Most of the rich people that I know or have met have 2-3-4-5 sources of income. Even if they are full time into business, they do find some manager who will ensure that they create a few more sources of income.

The most common assets that they have created over a long period of time is – equity shares, mutual funds, rental properties, money lending opportunities, investing in friend’s business (sexy word is private equity), etc.

This helps them reduce dependence on the main business income. One person, aged 56 years, buys one property every year from his rental income! I reviewed his portfolio and suggested some geographic diversification. He had all his properties in 2-3 suburbs of Mumbai. yes he has a huge property portfolio, but now his rentals are going into mutual funds. Over the past few years he has created a 9 digit mutual fund portfolio (growth option) and this is helping him pare down his real estate assets. Why is he paring down? Well, both his daughters have gone off to USA and there is nobody to look after his huge RE portfolio!!

So the main business is run in order to create a few more sources of income. If you are well qualified and have a regular job with increasing income you might feel very secure and smug. However given the quality of jobs available and the fact that there are lesser jobs at the top, it is nice to build a secondary source of income. While your kids are young is actually the a good time to take baby steps and begin slowly building something on the side. Try putting away about no more than five to 10 hours a week here, devoting yourself to something you are passionate about and that can eventually be monetized. For many young women tuition especially in a subject of their choice is a lucrative option. I have seen women build a nice secondary source with baking, baking classes, etc. too and build a secondary source. One lady does an SIP of Rs. 75000 (age 36) – and this comes from a business that she has built from scratch, and her kids are in primary school. It is just an attitude  about investing in yourself and your future now so that you can reap the dividends down the road. This woman was pushed to doing this by her husband and father in law from her age of 22 when she came as a new bride! Her parents had not encouraged her to take up a professional degree. In fact they would have preferred her taking up a job in a PSU bank as a clerk, or best a manager. This girl is now financially independent – in a house where there is so much cash that her cash does not matter, but it has given her an amazing sense of ‘business’.

If you are very rich such side hustles are just a kick, but if you are in the middle class, remember that those those income streams will eventually be big enough to allow you to quit your full-time job and hire individuals to help you with your business. The cash flow from the business will help you invest and you may employ people to manage your investments!! This will free you up to enjoy the dividends: a vacation home that becomes a hub for your adult children, financial independence, being able to pay (fully or partially) so that you don’t become a burden on your children, a retirement free from financial worries, and money to help your adult children buy their own homes.

Its more an attitude, rather than how much of cash you have. So whatever be your MAIN source of income, save hard, invest smartly, do a side hustle, create 2nd, 3rd, 4th streams of cash flow, and be ready for disruptions in your main line of income.

Immaterial of your qualifications, job content, etc. having just one source of income is scary. Real scary.