One of the golden rules of having a reliable income for life is to ensure that income is diversified. Sadly, too many people completely ignore this advice and work for one employer at a time, thus risking their family livelihood by relying on just one income source. If this is you, then please take note:

Limiting yourself to one source of income leaves you perpetually at risk.

Primary ways to diversify your income:
  • Don't just work for one employer. Take on extra part time or freelance work.
  • Generate extra income by developing a business you can run on weekends. Start simple and think of anything you can make or do for a small fee. When you can pass the work on to someone else (while still earning money) you have a real business running.
  • Build a passive income stream. Either invest and let your interest or capital gains be the passive income, or invest time in profitable passive income employment (eg. Work now and receive a small earning on that work for a lifetime). Be wary of who you work with. All investments are a risk, even if your risk is time spent working.
Money by at morey tota

In order to truly diversify your income, you also need to think laterally about your income sources.
  • If your primary income source was removed, would you still have enough money?
  • What currency are you earning? What if that currency is devalued?
  • What industries are your earnings coming from? Are they mostly from the one industry? What if that industry is unsustainable?
  • What is actually being sold to make you money? Is it mostly the same thing? What happens when people don't want it?
  • What effect will a recession have? If people can't afford to buy new widgets, will you still make money somewhere?
When you are completely certain that you will still have an income if you take out any one employer, business, market, currency then you have adequately diversified your income. Only then can you feel certain that your income is safe.

I hope this helps you towards financial security!