Estimated read time: 6 mins, 40 secs
Money makes the world go ‘round. There’s virtually no way to live in the modern world without it. But how can you get ahead in life and set yourself up for a financially stable future when you barely have enough funds to make it from one payday to another? The answer isn’t winning the lottery or marrying into a wealthy family—it’s earning additional income.
Whether you treat it as a hobby or a second job, adding an additional stream of revenue to your household can help open the doors to greater financial security. If you’ve never considered it before, the following reasons will make you realize how much you’re missing out on by not taking advantage of LIMU’s unique and flexible business opportunity.
1. PAY OFF DEBT
Whether it’s credit cards, student loans, hospital bills or mortgage payments, everyone has some type of debt they’re working to pay down and it causes more stress and strife in families than any other factor. In fact, 85 percent of people worry more about their personal finances than their own health. Adding an additional income stream could make it easier to reduce your debt by giving you the flexibility to make larger, more significant payments in a shorter amount of time.
2. PREPARE FOR EMERGENCIES
3 out of 4 families don’t have enough money to make it 30 days after losing a job.
Life is unpredictable—literally anything can happen. That’s why you have to be prepared for the unexpected. There are numerous ways to calculate it, but it’s generally recommended that a person puts a minimum of two weeks’ pay towards their emergency fund. Don’t get stuck in a situation that forces you to sell off your investments or tap into your 401k just to be able to survive. An extra stream of income could help keep your emergency fund (a six-month fund is recommended by many financial advisors) at a comfortable amount or allow you to create a new emergency fund if you don’t already have one.
3. SAVE FOR COLLEGE
According to College Board, the average private nonprofit college charged $46,950 for tuition, fees and room and board in the 2017-2018 academic year.
With most companies only offering an average of $50,000 a year for recent grads, it’s easy to see how millennials are struggling to pay off their debt. Just do the math. Instead of leaving your children with no option other than student loans, start saving now by working to create a second stream of income. Remember, they’ll be taking care of you one day, so set them up for a successful future and help them get the most out of their lives.
4. SAVE FOR RETIREMENT
Just like you may be preparing for your children’s education, it’s important to put money aside for yourself, too. Having extra income means the ability to secure your own future by saving for your retirement. According to a 2018 study by Northwestern Mutual, 21 percent of Americans have no retirement savings and an additional 10 percent have less than $5,000 in savings. A third of Baby Boomers currently in, or approaching, retirement age have between nothing and $25,000 set aside. Even if you’re in tip-top shape, you probably won’t want to spend 40 or more hours a week working after the age of 65, yet this is the reality for many. If you want to be able to kick back and relax in your later years, you have to put in the work now by putting money into a 401k, IRA or other financial instruments. Some companies will match what you contribute, but overall, it’s up to you to grow your retirement fund. What better way to do that than by bringing in some extra cash every month?
5. TAKE MORE TRIPS
Whether you’ve already had the opportunity to travel or you’ve never really been on a bucket list vacation before, there’s probably more than a few places you’d like to visit right now if you could. It’s tough to put money aside for a family vacation when you’re just scraping by to pay the bills. Think of what a little extra income could do to help make this dream a reality. Even making just an extra $100 a week over the next year could allow you to finally take that epic trip you’ve been dreaming of.
6. USE MONEY TO MAKE MONEY
Living paycheck to paycheck and counting every dollar you spend means not having flexibility with extra money to spare. Wouldn’t it be nice to invest a few hundred dollars each month into a fund that could potentially build your wealth over time? Although it can be risky, putting your money into stocks, bonds, real estate and other types of investments is important if you’re serious about maximizing your finances—and an extra stream of income could give you the freedom to do just that.
7. SOCIAL SECURITY ISN’T SECURE
A 65-year old couple retiring this year will need $280,000 to cover just health care and medical expenses throughout retirement, Fidelity reported earlier this year.
According to ABC News, the nation’s Social Security program is running out of money with benefits on track to be reduced by around 2035 unless Congress steps in. The government also concluded that Medicare’s hospital insurance trust fund will run out of money in 2026. If you were counting on these programs to fully cover your future medical expenses after the age of 65, think again. Don’t wait until it’s too late—earn the extra income now that you’ll be needing later. Build your side business during your lunch hour to make money!
8. SPEND TIME MAKING MONEY, NOT WASTING IT
People who spend 60 hours a week working multiple jobs don’t have time to throw their money away mindlessly by shopping or eating out—they’re literally too busy making it that they have no time to waste it. It’s actually pretty genius if you think about it. By keeping yourself focused on growing your income, you won’t have much free time to squander away your earnings. For instance, if you go out to eat lunch every workday and spend, on average, $10 per meal, it comes out to $2,500 a year, CNBC’s Jonathan Blumberg reports.
9. ELIMINATE A CAR PAYMENT
After your mortgage or rent, your monthly car payment is the second biggest bill for most people. With the average monthly car payment soaring past the $500 mark, it’s no wonder why people rely on their credit cards. The Uber effect is real and not only are people opting to use ride-sharing and bike-sharing services (and even public transportation) more and more, they’re also turning their own cars into taxis, shuttling people around for a few extra bucks on the side. Social network marketing like LIMU have easy ways for you to actually earn your own company car (a BMW!) with $600 a month going toward your lease or purchase.
10. STAY HOME WITH YOUR KIDS
Among married couples with children, 61 percent had both parents employed in 2017.
Most moms dream of staying home and raising their children, especially when they’re young, but because of the need for additional income, that’s just not a reality for most families. The U.S. Department of Labor reported in 2017 that 70 percent of mothers with children under 18 participate in the labor force, with over 75 percent employed full-time. What’s even more shocking is that mothers are the primary or sole earners for 40 percent of households with children under 18, compared with 11 percent in 1960. A mobile-first, home-based business allows moms the flexibility of working on their time from anywhere. All you need is a smartphone to create an extra stream of income!