no results in the end.

Instead, focus on the one thing you’re good at and then expand from there. This would be the real shortcut.

Find the one thing that you excel at and master it. Your expertise in a domain will raise the value of everything you do revolving around it.

Mistake #2: Comparing yourself to others

Paying too much attention to people’s claims on their exciting revenues per month can derail you from your own goals.

Don’t compare. Their achievements have nothing to do with you.

Don’t abandon your own ship and try to hop onto others’. Their ships are most likely not for you.

Everyone has something they’re good at. You only need to focus on yours and have fun doing it.

Mistake #3: Not having clarity on what you want in life

The purpose of having multiple income streams is to attain the financial security which improves one’s quality of life.

It defeats the purpose when you are overwhelmed by what you’re building.

Therefore, it’s important that you have clarity on these three things:

  • The time, energy, and resources required for the goal you set
  • The time, energy, and resources you have right now
  • What you want in life

Be prepare to face challenges, but only those that are necessary and within your own capacity.

Having clarity about what you want in life helps you avoid unnecessary sacrifices.

Recap

To successfully build multiple income streams, avoid the following pitfalls:

  • Be a jack of all trades but master of none
  • Compare yourself to others
  • Not knowing exactly what you want in life

Feel free to comment 💬

Do you have multiple income streams?

If so, what mistakes did you make when building them?

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