All of Jims money came from one income source, then he got laid off. What happened to his income source? Gone. In my opinion, generating/earning your money from only one income source is risky. If your only income source is from a job that is paid by someone else, what happens when that source is gone, you’ve lost your entire income source.

Job Market, Stock Market
When we buy stocks, do we put all of our money into only one stock? No, we diversify and put our money into multiple stocks in order to lower the risk. We can apply this principle to our current income.

1.What if we could work two part time jobs instead of one full time, wouldn’t that cut our income risk in half? Many would argue that this would be nearly impossible to achieve and we would lose out on benefits and lose out on health care.
2.Do what you do at work at home. Are you a car mechanic? Why not offer additional services from your home. There are plenty of firms that will pay you for writing about different fields. As a freelance writer, I write about topics ranging from the environment to household gadgets.
3.Do you generate internet income from adsense alone? Diversify and run more than just one ad program on your website. What happens if you get banned from adsense? It is rather risky to earn your entire site’s income from only adsense. I’ve heard stories of people getting banned from adsense and going from hundreds of dollars per day to nothing in an instant.

Time is an issue
Why can’t we develop multiple income sources? We just don’t have the time to do it. We work 9 to 5 and the time after work is for relaxing. My advice? Try to earn your income for more than one source, but if you can’t there is always unemployment checks to collect if you lose your job.

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