Sign up for our FREE Monthly Email Newsletter
In addition to keeping in the financial know, you may be interested in checking your credit score and report.
¹The credit scores provided under the offers described here use the Equifax Credit Score, which is a proprietary credit model developed by Equifax. The Equifax Credit Score and 3-Bureau scores are each based on the Equifax Credit Score model, but calculated using the information in your Equifax, Experian and TransUnion credit files. The Equifax Credit Score is intended for your own educational use. It is also commercially available to third parties along with numerous other credit scores and models in the marketplace. Please keep in mind third parties are likely to use a different score when evaluating your creditworthiness. Also, third parties will take into consideration items other than your credit score or information found in your credit file, such as your income.
²The Automatic Fraud Alert feature is made available to consumers by Equifax Information Services LLC and fulfilled on its behalf by Equifax Consumer Services LLC.
³Equifax Credit Report Control™ is only available while you have a current subscription to Equifax Complete Premier. Locking your credit file with Equifax Credit Report Control will prevent access to your Equifax credit file by certain third parties, such as credit grantors or other companies and agencies. Credit Report Control will not prevent access to your credit file at any other credit reporting agency, and will not prevent access to your Equifax credit file by companies like Equifax Personal Solutions which provide you with access to your credit report or credit score or monitor your credit file; Federal, state and local government agencies; companies reviewing your application for employment; companies that have a current account or relationship with you, and collection agencies acting on behalf of those whom you owe; for fraud detection and prevention purposes; and companies that wish to make pre-approved offers of credit or insurance to you. To opt out of such pre-approved offers, visit www.optoutprescreen.com/.
4We will require you to provide your payment information when you sign up and we will immediately charge your card $4.95. After that, we will charge the card $19.95 for each month you continue your subscription. You may cancel at any time; however, we do not provide partial month refunds.
Equifax® is a registered trademark and Equifax Complete™ Premier is a trademark of Equifax, Inc. © 2014, Equifax Inc., Atlanta, Georgia. All rights reserved.
Money Management: Ways to Diversify Your Income
A few decades ago, if you had a job at any given company, you usually had career security—and possibly a pension. That employment setup has been replaced by one in which companies replace workers without too much thought, and the average person is expected to have more than five jobs over the course of a lifetime.
In a world where you can be easily replaced, it’s vital that you develop household cash flow that isn’t dependent on a single source. Relying on a job for most of your household income can result in financial catastrophe if your hours are cut or you lose your job. Instead, to prepare for the future, it’s a good idea to diversify your household income.
Sources of income diversity
There are a variety of options when it comes to cultivating income diversity, which allows you to receive cash flow from more than one source. Here are some of the more popular options for diversifying your income sources:
Use your creativity and consider which combination of extra income ideas might work best for you. If you lose your primary job, these other sources of income might not replace the income from your job, but they can help alleviate some of the financial stress that results from the situation.
How to use other income streams
As you develop additional income streams, it’s important to consider how they will be used. Initially, it’s a wise choice to put all of the money you earn from additional income streams into your emergency fund. Live off the income from your regular job, and put the extra earnings into a high-yield account. Shoring up your financial situation should be a priority. A large emergency fund can be a real boon during times of financial distress.
Once you have used your additional income to build up an emergency fund with nine to 12 months’ worth of expenses, start thinking of other ways to use that extra money. Consider investing some of it for the future as well as using it as “fun money.”
Income diversity is a way to protect yourself and your family from the shifts in today’s job market. Develop diverse sources of income, and you will be able to take charge of your financial life instead of leaving it at the mercy of your employer. And, you never know: In time, your supplemental income may eventually replace the income from your day job.
Miranda Marquit is a freelance writer and professional blogger specializing in personal finance, family finance and business topics. She writes for several online and offline publications. Miranda is the co-author of Community 101: How to Grow an Online Community, and the writer behind PlantingMoneySeeds.com.
The information contained in this blog post is designed to generally educate and inform visitors to the Equifax Finance Blog. The blog posts do not give, and should not be assumed to provide, personalized tax, investment, real estate, legal, retirement, credit, personal financial, or other professional advice. Before making any financial decision, you should always consult with the appropriate professionals who can explain your options, rights, and legal responsibilities, and advise you on any tax, legal, credit, or business implications that may result from those decisions. The views and opinions expressed by the authors of blog posts are their own views and may not be the views or opinions of Equifax, Inc. and/or its affiliates.
Equifax maintains this interactive forum for education and information purposes in order to allow individuals to share their relevant knowledge and opinions with other members and visitors. We encourage you to participate in discussions about personal finance issues and other topics of interest to this community, but please read our commenting guidelines first. Equifax reserves the right to monitor postings to the forum and comments will be published at our discretion. Do you have questions or comments about your Equifax credit report or customer-service issues regarding an Equifax product? If so, please contact Equifax directly. All opinions and information expressed or shared in blog comments are solely those of the person submitting the comments, and don't necessarily represent the views of Equifax or its management.