Freelancers commonly have more than one way of making money. Some people hold a couple of jobs simultaneously, while others promote multiple gigs that enable them to utilize different skills in order to earn money. And the holy grail of freelancing is passive income, which sees you earn from a source that requires little to no input in the long run. However you go about it, here are eight reasons why we think having multiple income streams is a smart move as a freelancer.
You have a backup if things go wrong
The most obvious reason why having multiple income streams is a smart move is to protect yourself if things go wrong. Putting your eggs all in one basket is a dangerous game, as you can’t be sure of income as a freelancer and are dependent on the whims of your clients. Broadening your horizons and earning from multiple sources covers several bases and means that you won’t necessarily be financially at risk if a client decides to cut you off for whatever reason.
You can build income more quickly
If you’re smart with your money, you can build income more quickly from multiple income streams. For instance, if you earn most of your income from the gig economy, investing a bulk of it in the stock market is an excellent income diversification strategy. You might then also combine this with a new gig or another investment, which provides you with several income streams that run simultaneously.
You can explore multiple industries and niches
Another great thing about earning money from several sources is that you can explore various industries and niches. For instance, if you’re a freelance wedding photographer, you might want to try your hand at photo editing or even a different form of photography to supplement your core earnings. As such, if the wedding bookings dry up, you can draw upon your other revenue streams and don’t need to worry about your finances. You might also find that you prefer a different type of photography, which you can then explore further.
It’s a great chance to pursue multiple passions and interests
Freelancing allows you to work on lots of different projects at the same time, enabling you to pursue multiple passions and interests. Instead of getting stuck in a rut and focusing on one revenue stream, you can diversify your working schedule to reflect your professional interests and passions. Ultimately, this will help you maintain high standards and ensure that you don’t become complacent.
You can test the water without committing
We love the fact that freelancing allows you to try new things and work on new projects. But equally, if you’ve never tried something, it’s important to get a flavour for what to expect before committing to it 100%. And dipping your toes in the water of a new gig or niche allows you to see whether it’s worth your time before going after it full-time. This is a strategy that freelancers commonly employ, particularly if they’re looking to broaden their income streams and earn from multiple sources simultaneously.
You’re less likely to get bored with your work
Lots of people quit their office jobs out of boredom or stagnation. And if you only work on one type of project as a freelancer, you might fall into the same trap and become bored with your current workload. While you need to be careful not to spread yourself too thin, enjoying multiple projects and earning from a number of sources will keep things interesting and will ensure you stay motivated and committed to achieving your freelancing goals.
You can work with different people
There’s no getting away from the fact that freelancing can sometimes get a little lonely, particularly if the bulk of your time is spent working on projects in front of your computer screen. So, multiplying your income streams and performing different tasks each day gives you the perfect opportunity to develop your network and increase your connections. Ultimately, this makes your life as a freelancer much more enjoyable!
You have more chance of finding what you’re meant to do in life!
Instead of sticking to what you know, trying something new as a freelancer presents you with the opportunity to discover your true calling in life. We’ve touched on this throughout, but diversifying your income streams and taking on different gigs will help you discover tasks that you enjoy and are passionate about. The end result is a more fulfilled life as a freelancer, which is something everyone can surely get on board with!
Final thoughts
We want to leave you with some sage advice: as a freelancer, don’t put all of your eggs in the same basket. It’s much better to have multiple income streams, so that you are financially protected if things don’t go according to plan.
