This article has been generously contributed for your reading pleasure by Kevin at 20sMoney and the Neo-Survivalist blog.
As many of us recognize, something is wrong under the surface of our economy and our society. Whether it is the trillions in debt that are being papered over, or the corruption in D.C., or the shady Federal Reserve practices, things are not right for the astute American. As a young person, I’m very concerned for the future of our country and as such, for my personal future.
While I have a secure job with a small company, we are by no means immune to a struggling economy. Sales are down significantly, but we’re running lean so we’re still profitable. Depending on the coming years, however, this could easily change. If the economy really tanks into a major tailspin (which is very possible), my income could at least shrink, and at worst, disappear. Since I’ve taken an interest in “survivalism” during this recent economic crisis, part of the areas that I’ve been focusing on is my income.
How can I continue to earn money during a recession? During a major depression? During a societal collapse? These are important questions for all of us.
While most survivalists, I believe, focus on prepping for a situation where there is hardly any commerce, and thus, no employment or income, I believe we should also consider a more mild scenario where we still have a functioning society, but the economy is in utter shambles. It is this scenario that we should prepare for (in addition to the “end of the world” type scenarios) when considering what I like to call income survival.
Income survival entails working to both boost and diversify your income. For example, I work hard at my job in order to earn additional performance-based compensation. At the same time, I’m working to diversify my income by building up alternative income streams.
Income survival has two primary benefits. First, the additional income provides you with capital to boost your savings, get out of debt, purchase more supplies, whatever. Simply put, more income means more capital to be used how you see fit. Second, should the traditional economy struggle in the future, your additional income streams can help keep you afloat, earning you cash long after most people’s income has dried up. Sure, if the economy completely collapses, most if not all forms of income will eventually disappear, but you might last longer than others working only a typical job.
So, what can you do to boost and diversify your income? That depends on you and will most likely be dictated by the skills and other assets you possess. For me, I have a background in technology, an understanding of the internet, and a passion for writing. The natural result for me has been a series of blogs & websites that earn me a nice monthly income. Now, these sites don’t make me rich, but they do make an impact and have improved my financial situation. Your skills might be very different than mine. Don’t try and enter a field or industry where you have zero experience, skills or contacts in. Try and take what you already know and find ways to make money using this. For example, you might have a job as a technician for a company. Consider leveraging your skills and providing a service to people in your neighborhood or your friends and family. They might be able to save money by going directly to you for a need versus a company. Also, consider leveraging your network. Your contacts might turn into business partners, customers or just referrals.
I’m often amazed at how much emphasis is placed on diversification when it comes to investments by the financial community, yet if you were to use the term income diversification, most people would look at your funny. In many cases, your income is more important than your investments. Shouldn’t we consider diversifying our income as a form of financial defense and/or survival? While we probably all agree that we’re heading towards an ugly scenario, the reality is that we still have a functioning economy (somewhat), we still have bills to pay, and we still have areas (supplies, investments, other assets) that we can invest capital into in order to increase our security and future prospects. As such, I believe we should put some of our energy into additional income streams that provide us with both capital and diversification. Good luck to all.
AUTHOR BIO:
Kevin has an intense interest in economics, investing, technology, and the internet.
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