Why you need multiple streams of income (2024)

"Sow your seed in the morning, and at evening let your hands not be idle, for you do not know which will succeed, whether this or that, or whether both will do equally well." - Ecclesiastes 11:6 NIV

This morning I received a mobile money message showing a deposit of cash into my account from someone. This was a welcome relief given that I was feeling a bit broke after paying hefty school fees for my daughters. I did a quick happy dance in my office and if anyone saw me they would think I was losing it. At that moment I was grateful that I was receiving money from a source other than my salary. This has not always been the case. There was a time in my career when I relied solely on my salary for survival. Needless to say, any delays in the payment of salaries would raise my blood pressure!

This payment was for some consulting work I had done for a long-time friend. He reached out and needed some financial advice on a large transaction. So I did the work, billed, and got paid. I did this work over the weekends and after working hours. What essentially happened is that I leveraged my knowledge, skills, and experience to serve someone else outside of official working hours.

This path to earning additional income is open to all career people. However, it requires a mindset change. First, you have to believe that you can earn money from many sources. This is not obvious! We have been conditioned by society to believe that money only comes from a job. This is not true. Money comes from many sources and it is possible to earn multiple streams of income.

Second, you have to see yourself and your career as a business. If you are employed it means your employer is your biggest and most important client. So you give them your best. However, a good business doesn't survive on one customer. You need other customers even though they are much smaller than your employer. Viewed this way, your career takes on a new direction and you begin figuring out ways to acquire more clients.

Third is your develop a product or service. In other words, you package your knowledge, skills, and experiences into something that you can sell to other people. So in my case, I am using The Money Engineer as a vehicle through which I showcase my service offering to prospective clients. Finally, you actually deliver a quality service in a timely manner to your clients.

Developing multiple streams is possible for everyone. This point was impressed upon me in a book called "You Were Born Rich" by Bob Proctor. The path to building multiple income starts by focusing on one stream first which is typically your job. You then work hard on your job, earn above-average incomes and maintain a simple lifestyle. You then take the savings from this job and buy assets that generate additional income. For instance, I have bought shares in MTN and Airtel and I earn a dividend every quarter. I have unit trust savings and I am paid interest every day. I have invested in government bonds and I am paid interest every six months. I own a consulting business and my clients pay me whenever I deliver a service. I have published a book and earn some little money whenever I sell a book and other financial literacy kits. I also own a condiment manufacturing business and earn some profits every year. I also have savings with NSSF and other Provident Funds which pay me passive income every year. I also belong to a couple of SACCOs and I am paid dividends occasionally. I do some farming and get some cash from selling agricultural produce. So I am earning all this cash while still fully employed!

Having multiple streams of income reduces financial stress and anxiety. You no longer go to work out of fear of being fired. You go to work because you actually believe you are making a difference to your organization and your country. Having multiple income streams elevates you above the strife for survival which plagues the majority of people. At this level, you aspire for bigger things and are more concerned about making a difference in society and living the best life you can.

So I hope I have made the case to acquire multiple streams of income. This is one of the most life-changing things you can pursue and it will totally transform your life.