Income Diversity: Where Does Your Money Come From?

One of the important considerations to make when you have a home business — or even when you are working a more traditional job — is income diversity. It is important to understand where your money is coming from, and to work on make sure that it is coming from more than one source. (As unemployment continues to show discouraging numbers, this is especially important for those with 9-5 jobs.)

In my work from home situation, I look for income diversity in a number of ways. While a great deal of money comes from my blogging, I am careful to make sure that no one client has an overwhelming amount of my work. I also try to diversify the kinds of things I write. In addition to blogs, I write for a science Web site as a reporter, provide non-blog Web content, and write for my local newspaper. Sometimes I even do some editing. And, just in case, I have accounts at Associated Content, eHow and Text Broker. This way, if I need to, I can write for immediate payment. I also have Google AdSense and arrangements for residual income on some of my blog posts.

But income diversity isn’t just about diversifying the types of business you do. It is also about finding other sources of income. You can do this by making money through sales on eBay, getting another job, investing in dividend paying stocks or participating in P2P lending. The income streams you have, the more secure you are. And if you can earn more through passive income options, that’s even better.