It is universally understood that having multiple streams of income can help us build our financial stability. What happens when we apply this approach to our thinking as well?
First, let’s see how generating multiple streams of income works from the financial perspective. Typically, we have one primary source of income known as a salary. Without anything more, that is our only means of bringing home a paycheck. If we net $50,000 per year after taxes and other deductions, we take home $50,000 per year and apply that sum to our expenses.
Now let’s assume that we want to make a little more money. We can choose to invest part of our salary into something like an investment fund, an investment vehicle, or a hard asset like real estate. This creates an additional stream of income (e.g., investment income) that stretches the money that you earn from your salary. For instance, if you net $50,000 per year after taxes and other deductions, and you choose to invest $10,000 into an index fund with an average return of 10% per year, you will gross $1,000 from your investment in addition to the net $50,000 salary that you make. This stands in contrast to putting that $10,000 towards a non-revenue generating good or service like a watch (barring any collectors that derive income from buying and selling watches).
Alternatively, you could start a side gig or take up a part-time job. For example, you might do freelance design on weekends or you might teach yoga classes on the side. Let’s say you make an additional net $15,000 per year after taxes and deductions, from your side gig or part-time job. This additional stream of income is in addition to your salary, so you would be netting $65,000 per year instead of just $50,000. Then, you can invest portions of both income streams to generate even more investment income. If you invested $10,000 from your primary salary and $5,000 from your side gig or part-time job into an index fund with an average return of 10% per year, you would gross $1,500 from investment income.
From a financial perspective, having more streams of income can help us build our financial stability. If we apply this approach to our thinking, we can see how this can help us build our intellectual and creative platform as well.
Let’s assume that you are an engineer. Because this is your full-time job, your thinking will be primarily based in engineering. What happens when you want to become a better and more effective engineer? You can generate additional streams of thinking! If you only focus on engineering, just like if you only rely on one source of income, you will only have that one asset. Nothing more. If you invest your mind into other streams of thinking, you can expand your intellect and your creativity to become better at your job. For instance, if you dive into science fiction, you can learn to view things from a different perspective — from a perspective of possibility rather than of constraint. You need to believe that you can build a rocket if you are to build a rocket, and that idea needs to come from somewhere outside of your office, especially if no one around you is building a rocket.
A low-investment method for adding to your streams of thinking is to read more — particularly in areas outside of your primary area of practice. It’s not a coincidence that the most successful people in the world (just think of the most successful people you know) are also some of the most well read. Other methods are to take new classes (there are a variety of great free and paid courses online), take up a new hobby, or travel (when safe!).
I am a firm believer that if you do what everyone else is doing, you cannot accomplish anything more. It follows, then, that by doing something different, you can set yourself apart from the pack. This often includes doing something different and doing something more. Investing your salary or starting a side gig sets you financially apart from your peers that don’t, but it also requires you to work harder. If you are willing to make that tradeoff, you will be farther along than your counterparts. The same is true for creating new streams of thinking.
By having multiple streams of income, your dependency on one paycheck decreases and you are better insulated from financial harm resulting from something like a layoff. By having multiple streams of thinking, your dependency on one way of thinking decreases and you are better insulated from professional harm resulting from something like a layoff. You can better pivot to a different position or industry than if you siloed yourself into one subject. This not only makes you better at your job, it also protects you from job insecurity as well. Thus, by increasing your streams of thinking in addition to your streams of income, you become better protected against and prepared for change.
Like generating multiple income streams, generating multiple streams of thinking can yield compounding effects. And like making a fine whiskey, these efforts require time and commitment.
Let’s sum things up:
- More revenue streams = increased financial stability and better protection from financial harm.
- More streams of thinking = increase job performance and better protection from professional harm.
Have fun. Experiment. And keep on exploring!
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Think well my friends,
Adam
This article is the third in a series of discussions focused on expanding your thinking. If you would like to learn more, feel free to connect with me on social media or subscribe to my “Weekend Thoughts” newsletter: https://www.atphilosophy.com/subscribe.
Adam advises businesses and individuals on business strategy, develops thought leadership content, and keynotes. As a business philosopher, he draws on his experiences in corporate law, sales, nonprofits, and philosophy to develop practical frameworks to shift business and individual mindsets and skillsets. He is the founder of At Philosophy and the president of the Asian Pacific American Bar Association Educational Fund. See www.adamtsao.com.
