Recently, I sat in a room with around 50 people to hear a speaker. This speaker is probably someone you’ve heard of. Their main job has nothing to do with politics, but they are usually seen as a politically-tinged figure.
(I’m not mentioning their name to not distract from the point I want to make. If you know me in real life, I’ll happily say who this is.)
This person faced “cancellation” for speaking their opinion once their local politics started interfering with their ability to do their job.
Someone in the audience is facing a similar situation in their job, and asked for the speaker’s advice.
Their response: “I had three incomes when they came to cancel me. I lost two. I didn’t lose the third.”
They went on to say that support of friends and family meant a lot, but in practical terms, not being totally wiped out financially allowed them to stand on their own opinion much more firmly.
The Social Value of Multiple Income Streams
Obviously increasing income is good, especially if you can keep expenses flat, since it creates an exponential growth curve in your savings rate.
For the reader here, you probably want more out of life than money. Having a lot of money enables this, certainly, which is why you’re here. But one reality is once you’re making real money, you start having to think about the circumstances around your money.
Any business owner knows about the legal risks of managing employees and customers. I know a small business owner who makes a small but comfortable living with 3–4 employees. It’s not some massive corporate enterprise. There’s not even an HR. And yet this owner was wrapped up in one legal fiasco for years which he’s finally free from (it had to do with a former partner, so don’t read the HR thing as a red flag).
Even I, in the freelancing I’ve done, have almost walked into a few legal pitfalls. There was one situation where I was technically owed money, but I thought the headache and cost of getting it would not be worth it because it was so small.
The Power of Negotiating Leverage
J. Paul Getty said “If you owe the bank $100 that’s your problem. If you owe the bank $100 million, that’s the bank’s problem.”
If you have one dominant client, you are effectively their employee. If you have multiple, then you actually have clients.
If you have one job offer, then you have very limited leverage. If you have multiple job offers, or a job you don’t have to leave, then you have tangible leverage again.
You don’t even have to state your leverage for it to work. Your behavior will naturally reflect the fact that you don’t have to do anything.
Simple Ways to Get Multiple Incomes
- Real Estate: the most obvious and time-tested. It’s growing on me simply because of the loans available compared to other assets, which increases cash-on-cash returns like none other.
- Dividend stocks: if you value mobility, this is another classic (but boomer-y, so not as in fashion these days) way to get consistent income. I do not recommend it as a way to grow your ultimate stockpile of wealth as I’m still a Bitcoin bug, but if cash is your priority, don’t overlook. Also, unlike real estate, you can marginally add more to your position over time for a smoother exponential growth line.
- Additional Jobs: even if you’re a business owner with employees, if you’re in a down season (strong recurring, but fewer new clients) then you can avoid paying yourself and put the cash back into your business as a safety maneuver. And if things pick up again, you simply have extra savings
If you have a rare skillset, side freelance income is a way to get started. If you’ve been a freelancer, maybe you can put yourself “on call” for former clients for a small monthly fee. Or you have a laundromat or storage unit business, and you want to add in some vending machines on property to up the value that’s already there.
In real life, the best way to get additional income is going to be extremely specific to your situation.
