There are many things that people will disagree on. Is there enough or to much regulation, does government do enough or not enough, should interest rates be higher or lower. What would the world be like if everyone agreed on everything, it would be pretty boring. There would be something missing, something that just wouldn’t make things seem right, although they would because we would all agree that they would, if that is what was agreed.
Jokes and such aside, i do believe that there is one thing that a very large number of people do agree about and that is not keeping all your eggs (investments or streams of income) in one basket. That is unless you want complete safety and invest only cash in your bank account and nothing more, and only want to work for a company that has you fixed in one place earning a fixed amount of money.
If you ever want to even move close to being independent or working or want it to be a choice you need to look to moving away from the a single basket environment, into a multi basket environment. An environment where you have multiple streams of income, and multiple types of investments, which allows you to be flexible in choosing when, where and how you work, as well as how you generate your income.
The first step for the people in a single basket world, living from week to week is to start saving some of that money. Saving money and putting it in a decent online saving account will begin building you a second stream of income albeit small, it is another stream none the less. Which is the first key to multiple streams of income, no stream is to small, as long as the time required to maintain it is worth the income generated. So for saving if you setup the saving account and set an automatic transfer to the account you are effectively generating free income. Every $1,000 at 4% will give you just $4 per year. Small yes but insignificant no as it is your first step.
After talking the first step, you need to look at generating another small stream of income, there are literally hundreds of options and it all depends really on what your position is, to either invest money or time in building another stream. If you have money you may want to invest in property, or shares, or something similar, this can take money that you are making a small interest rate in the bank and make a more substantial gain through rental payments, or maybe dividends from shares.
If you are more interested in investing your time, because the whole point you are looking at generating more income is because you don’t have enough money as it is. Again where you invest your time is going depend greatly on where you strength’s lay. If you are cluey on websites and such then take a look at making some money from setting up one or more website. However if you are not that into the internet then a weekend stall at the markets selling crafts, or plants, may be something that is of more interest to you.
In the initial stages of creating multiple streams of income or investments, to move towards having more then one basket, you will find that going with something that you have a passion for and something that really interest you is a much better idea, then trying to force yourself into something that you really do not find interesting at all.
For the most part these first few streams that you can add, may become a base for many other sources, for example if you were to have a market stall on Sundays that sells plants, you may find that a lot of people ask for advice about different plants. So from knowing people want advice you could create a blog on the internet that discusses some of the more common questions that you get. You can tell everyone that buys plants that the website is there, you place some advertisements on the site and generate another stream of income. Then maybe later on your decide to put all the good and important points together into an ebook or actual book that you can sell as a separate product, and another stream of income is born.
In reality diversifying your income and getting away from the all your eggs in one basket situation is not a major issue. It is changing your mindset to allow yourself to use more baskets that is the hardest part for many people.