Following seismic job market jolts driven by the pandemic, technology layoffs, inflationary pressures and automation scares, several individuals across the globe, are seeking ways to diversify income streams. Let’s just say there’s a fair bit of fear out there!
But just as your lives and careers are unique to you, your solutions must also be unique. As an executive coach, I often spend time with my clients to understand their deepest desires and innermost fears, and help devise solutions that are right for them. I cannot stress enough on this because in a panic to have enough to live, some of us are forgetting to live.
So in this short article, I’ve summarised five ways to rethink income diversification that may help get your plan together.
Why it matters?
As mentioned above, many of us have witnessed life quakes in the last few years and want more control over our circumstances and financial wellbeing. While holding on tightly to current jobs is one plan, it helps to sit back and visualise the life you’d like to live and how you’ll fund it. Doing so can help you sleep in peace no matter what. Though there may never be a need for you to diversify your income streams, knowing that you have it covered is a great outcome.
1. Will you run out of income or time?
First things first – why do we worry? We worry because we want to be able to live well, perhaps leave something behind for our families. We don’t want to be faced with situations where we have years ahead of us and no money to take us through. Sure. I get that.
Yet, in a rush to amass more wealth, many run of time to truly live. Some top regrets of the dying are that they wished they’d worked less and spent more time with loved ones. I’ve brought this out as a first consideration because as I said, you want to ensure you have enough to live, yet you also want to remember to live. It’s a balance, not a race.
2. Do you want to work for the money, or the money to work for you?
There are ways to grow your income and as we know, not all of them relate to you working for it. If you’re making a reasonable income already, or have some savings and investments, maybe you’d like to put that money to move effective use.
I’m a huge fan of investing basics such as dollar cost averaging and compounding. Others believe in income streams, such as rentals, and so on, but the point remains the same – it’s about getting your money to work for you while you work for it.
3. Do you wish to toil and retire or slow down gradually
Another factor to consider is if you’d like to remain gainfully occupied as long as you can or if you’d like to work hard until a set age, and then be done with it!
It’s a bit like exams, some of us study all year long, while others sit up the night before the exam.
4. What are your thoughts on downsizing?
This one’s about quality of life. For some people, they wish to spend a lot in current lives and are glad to downsize later when the kids are gone and so on, while for the others, it’s the reverse as they’d like large homes for the grandkids to come by when they like.
Again, not one size fits all. You might be single, married, have dependents or have no one to look after…and so how you shape life will depend on your unique circumstances.
5. Are you the sort of person that likes doing multiple things?
This one comes down to personal preference as to how we like to live and work. Though the gig economy sounds trendy, many of us like to commit to one cause and put all our energy into it – and that’s okay! In fact, it’s a much needed skill. If there’s something you love to do and want to do with single-minded focus, by planning well, you can find a way.
While income worries continue to keep many of us up at night, it doesn’t have to be this way. Through careful planning, you can take better control. Gig economies and portfolio careers are becoming increasingly popular, yet they’re not for everyone – and don’t need to be.
If you wish to take time to determine how you can become more resilient and relaxed, while remembering to live, then please get in touch for a coaching session. I’m also available for speaking sessions and cover various topics such as impostor syndrome and self-doubt, confidence, leadership skills, life balance, and much more.
Finally, if you enjoyed reading this, please share this with others who might find it useful.