Hello Grasshoppa,
Based on my previous post on Financial Lessons Takeaway During The Covid-19 Pandemic Situation, I would like to share more on the importance of having additional sources of income. In the current Covid-19 situation, many of us are feeling the impact & some are even facing unemployment. Many businesses are struggling & some are closed for good. It is a lesson to learn for all of us & there is no such thing as a stable income in the current situation. Everyone is impacted in one way or another.
Personally, I am feeling the impact on my personal business & a minor impact on my 9-5 job. I am lucky to be part of the essential business where my 9-5 job is still running during the MCO. My gym on the other hand, it has been closed a few days before the MCO started & we are waiting for the announcement by the government on the opening date. As for my new e-commerce business, the order is slower but it is expected due to low demand during this situation.
Why Is It Important To Have Multiple Sources Of Income?
Let’s talk about the overall scenario when things used to be normal prior to the Covid-19 situation. Additional income can help to fund for an early retirement if you are into FIRE movement. Or else, it can also fund you to have a better lifestyle or holiday. Additional source of income may not come directly from a part time job or part time business that you are running. It can also come from the dividend that you earn from your investments.
Assuming that you are earning RM5000 from your current employment & you have a part time business that pays you additional RM1000. That is RM6000 per month. If you are investing in stocks & they are paying you dividend on a quarterly or yearly basis, you may have additional RM500-RM1000 per year (estimated). That means your annual income may reach around RM73,000 instead of RM60,000 if you have an additional source of income.
I remember back in the days when I used to attend many “motivational” talks by Gurus or MLM talks where they were condemning 9-5 job. I used to believe in it & I was on full swing for 6 months trying to pave my way in the MLM platform but I failed badly. I was just 19 at that time. Come to think of it, is working a 9-5 job really that bad? I don’t think so. My 9-5 job has given me a good and stable source of income & has enabled me to lead a comfortable lifestyle. Until my businesses & investments are able to replace my 9-5 job income, I will definitely be sticking to my 9-5 job.
The question is, how many people get rich by working for people? Perhaps if you are the high level manager or part of the management team, you may be the richer ones. Those are the smaller percentage of individuals that have worked hard & paved their way to the top. Trust me, most of them are also using their employment income to build a business or invest their income. My point is, it is good to have a stable income while you are working part time or building a part time business. Investment is also an option to obtain additional income or planning for your retirement.
Conclusion :
It is always easier said than done & it is easier to plan than execute. The current situation have taught us many lessons & personally, I think the best lesson than I learned from this scenario is nobody is safe. We are all prone to be affected by this situation in terms of our job & financially. Now is the time for us to stop dwelling on the past & start planning ahead. Plan your financial now and start investing in yourself by taking up some courses available online.
If you are looking to make additional income, you can refer to my previous post on 10 Easy Ways To Make Extra Money In Malaysia.
OSS!
