When it comes to sources of income, the more the better. There are many, many advantages to having more than one source of income.

One of the biggest advantages of having multiple sources of income is diversification. In this sense, all of your eggs are not in one basket. If one "well" of income dries up, there are still going to be other things to help sustain you.

In investing, diversification is key because if one part of your portfolio goes down, that should be offset by a gain in another part of your portfolio, and you're less averse to risk, which is nice.

A good way of seeing the advantage of having more than one source of income is to imagine someone living on one source of income and basically living paycheck to paycheck. If they lose their job, they're in big trouble because their only source of income is gone. However, let's say that they had multiple sources of income and were better diversified... obviously losing an income source will hurt, but the blow will be enormously softened if you still have income coming in from other sources.

Another advantage is that it can potentially help you find more of your passions and help make them even more worthwhile. Many times, if you are working hard at something, you will be able to make money from it and it won't even seem like it is from work. This is why using your passions and interests to create another source of income is such a fulfilling thing in many different ways.

So, like investing, having more than one source of income is advantageous because is protects you more from risk. If you have one source of income and you lose it, you're probably going to be in a bit of trouble. If you have multiple sources of income and you lose one, it hurts, but you still have fallback options. This is the beauty and the advantage of having multiple streams of income.

Learn more about this author, Juan Leer.
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