How many income streams should you have?

There is no “one size fits all” advice when it comes to generating income
streams. How many sources of income you have should depend upon where
you are financially, and what your financial goals for the future are. But having
at least a few is a good start.

“You’ll catch more fish with multiple lines in the water,” says Greg McBride,
CFA, chief financial analyst at Bankrate. “In addition to the earned income
generated from your human capital, rental properties, income-producing
securities and business ventures are a great way to diversify your income
stream.”

Of course, you’ll want to make sure that putting in effort into a new passive
income stream isn’t causing you to lose focus on your other streams. So you
do want to balance your efforts and make sure you’re choosing the best
opportunities for your time.

There is no “one size fits all” advice when it comes to generating income streams.
How many sources of income you have should depend upon where you are
financially, and what your financial goals for the future are. But having at least a
few is a good start.

“You’ll catch more fish with multiple lines in the water,” says Greg McBride,
CFA, chief financial analyst at Bankrate. “In addition to the earned income
generated from your human capital, rental properties, income-producing
securities and business ventures are a great way to diversify your income
stream.”

Of course, you’ll want to make sure that putting in effort into a new passive
income stream isn’t causing you to lose focus on your other streams. So you do
want to balance your efforts and make sure you’re choosing the best
opportunities for your time.