This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
But people still do it, and it baffles me every single time.
If you want to make yourself as close to invincible as possible to economic shifts, one of the best ways to do this is to maintain more than one income source.
Two is great.
Three or more is better.
Even if you’re in a partnership of sorts and both bring one income to the table, you’re still risking it.
And here’s why…
Most couples with dual incomes rely on both incomes to maintain their standard of living. Though I wish it weren’t the case, it is rare for a couple to live off one income and invest all of the second income.
Maintaining one income is like betting all your life savings at 80 years old on a sick horse. You have a slim chance of winning and a significant chance of losing.
When you diversify your income, you make yourself immune to financial loss.
Here’s how you know you’re in a much better position than most people:
If you were to lose your job or primary income source, you wouldn’t have a financial worry in the world because you have multiple primary income sources.
Radical Thought
Your second income should be able to pay all of your bills as your primary income does; this will eliminate a lot of stress if you are to lose your primary income source.
I can’t remember the last time I was stressed out if I were to lose a job because I never invest all of my eggs into one basket, which also keeps me a little more relaxed on the job and can enhance the job performance of some.
Common Income Loss Examples
Example 1:
Many people experience losing an income source and don’t have an emergency fund; this puts significant financial strain on them.
They could easily avoid this situation if they maintained at least two income sources and built a hefty emergency fund.
Example 2:
There is still an issue for people with emergency funds who lose their only income source:
They’re on borrowed time; however much is in their emergency fund determines when they need to replace the lost income.
Less Common Income Loss Examples
Example 1:
If you lose one income source, have a fully stocked emergency fund, live off only one income, and maintain a stable second income, you will likely be unaffected by an income loss.
Period.
There are too many backups here. Not only do you have a fully stocked emergency fund, which usually equates to 1+ years of savings or investments, but you have a full-blown second primary source of income.
The sweet thing about having multiple income sources is you can easily live off one income source and invest the rest – if you do it right.
But it’s also easy not to live off one income.
The temptations only increase as your money increases. But the rewards also increase exponentially for those who keep their eye on the prize: financial freedom.
Recap
Maintain more than one primary source of income.
Maintain a fully stocked emergency fund.
Be more intentional about your purchases.
Live below your means.
Be less materialistic.
Live off one income.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.