This article will focus on the question of why multiple sources of income are needed and how they can be created.
One salary is not enough
If the main sources of income are only the salaries
of family members, then this is a rather unstable financial situation. This is especially true if another financial crisis is traced outside the window.
This issue is of no small importance if these sources of income are blocked due to the loss of a job, and the family needs to be fed, and there are other financial obligations (for example, a bank loan). In this case, the earnings option will also help in another place.
Therefore, in the thematic literature one can find an interpretation of such a concept as multiple sources of income. It is the creation of such that will contribute to the formation of real financial freedom. Especially if such sources of revenue generation are passive. In other words, this is the profit that a person receives, regardless of whether he works or rests.
Passive Income Sources
So, what is it and by what criteria can they be evaluated:
1. Opening your own business. This is a type of activity that does not require special participation in the functioning process, but it will require a lot of attention at the initial stage.
2. Income from rental property. This can be personal property both in Russia and abroad. Such sources of family income are fairly stable. At the first stage, it is advisable to have such a property abroad.
3. Copyrights are rather interesting sources of income, generated through various printed or audio, video materials, as well as personal inventions. The source of such earnings is the receipt of royalties.
4. Bank deposit, which is the most common source of additional income. It is formed by investing a certain amount of money in the bank at interest, which relate to the passive type of earnings.
What is the best way to generate revenue?
If today in the family there is only one type of income, then experts recommend adding others gradually.
Multiple Sources of Income: Creating It
For the successful implementation of their achievements and achievements in order to obtain
additional earnings in the future, it is necessary to draw up a certain algorithm of actions:
- the direction of activity in which it is planned to create a source of income is selected;
- a specific plan for its formation is drawn up;
- this plan is being implemented.
Other sources of income
In addition to passive, there are also such sources of income as:
- bonus for work;
- compensation and compensation for damage;
- pension;
- scholarship;
- child support.
Income and expenses
Provided that the family receives regular earnings, she has the opportunity to plan an appropriate level of expenses. However, often, by distributing spending on future monthly payments, you may find the need for additional payments. Thus, additional financial plans may appear.
It is a completely different matter when it comes to irregular earnings. In this case, it is more difficult to plan the sources of income and expenses, since the size of such an average family budget for the previous year and the moment regarding what is expected to be its minimum amount per month remains uncertain.
An important issue for the budget of any family is its planning in accordance with the minimum size of the source of income. And if surpluses appear, it will already be possible to direct them to cover additional needs.
Income Security
In this case, it is necessary to repeat once again about the need for the family to have, in addition to the main source of income, additional resources. For example, if a family member receives only social benefits, then there is a likelihood of changes in existing legislation that will result in him losing his status as a citizen that meets specific criteria for receiving such benefits.
The best option is that all able-bodied family members work. Moreover, they should have different places of work, so that in the event of any reorganization in the enterprise, the family does not remain without earnings. Family income is dependent on a large number of factors, but effective planning will enhance the effect of income growth with their distribution between sources.
Additional source of income
As an additional income, you can try to get a temporary job (if possible, combine it with the main one).
Each person has his own unique talents, which he realizes as a hobby. An example is needlework. So, knitted products can be sold with good income, they can be made to order.
Another example is the passion for gardening. Thanks to successful sales, you can also get additional income from your land in the fall.
Thus, such activities will bring pleasure, and, perhaps, small, but still earnings.
The expenditure of the family budget
Costs are an important component of any family budget planning. Indeed, the well-being of all its members depends on their optimization. Often in families there is an excess of expenses over income. This situation contributes to the taking of loans in banking institutions, which subsequently increase the expenditure side of the family budget, because the loan must be repaid on time, and even with interest.
The following should be cited as the main expense items:
- food, shelter, clothing and expenses related to health;
- parenting related to tuition and recreation.
Such needs are the same for everyone, but only differ in the level of earnings of family members. For some parents, raising children of preschool and primary school age is much cheaper than for those who, due to their income level, can provide their offspring with additional education elements (for example, foreign languages). The latter in the future will have a better quality of preparation and, accordingly, life than the parents themselves.
Depending on the size of the source of income, people plan their vacation. So, for some it will be expressed in work in the garden, and for others it is a trip to a foreign resort.
Costs, like revenues, can be constant and random. The first may include those that are repeated in a certain period (for example, once a month):
- utility bills;
- rent;
- repayment of loans;
- premium insurance;
- tuition payment;
- transportation costs.
Random expenses amount to:
- major and current repairs;
- purchase of equipment;
- expenses for examination and sickness.
There are also so-called “unwanted” expenses, consisting of:
- fines and penalties;
- various compensations (for example, repair of housing of water-filled neighbors);
- interest for unpaid obligations on time.
Summing up the material presented in this article, it should be noted that the preparation of the family budget is an integral part of any "cell of society." Only through effective planning can the family exist at a sufficient financial level.