I have heard it time and time again. The majority of Americans don’t have enough money saved to cover an unexpected $1000 expense. This means the majority of Americans have not even managed to save $1000 in case crap happens. If you are someone who fits in this category, then I don’t think your savings plan is working. That’s okay though. I have a simple savings plan that anyone can understand. And equally important, anyone can do. It’s called the Two Income Technique.
The Two Income Technique
This is exactly what it sounds like. This savings plan only includes two steps:
1. Establish a second stream of income;
2. Save all the income from that stream of income.
It’s that simple. Use one income to cover all your living expenses. Use the other income entirely for savings. We won’t go into all the ways to save money here, but you can read about some great ways to save money in my post: You Still Holding On To Cash???.
The obvious thought here is that the larger income will cover your expenses, and that will likely be true in most cases. But if you can get your second stream of income to earn more money that you need to cover your living expenses, then you are on to something big there!!! But how can you add a second stream of income?
Ideas For A Second Stream Of Income
There are many ways to add another stream of income to your household. Here are a few ideas:
1. Get a second job.
No, this may not sound like fun, but a second job is a very easy way to add another stream of income to your household. Or maybe if your spouse currently doesn’t work, they could pick up a job. Save all the money this person makes at the second job.
2. Start a business
That’s right. You can start your own business. Offer a service or product that you know people would like and put it out there. It may start as a side hustle, but if done well, it can become the only hustle you need.
3. Become a virtual assistant.
There are many people online who are looking for help. All you have to do is have some simple office skills and you can pick up an online job as a virtual assistant.
The Two Income Technique is probably the simplest savings plan on the market to understand and to implement. With just two steps: 1) Establish a second stream of income, 2) Save all the income from that second stream; is all it takes to get it going. I know, it will take some work to make this happen, but it is well worth it. There are a number of ways to add that second stream of income. You just need to find the best one that works for you. Do some research, find a way and get this started. You don’t want to find yourself in a tough situation without any savings to cover your back. Times like now, with the CoronavirusI causing all kinds of havoc, is the time where you’ll wish you had the savings to keep you afloat. Good luck and get to hustling!!!