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.
- 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?
I hope this helps you towards financial security!