Are you looking for ways to diversify your stream income? Or lately, do you find yourself struggling to maintain your current income level?
We get it, even high-paying professionals can definitely relate to the increasing demands of today’s job market. With technology ever-changing and more people being exposed to a global economy, it’s no wonder that many of us feel the need to explore other options outside of our 9-to-5 jobs.
“Job security” is a term that many came to know as a misnomer during the pandemic – even some doctors realized that their jobs weren’t secure.
Diversifying your income streams is a great way to protect yourself against job loss or other unforeseen circumstances. And while there’s no guarantee that any of us will have a job for life, having multiple streams of income can help increase your chances of weathering any financial storms that come your way.
Today, let’s talk about this more in-depth. What can you do to ensure income in the event of the loss of your 9 to 5 income?
What is Diversification?
Diversification is an investment strategy that involves spreading your money across a variety of different asset types in order to mitigate risk.
Just to mention, the COVID pandemic has left many people unemployed or underemployed. Even before the pandemic, job security was a misnomer. Jobs can be lost for a variety of reasons, including company restructurings, economic downturns, and technological changes.
So essentially, rather than investing all of your money into one stock, you may instead choose to invest in a variety of stocks, bonds, and mutual funds. By diversifying your portfolio, you are essentially hedging your bets and increasing your chances of achieving financial success.
The same principle can be applied to your income streams. Rather than relying on a single source of income (e.g., your 9-to-5 job), diversifying your income streams means having multiple sources of income that you can fall back on in case one stream dries up.
There are many different ways to diversify your income streams, but some of the most popular methods include starting a side hustle, investing in real estate, and investing in the stock market.
Let’s take a closer look at each of these options:
1. Try To Earn Side Hustle Income
Side hustles are a great way to generate extra income. They can be done in your spare time and often require little upfront investment. Although you may think this may sound impossible for professional doctors or for anyone in the medical field, the truth is you still can. There are many platforms that offer online medical consultations.
There are a number of different ways to make money from a side hustle, but some of the most popular include selling products or services online, providing freelance services, or renting out extra space in your home (e.g., through Airbnb).
As a medical professional, some of the best side hustles you can do are medical transcription, online medical consulting, becoming a freelance writer for health-related publications, and locum tenens.
Or have fun and get creative — start a podcast. If you’re a doctor looking to start a podcast, you can get started in 10 easy steps with my self-paced podcasting course.
2. Get Started in Real Estate
Investing in real estate is one of the most popular methods of diversifying your income streams. With so many different options available (e.g., rental properties, flipping houses, etc.), there’s definitely something for everyone.
And while investing in real estate can be a great way to generate passive income, it’s important to remember that it’s not without risk. Before making any decisions, be sure to do your research and consult with a financial advisor to ensure that investing in real estate is the right move for you.
Additionally, as a medical professional this can be a good option for you to start thinking about. You can purchase a duplex, live in one half, and then rent out the other half. This would give you the ability to have tenants help pay off your mortgage while also providing you with a place to live.
Another option would be to purchase a rental property that is near a hospital or medical center. This would provide you with a steady stream of income as well as the potential for appreciation if the property is well-maintained.
3. Consider Investing in the Stock Market
Investing in the stock market is another great way to diversify your income streams. When done correctly, it can provide you with a steady stream of passive income.
However, it’s important to remember that the stock market is a volatile place and your investments can go up or down at any time. Before investing, be sure to do your research and consult with a financial advisor to ensure that the stock market is the right move for you.
There are a number of different ways to invest in the stock market. For example, you can purchase individual stocks, invest in a mutual fund, or even start your own hedge fund. If you’ve listened to the Docs Outside the Box podcast, you’ll know that my favorite index fund is VTI.
Essentially, today’s inflation is a good reason for you to start considering how you can diversify your income streams. By having multiple sources of income, you’ll be better protected in the event that one stream dries up. So don’t wait — get started today.
There you have it, 3 ways to diversify your income. Each option has its own set of risks and rewards, so be sure to do your research before making any decisions.
No matter which method you choose, diversifying your income streams is a great way to protect yourself financially. By having multiple sources of income, you’ll be less likely to feel the effects of a downturn in the economy or unexpected job loss.
So what are you waiting for? Get started today and diversify your income streams!