I know what you’re thinking … this is a blog about and for engineers, not a financial blog. So why are you writing about money? That’s a fair question. First, I think everyone needs multiple streams of income. And despite engineers having higher than average salaries, I think engineers especially need several sources of income and here’s why:
Bet On Yourself
Getting ready to mash my Hop Bomb with 21 lbs of grain.
Engineers are thinkers, creators, makers. You’ve had an idea for a product or a business, right? How about that app that you know would sell. Or how about that night you college classmate discussed starting your on firm Or maybe you’ve got a hobby that you dream of turning into a full time gig. How about turning your homebrew hobby into a fully functioning brewery? I know I think that every time I brew.
That’s a big gamble, though. Stepping away from your job and betting everything on yourself. Multiple streams of income will reduce the risks and reduce your stress.
Don’t Compromise Your Values
Company cultures change. One day you’re riding high because your company is an ideal workplace. You believe in the values espoused by your employer and you feel great about working there. But the next day, a cultural shift occurs. Maybe your company was purchased by another organization (see next reason, too) or maybe there was a change in corporate strategy.
Or maybe the change was so slow that one day you finally realized that the company you used to work for and the company you work for now are two very different entities.
In either case, you’re left asking yourself, “Is this who I really want to work for?”
Multiple streams of income give you the freedom to take a different job. Maybe it’s the time off to hunt for the job. Or maybe it’s the ability to accept a lower salary at an organization that mirrors your own beliefs.
Downsizing & Layoffs
Picture this: the CEO of your 100 employee firm calls an impromptu all-hands meeting at 11:00 am. It’s a beautiful day so everyone heads out to the outdoor courtyard where nearly all of the company meetings are held. Once you’re outside, a sheriff’s deputy closes and locks the door. Suddenly you notice a handful of deputies. The CEO makes the grim announcement of Chapter 7 bankruptcy (full liquidation) and that these officers are here to escort us back in to get our personal belongings.
That happened to me in 2001.
A few months prior, my boss was talking about a promotion and a raise. Instead, my salary went to zero because I had no other sources of income besides a small savings account and a few stocks.
Having multiple streams of income will help you weather the storm of a forced job change.
Build Wealth
Even if you never have a hiccup in your career, I don’t think anyone ever said, “I have too much money.” Build your long-term wealth can make retirement earlier or at least more enjoyable.
And, if nothing else, your kids will love you for it.
The Final Takeaway
If you don’t already know by now, I am a huge fan of iterative approaches to problem-solving. Having multiple streams of income is no different. Find one way today to add a source of income. Put a $1000 into a CD and let it ride. Sure, it’s only 2.5% (I just checked my bank’s website,) but that’s only $2 per month. But that’s a start. You’ll find other sources.
Cliff and I are both big believers in this. I wouldn’t be surprised it one or the other of us blogged about this again sometime soon.
Photo by Thought Catalog on Unsplash