The Importance of Having Additional Income

If you already have a regular job with a nominal salary that is sufficient to meet your needs and save money, chances are you are not thinking about having extra income. It’s different if you have a mediocre income but still have many basic needs that must be met. In fact, having additional income is also important even if you already have a steady income. Here is a further review of how extra income can benefit you more.

Additional Income

The additional income referred to here is a source of income that you get from doing other work besides the main job. This side job can be a business that you do individually or a business that you run with several colleagues.

Additional income can be a lifesaver if you can no longer rely on your main income. For example, like the conditions that have occurred recently, many companies are forced to make efficiencies by laying off several employees and even carrying out Termination of Employment (PHK). Having extra income can make you prepare for the worst.

Expanding Friends Network

When you have an additional source of income, this means that you have to do other work besides your main job. In other words, your network of friends will be wider. You will not only be connected with co-workers, but also people who are connected because of this side job.

A wide network of friends will provide even more benefits, especially if you can join a community with various backgrounds. Having extensive connections can be an asset that can be useful at any time.

Hone Hobby

Many people who have extra income started by making their own hobby an extra money maker. By turning your hobby into something that can make you money, it means that you also have to continue to hone your hobby in that field. Even if you feel like an expert, keep learning and keep improving your own skills to produce the best product or service.

If one business that comes from your hobby is successful and stable, you can try to develop other hobbies for you to make other additional income. But if you have many types of businesses to take care of, don’t forget to improve your business management skills as well.

Pension Fund Sources

The importance of having additional income that is no less important is to get a source of retirement funds. Even if you’re still at a productive age, there’s nothing wrong with setting up a retirement fund from now on.

If your main income is able to meet the main needs, then this additional income can fully allocate as a special fund. You can split it like this; 25% for the emergency fund, while the remaining 75% is allocate as a pension fund. But make sure you separate your retirement funds from your consumption accounts.

It is important to separate the consumption account and the special fund account to prevent the use of the allocated funds. It also helps you to monitor spending habits every month. With a separate account, you can clearly evaluate expenses for each month’s needs, and how disciplined you are in allocating your income to a special fund account.

If you have started to see the importance of having extra income, plan the steps carefully. You have to share your time in a balanced way so that your extra income does not interfere with your main income. Also check whether you need money to start the business.