Home PEx Business and Careers Banking and Finance
Discuss your bets and predictions on who will be the next Miss Universe. 👑

Mapanganib Ba Na May Isa Lamang Pinagkukunang Kita?

sushihunk26sushihunk26 PEx Rookie ⭐
edited April 2019 in Banking and Finance
Most people have one source of income. It is obviously coming from day jobs. Gone are the days of Mom and Dad working for 30 agonizing years until retirement. Noone is secured since any business owner can experience massive layoffs. The question is, if most of us are relying on one job and it dries up, how are you gonna pay the stupid bills?

Maybe it's time to change our mindsets about job security. It doesn't mean if you're good at what you do in a company, you're safe. Noone is safe especially when a company wants to be afloat. My principle is to have at least more than one source of income.   

Isn't it practical to have more than one source of income? 

 
«1

Comments

  • pokemonaddictpokemonaddict PEx Influencer ⭐⭐⭐
    edited February 2019
    It definitely is more practical to have one source of income and not depend on just one. Because if the company downsizes and decides to lay you off or if you lose your job for whatever reason, at least you have another source of income.

    atm, I only have one source of income but I still working on getting a second source.
  • piquanteyepiquanteye Member PEx Expert 🎖️
    It is a life and death situation actually. Some of my officemates at the callcenter  also worked as a ***** and it is so fulfilling. Try it..
  • piquanteyepiquanteye Member PEx Expert 🎖️
    edited February 2019
    Life or death actually. Some of my co workers before worked as a w.h..o..r..e... After shift. So beats me 2x job is the best.
  • ehleesyanehleesyan Para kanino ka bumabangon PEx Moderator
    Not... depends on your lifestyle.
    IF your current source of income is sufficient enough for you (or for your family) with savings being kept aside, then it's okay, if not, then you really are in danger.

    You must think of something that can provide you passive income... or much better din if may sideline (like I do)

    Bottomline is, one is not enough (sa income lang ha, hindi kasama lovelife :rofl:) - think of it as your Plan A, Plan B ... and so on.
  • markapinyamarkapinya PEx Rookie ⭐
    It's not the number of your income sources but the stability of your income source. I'd take one stable income source versus 10 income sources that coould disappear anytime :) My answer is NO. Having one income source is not dangerious by itself.
  • sushihunk26sushihunk26 PEx Rookie ⭐
    There is no such thing as stability if you only have one source of income. Businesses and jobs can go away even if they are stable at the moment. Have you heard of recession? layoffs can happen anytime and businesses can be affected as well. Mas risky kung isa lang pinangagalingan ng cash flow mo. 
  • markapinyamarkapinya PEx Rookie ⭐
    edited March 2019
    You have your own opinion but you cannot generalize that across all people. I have always got a single job at any one time (each one paid/pays good), and so do 99% of people I know. We manage quite fine, afford all the things we need and as stable as can be :)

    You cannot live life always paranoid, and expecting the worst will come. If you plan your career well, you don't need to kill yourself searching for multiple sources of income like a minimum wage earner. Preparing for downturns has got nothing to do with income sources, it has everything to do with wise financial managment. That's my opinion anyways :)
  • AgapitoAgapito PEx Influencer ⭐⭐⭐

    I have always got a single job at any one time (each one paid/pays good), and so do 99% of people I know. We manage quite fine, afford all the things we need and as stable as can be :)

    Yes, you can manage quite fine..... until you get into an accident. Some people end up with incapacitating injuries that leave them permanently disabled in a wheelchair, perhaps amputations, or life-long treatment that drains their money.

    Insurance does not always give back the lifestyle you once had.

    Fortunately, you can read threads such as this:
    https://www.pinoyexchange.com/discussion/276771/may-nakukulong-ba-talaga-sa-hindi-pagbabayad-ng-credit-card/p1




  • markapinyamarkapinya PEx Rookie ⭐
    edited March 2019
    Whether you have one source or multiple sources of income, you could get into an accident. So what makes a 'single source of income' person more prone to accidents? Sorry di ko ma-relate sa original topic :)
  • aeonfenriraeonfenrir PEx Rookie ⭐
    When one is just starting out, I think it's sufficient to have a single, stable source of income. From there, set up an emergency fund first, then get an insurance along the way.

