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The general way people fight inflation is by cutting back on what they buy. However, you need to add another income stream.
We’re all seeing inflation going up like crazy. Canada is hitting a 7% inflation hike this year, and that’s not even the peak. It’s sent prices skyrocketing, and there are a lot of families struggling.
The way to tackle rising costs in the past is to cut back. You’ll reduce the amount you eat out or you’ll find ways to cut back on your groceries. Maybe you have your air-con set at around 25 degrees like I do just to save money on the hydro bills.
One of the biggest problems is you’ll end up running out of ways to cut back. There’s only so much that you can do without feeling like you’re in a prison just trying to survive. You need to add money to your pocket, and that means you need to add another income stream.
You could ask your boss for a raise, but everyone in your workplace is doing that. Chances are you’re not going to get the raise you need, so you need to do something else instead. And what do you do if you don’t have a boss to ask?
5 reasons to add another income stream
Instead of asking for a raise, look for other ways to make money. When you add another income stream*, you avoid a few problems. Here’s why to do it right now.
- You could replace your income and more: When you add another income stream, you could find that it replaces the current income you make. This is great if you have a full-time job that you want to quit. Work your way to replacing that income, quit the job, and start up another income stream to add more money to your pot.
- Some income streams are residual: Wouldn’t it be nice to work for five years and then retire? That is possible with some income streams. There are a lot of passive residual income streams out there if you’re willing to look. It’s one of the reasons I’ve added investments to my income streams.
- You can only cut back so much: Cutting back isn’t going to work out in the long run. These prices are going to keep going up and your dollar doesn’t stretch as much. Eventually, you’ll find you have nothing left to cut out.
- You have a little more control: When it comes to your job, you don’t have much of a say. With another income stream, you get more control. You say the prices you set, you determine what you’re willing to offer, and you control how things are delivered. Don’t you want to be your own boss?
- You show your kids how to do it: Inflation is just going to get worse. The cost of living is going to be ridiculous in the future, but we all know the wages aren’t going to reflect that. It’s going to take something big to bring some sort of change. Instead of relying on that, why not get your children ready for it? Show them how to add more income streams so they don’t have to face too many money issues.
What are you struggling with as a work-at-home mom? What are you doing to combat inflation? Share in the comments below.
If you want to talk about adding insurance or investments as another income stream, feel free to get in touch.