SwCA Episode 113: Never have only one income stream! DIVERSIFY! (Baskets of Money)

SITE: http://www.courtneyanderson.com/swca-episode-113-financial-fierceness-series-never-have-only-one-income-stream-diversify-baskets-of-money.html SHOW NOTES: This episode is part of our FINANCIAL FIERCENESS!™ series! Our FINANCIAL FIERCENESS!™ series integrates our financial goals into our overall strategic development plan for surpassing our goals. This episode is, “Never have only one income stream! DIVERSIFY! (Baskets of Money)” Diversify: "to change (something) so that it has more different kinds of people or things"(http://www.merriam-webster.com/dictionary/diversify)Option 1) No Diversification/ Only 1 income stream:You have a full time job with a large company. You earn $3,700 USD gross per month ($44,400 USD annual salary). After taxes and other mandatory withholding, you have $2,600 USD per month (your net take home pay). Out of this amount you have to pay all of your necessary bills (utilities, etc.) and ideally you should save a percentage (15% or more is suggested). Then the “extra” leftover money is yours to use at your discretion for fun (entertainment, dining, etc.). You lose your job (layoffs, the firm goes out of business, etc.). Your income is now $0 USD per month. What do you do?Option 2) Diversification/ More than 1 income stream:You have a full time job with a large company. You earn $3,700 USD gross per month ($44,400 USD annual salary). After taxes and other mandatory withholding, you have $2,600 USD per month (your net take home pay). In addition, you have 5 rental properties (paid for with no mortgages). The total rental income is $6,000 USD per month. The necessary bills (property tax, insurance, etc.) total $1,850 per month. Your income (for your business or yourself depending on how you structure the ownership of the properties) is $4,150 per month. After taxes (which will vary depending on how you structure owning the properties), and other expenses (maintenance, repairs, etc.), the amount left is $2,500 USD per month. Your total income each month is $2,600 wages + $2,500 income from rental properties. You lose your job. Your income is now $2,500 per month.Which option do you prefer? © Courtney Anderson Enterprises LLC  CourtneyAnderson.com   [email protected]