    Pag medyo kampante ka na sa ipon mo, then it's probably a good time to invest. Invest in yourself in terms of being healthy in all aspects, learning a new skill, or securing your future house. Invest in additional sources of income such as franchises, businesses or properties. Take some risk sa stock market or any other financial instrument available...

    Ideally, what's important is to live within your means and your current circumstances. Still, everything's easier said than done. *sigh*  :s
  • AgapitoAgapito PEx Influencer ⭐⭐⭐
    Whether you have one source or multiple sources of income, you could get into an accident. So what makes a 'single source of income' person more prone to accidents? Sorry di ko ma-relate sa original topic :)
    It's not being "prone" to accidents. When you use the word "prone", you imply that you are susceptible, or you get into an accident repeatedly compared to the average person.

    Multiple sources of income, has nothing to do with being "prone". It simply means having a backup.

    If you get into a horrific accident just 1 time, maybe you end up paralyzed from the neck down - can you still go to your "stable" job for the paycheck?
  • sushihunk26sushihunk26 PEx Rookie ⭐
    Having more than one source of income can't totally eliminate risks, but it can at least mitigate them. If you know how to save money, it's even more helpful.  
  • markapinyamarkapinya PEx Rookie ⭐
    edited March 2019
    Agapito said:
    Whether you have one source or multiple sources of income, you could get into an accident. So what makes a 'single source of income' person more prone to accidents? Sorry di ko ma-relate sa original topic :)
    It's not being "prone" to accidents. When you use the word "prone", you imply that you are susceptible, or you get into an accident repeatedly compared to the average person.

    Multiple sources of income, has nothing to do with being "prone". It simply means having a backup.

    If you get into a horrific accident just 1 time, maybe you end up paralyzed from the neck down - can you still go to your "stable" job for the paycheck?
    What makes you think that a person with a single source of income, lives paycheck by paycheck?
    If you get paralyzed, the income that you actively earn, stops. That's it, no matter how many sources of income there are.
    If you are referring to a passive source of income, a person who works with a single source of income who manages his money well, has all the choices to allocate his assets if need be. He can have all the flexibility to allocate cash to his immediate care and move funds to fund his continuing care to, for example,  low risk annuities.
    That being said, kung nagpatayo ka ng apartments as investment and you are earning from that, then that is all good. You have multiple income.
    But someone can choose not to go down that track and decide instead to use that money to buy other investments for capital gains, instead of regular income. Ten years ago, kung me 10 million ka, you could have gone for that "multiple income source" and bought a condo that you are now renting out. You could have also used it to buy shares of JFC. If you did the latter, I doubt that you are in more danger now (with a single source of income) than with the former.
  • AgapitoAgapito PEx Influencer ⭐⭐⭐
    edited March 2019
    Well, yes of course, it's just arithmetic, if you want to expand the discussion on financial profile beyond the people who live paycheck to paycheck (which was what the original post of the thread starter was all about).

    If you add the element of "Savings" into the equation, a person can say he doesn't need any income anymore for the rest of his life and still live comfortably, like Manny Pacquiao or Jeff Bezos. As long as you stay within the arithmetic of savings and expenses.

    One particular example, is Michael Schumacher. His medical expenses are huge, and his family is burning through his cash savings. If he had no other source of income, arithmetic will burn his savings until he has no money left.

