The Importance Of Having A Second Source Of Income

      The Importance Of Having A Second Source Of Income

Having a second source of income is becoming more common over time in The United States, which increases the demand for having a second source of income. As the unemployment rate rises and technology takes over jobs. Some people find it too important to become entrepreneurs to be able to be in control over their income. Despite many obstacles of having your own business which can be very difficult it is still worth the effort. However, with the stock market meltdown and thousands of America’s 401k accounts that have lost significant value, has hit the Americas economy drastically. Now more than ever the need for having a second source of income is important with millions of jobs than have been lost due to the coronavirus. How are people going to pay bills?

There are several different types of  entrepreneurship whether it’s having your own business being a barber, rapper, investor, or even hairstylist they have goals that they’re trying to meet but they have their own individual reasons for why they want to become an independent business owner. It is important to emphasize having a second job or income research has shown that having passive income can and will build real wealth. When I look around the world and I see the effects of the coronavirus it is clear that being a barber and hairstylist that the virus doesn’t care who you are or the effects that it might affect you. It will put you out of work quicker than you would have expected and things can get out of hand very quickly. What if i told you that being an investor was recession proof and there’s a way that you could make money in the midst of the madness going on? Although the stock market has crashed and a lot of people have lost their money in the stock market “The Federal Reserve even though it cut the interest rate on Tuesday to help guard against the economic ramifications of the coronavirus, saying that the central bank should be lowering the rate even further.”(Greifeld.,Katerine)  The federal government has put a stop to all stock market activities so that when the stock market resumes no one can take money out. The action is necessary to keep the money flow in banks. When you deposit money in banks you give banks permission to invest your money into a market  which is regulated by the Department Of Treasury. In return give you a point of percentage in return to your account.

During these hard times people are becoming restless the need for a vaccine for something that seems to be untreatable has been on the mind of America’s. Government officials have placed shelters in places that have left people in their homes and children out of schools taking their course work online via zoom or google classroom.Now imagine being categorized has a non essential worker a being told to say at home not many people knew that they weren’t so much important until the other day when a virus hit that took them completely out of a job. There is a demand for pharmacy supplies such as vitimas and medicines used to boost the immune system. Drugs like Chloroquine and Hydroxychloroquine have been said to be a possible cure for the coronavirus.”The medicine that currently treats Malaria, Rheumatoid Arthritis, and Lupus was recently endorsed by President Donald Trump as a possible treatment for coronavirus.”(NBCH New Staff).  The panic of not knowing has affected the mental health of someone who is not working that creates a depressing state of sorrow. Being an independent business owner gives the privilege of having your own time. You provide your own income that can support your family when you have been laid off or temporarily out of a job.

The Trump administration has already imposed limits on travel from China, barred all travel to Iran and issued warnings to Americans not to travel to parts of Italy and South Korea. The Department of Homeland Security has added other countries to other countries such as the UK, Ireland, and African countries. The more people that gather in large groups have a greater risk of spreading the virus to another and to us which creates chaos.In a result to this many people have to rely on unemployment checks that go based on the checks that they receive from work.

With unemployment at its all time low it could take a while for things to go back to all it used to be before everything started happening.The coronavirus is a respiratory disease that can get out of control very quickly within quicks millions of jobs have been lost.

Government officials are placing shelters in place where american people are being asked to self quarantine themselves at home to slow down the spread of the virus. Nevertheless, there has been a spike of online business such as trading in the foriegn exchange market. In the midst of the madness outside, many are benefiting from the chaos resulting in big wins for those investing in currencies as other countries are collapsing. When other countries have big news traders can take advantage of the activity in the market whether it’s a buy or a sell. The foreign exchange is recession proof meaning if there is an economic crash you can survive it with lots of cash.As people are quarantined at home investing your money would be a smart choice that would allow you still provide for your family while being home.Your bills wont stop coming your mortgage or rent needs to get paid what are you going to do when you don’t have money to pay your bills any more there is nothing that you really can do to make it better because you can’t go anywhere. “The analysis, conducted by the U.S. Centers for Disease Control and Prevention, offers good news for public health and government officials who are still learning how contagious the illness is. While it comes with several important caveats as more cases are found every day, it suggests that effective infection control and prevention methods could dramatically reduce the risk that the virus will continue to spread widely.”(Cortez,Michelle)

The thesis of the paper is to inform my class the benefits of having a second source of income that can provide when there jobs can no longer. The research that I have gathered has proved my research to be true based current events that have crippled the world’s economy and caused the stock market to crash thousands have lost their jobs causing a huge financial crisis. Making investments not just including the stock market but any investment can have you set for years. When you  realize that you can’t just have one source of income to be able to survive then understand that having a second source is smart because you are securing money that can be needed to carry you through an emergency.

As the stock market hit its all time low and stock futures hit limit, Asian stocks and U.S. equity futures tumbled after a surge in the global death toll from the coronavirus and a failure as yet by Congress to agree on. As S&P 500 has loss significant value this stock is a major

It is used to trade in the stock market but can be traded in the foreign exchange market.’The sudden shutdown of much of the world’s largest economy has sent stocks diving from all-time highs into a bear market at a record pace. Wall Street now thinks a deep recession is a foregone conclusion, and Goldman Sachs expects Corporate America to pay a heavy price as earnings per share (EPS) get hammered”.(Ro,Sam) In the market words like “Shutdown” are bad because the market shows no sign of getting better which draws us closer to an economic crash.

In conclusion, whether you work a 9-5 job that pays you 6 or 7 figures you can’t just rely on one job that is going to pay you. A virus can hit today or tomorrow that can cripple your investments in the 401k accounts that are supposed to be saved for retirement. Having an entrepreneur mindset can go a long way in your life that can be beyond helpful in your life.

Once you understand that you need to have savings that can support through tough times then you will know that having a business idea that you can market can put you in a position of having money to say you have it. Despite many challenges of having your own business that can be very challenging. Additionally, it’s never going to be easy but you give up.

Work cited

Ro,Sam  “Goldman Sachs: S&P 500 could fall to 2,000 as corporate losses mount” Finance Yahoo 22 March 2020

https://finance.yahoo.com/news/goldman-sachs-sp500-q2-earnings-estimate-123-percent-decline

-192847793.html

Greifeld.,Katerine “ U.S. Stocks Tumble After Powell Virus” Bloomberg 03

March 2020

https://www.bloomberg.com/news/articles/2020-03-02/asia-stocks-to-gain-on-policy-support-yen-drops-markets-wrap

Cortez,Michelle “Virus Study Finds Most Risk Among Family, Less for Others” 03 March 2020

https://www.bloomberg.com/news/articles/2020-03-03/coronavirus-study-finds-most-risk-among-family-less-for-others

NBC4 Staff “Ohio Board of Pharmacy takes steps to prevent stockpiling of drugs” 22 March 2020