There are many reasons why people might want to diversify their income. Low wages make multiple jobs necessary for those who can’t afford daily essentials like housing and food with one job. For others, multiple income streams allow them more purchasing power for significant investments, like a house. Finally, some people rely on the extra income to help them pay down debt.
Whatever your reasons, it can be a challenge to manage multiple income streams. But, if you keep your goals central, stay organized, and make your money work for you, you can reap the benefits of multiple income streams (without the headache.)
Remember Why You’re Earning
You may feel a bit overwhelmed juggling multiple jobs and side hustles. After all, it takes a lot of hard work, and burnout isn’t uncommon. Luckily, years of research into the human psyche have shown that the key to long-term success (in any task) is setting and sticking to goals.
Goals create momentum because they give us a reason to put in those long nights or wake up a little earlier. So the first tip to help you sustain multiple income streams is to get clear on your reasoning. There are endless resources on goal setting, but the key is to articulate the main benefits of the extra income and how those benefits will improve your life. You can also write down exactly what your money is going towards (rent, saving for a house, etc.) and keep that list close when times get hard.
It can also be helpful to set time boundaries if you’re feeling burnt out. By setting a start and finish date for demanding projects or extra side gigs, you can power through knowing you won’t have to do it forever.
Stay Organized and Efficient
Alongside some clear goals, organizational skills are critical for successful money management. When you have multiple income streams, you have to stay on top of business expenses, receipts, and extra savings for things like self-employment taxes.
Fortunately, there is an endless selection of apps and technology that will do most of the heavy lifting. Budgeting apps and handy financial resources can also help you organize your money and set goals for spending and saving.
Remember, the goal is to manage your efforts so you can spend more time on things that reward you the most and automate tasks that don’t need a ton of attention.
Make Your Money Work For You
The most effortless income streams to manage are the ones that make money for you. Passive income strategies and various investments help set you up for long-term financial success. These investments are good for you in the long run because they help you transition out of “active” income strategies (like a full-time job) and free up your time.
There are tons of different investment strategies to help you build on the money you’re already earning. IRAs, stocks, bonds, and other investment options are available through most banks. But, of course, it’s always important to work with a financial adviser to help you discover the best option for you.
Manage Multiple Income Streams with DEXSTA
At DEXSTA, we make it easy for entrepreneurs, solopreneurs, and freelancers to manage all their income in one place. Our flexible share draft accounts have no limits on withdrawals and deposits so that you can keep your income liquid. And, our retirement account options like IRAs help you transition active income into passive, long-term earnings.
Check out our website for more information about our retirement and savings accounts.