    Not everyone can stockpile enough cash like that as insurance, it's the reason why they take multiple sources of income.
  • markapinyamarkapinya PEx Rookie ⭐
    edited March 2019
    What has stockpiling cash got to do with multiple sources of income? Whether you earn from one or 10 sources of income, it's the amount that you earn and the way you manage your money that enables you to "stockpile cash" (and unless you're very near retirement age, I don't think you would be "stockpiling cash" rather than investing it).
    Sorry, you lost me with the Pacquiao, Bezos or Schumacher analogy.
    Active earnings/income disappears, no matter how many, if you are no longer active.
    Passive earnings come from investment. Choosing to prefer capital gains/compounding interest and switching to the 4% rule (or similar) after you are no longer actively earning is no more dangerous than sticking to a model with multiple income streams.
    So my answer is still NO, it is not dangerous to have a single source of income, majority of the people do.
  • AgapitoAgapito PEx Influencer ⭐⭐⭐
    Anyway, i don't want to drag this conversation any longer.
  • IronHandofJusticeIronHandofJustice Member PEx Guru 🎖️🎖️
    Most people have one source of income. It is obviously coming from day jobs. Gone are the days of Mom and Dad working for 30 agonizing years until retirement. Noone is secured since any business owner can experience massive layoffs. The question is, if most of us are relying on one job and it dries up, how are you gonna pay the stupid bills?

    Maybe it's time to change our mindsets about job security. It doesn't mean if you're good at what you do in a company, you're safe. Noone is safe especially when a company wants to be afloat. My principle is to have at least more than one source of income.   

    Isn't it practical to have more than one source of income? 

     
    Short answer: NO. Your financial stability is NOT directly proportional to the number of jobs you do. A person can work 3 jobs at a time and yet don't have sufficient emergency funds. On the contrary, a person may only work one job and can have a nice house and send his two kids to La Salle (referring to my cousin's husband).

    Longer Narrative: Maybe. This is the same principle by not putting all of your eggs in one basket.

    The job market is obviously more competitive and there are more SMEs and start-up businesses. This disruption may impact multinational companies' profits and talent pool. In effect, some people are being removed or replaced to make sure the company stays competitive. What most employees do is get another job to compensate for that uncertainty.

    Currently, I have two employers (FT and PT job) in my home-based job. Nasubukan ko na rin ang tatlo (2 FT and 1 PT job). Do I need to do it? No, because the main job pays good and it's a multinational company (offices in UK, NZ, Australia, US, and even Manila) so I am sure it's more stable than most local companies here sa atin. But in the financial aspect, I need a faster growth in my money to compensate those years where I felt I wasn't able to save much. Unfortunately, my main job let me go, so I was left with two jobs nalang after a couple of months (talk about timing). So in a way, I was "saved" by my third job which coincidentally is also a full-time role. 

    Now the question is what could have happened if I didn't take the third job and I lost my main job? Nothing. Really nothing. My part-time job which I work for 10 hrs/week earns me 20-25k/mo is more than enough for my 16-17k expenses monthly kasama na ang insurance premiums ko. I also have a year's worth of emergency fund, so I believe I have some contingency even if I lost all my income sources. 

    To sum this up, the biggest ripple it can do to your finances (or your life in general) is lesser discretionary funds and savings KUNG HANDA KA. It won't be very devastating (or dangerous using TS words). This is why, I believe those companies which conduct financial education seminars to their employees are BETTER than those which pay you the most, kasi they empower you to make better life decisions.

    Ayun lang. Maayung buntag. 😉😊

  • sushihunk26sushihunk26 PEx Rookie ⭐
    I'm still not a huge fan of relying on one source of income. It makes you vulnerable especially during market fluctuations. It doesn't matter whether you're a CEO, contract administrator, engineer or nurse. Anyone can lose a job at any given time. Most people believe in job security but I don't. If you keep on putting all your eggs in one basket, then somebody steals the basket, where does that leave you? 

    :)
  • MoonStruckMoonStruck PEx Influencer ⭐⭐⭐
    I don't think so, as long as you are always prepared for any eventuality, i.e. have saved enough money to spend while searching for a new job; health insurance; and plan B (business perhaps). 
  • blazing_angelblazing_angel PEx Influencer ⭐⭐⭐
    Daily job can eventually kill you anytime. While at work, work smarter outside of office hours. Find the better cash inflow where your money earn while you're sleeping. Multiple additional source of income is better!
Sign In or Register to comment.