Comments on: Alternative Income is a Form of Insurance http://cashmoneylife.com/2009/05/07/alternative-income-insurance/ Money Management, Small Business, Career Sat, 20 Mar 2010 20:53:50 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Ryan http://cashmoneylife.com/2009/05/07/alternative-income-insurance/comment-page-1/#comment-18098 Ryan Tue, 12 May 2009 02:05:57 +0000 http://cashmoneylife.com/?p=669#comment-18098 <strong>DDFD: </strong>I've never heard it called "Defensive Entrepreneurship" before, but I think that is a great term! Glad to hear it worked out well for you! :) DDFD: I’ve never heard it called “Defensive Entrepreneurship” before, but I think that is a great term! Glad to hear it worked out well for you! :)

]]> By: DDFD at DivorcedDadFrugalDad http://cashmoneylife.com/2009/05/07/alternative-income-insurance/comment-page-1/#comment-18095 DDFD at DivorcedDadFrugalDad Tue, 12 May 2009 01:26:43 +0000 http://cashmoneylife.com/?p=669#comment-18095 I call this Defensive Entrepreneurship. Defensive Entrepreneurship is starting a business or businesses as a hedge against job loss or other financial setback. These "spare time" ventures are usually conducted at night ("moonlighting") or on weekends. They are sideline businesses that provide extra cash in good times that supplements your full time gig. However, they can provide stop gap help in tight spots in the event of a job loss. This happened to me a few years ago-- I had a sideline business that I did full time as I looked for a new job after a layoff. Best time to start-- before you "REALLY" need it. I call this Defensive Entrepreneurship. Defensive Entrepreneurship is starting a business or businesses as a hedge against job loss or other financial setback.

These “spare time” ventures are usually conducted at night (“moonlighting”) or on weekends. They are sideline businesses that provide extra cash in good times that supplements your full time gig. However, they can provide stop gap help in tight spots in the event of a job loss. This happened to me a few years ago– I had a sideline business that I did full time as I looked for a new job after a layoff.

Best time to start– before you “REALLY” need it.

]]> By: Ryan http://cashmoneylife.com/2009/05/07/alternative-income-insurance/comment-page-1/#comment-18091 Ryan Mon, 11 May 2009 23:39:38 +0000 http://cashmoneylife.com/?p=669#comment-18091 <strong>BM: </strong>Great comment, and you're 100% correct. Working extra hours can certainly take a toll on your health and relationships. I struggle with this sometimes with running my websites, and it can be a difficult balancing act. I have found it helps to cut back in some areas, and if that means no more working side jobs or taking on new projects, then so be it. My family and friends are more important than the money I earn running a side business or working after hours. I'm glad you were able to realize what was happening in your life and put an end to the additional work before it caused too many problems. BM: Great comment, and you’re 100% correct. Working extra hours can certainly take a toll on your health and relationships. I struggle with this sometimes with running my websites, and it can be a difficult balancing act. I have found it helps to cut back in some areas, and if that means no more working side jobs or taking on new projects, then so be it. My family and friends are more important than the money I earn running a side business or working after hours.

I’m glad you were able to realize what was happening in your life and put an end to the additional work before it caused too many problems.

]]> By: BM http://cashmoneylife.com/2009/05/07/alternative-income-insurance/comment-page-1/#comment-18090 BM Mon, 11 May 2009 20:11:13 +0000 http://cashmoneylife.com/?p=669#comment-18090 I also took up some consulting work outside of my regular job few months ago, partly in anticipation of my wife taking a longer maternity time off and uncertainties of my own job. Although it's great to have an additional income, there is a price to pay for this. One of the first casualty was sleep, these days I sleep 2-3 hours less than my regular sleep and there is always bags around my eyes. Second causality is relationships, Besides the obvious effect on immediate relationships, I have not made any phone calls or emails to friends and family for quite a while, then physical health takes a beating, when I am under stress of a deadline, I end up eating junk/sweets early in the morning and skipping on my morning 30 min run. Finally it feels like life around me is slowly falling apart, so much so that I am considering not doing any more freelance work after this assignment is done. One thing I realized during the last couple of months is that one has to be a very organized personality to be able to pull this off, which I am clearly not. I also took up some consulting work outside of my regular job few months ago, partly in anticipation of my wife taking a longer maternity time off and uncertainties of my own job. Although it’s great to have an additional income, there is a price to pay for this. One of the first casualty was sleep, these days I sleep 2-3 hours less than my regular sleep and there is always bags around my eyes. Second causality is relationships, Besides the obvious effect on immediate relationships, I have not made any phone calls or emails to friends and family for quite a while, then physical health takes a beating, when I am under stress of a deadline, I end up eating junk/sweets early in the morning and skipping on my morning 30 min run. Finally it feels like life around me is slowly falling apart, so much so that I am considering not doing any more freelance work after this assignment is done. One thing I realized during the last couple of months is that one has to be a very organized personality to be able to pull this off, which I am clearly not.

]]> By: Kristy @ Master Your Card http://cashmoneylife.com/2009/05/07/alternative-income-insurance/comment-page-1/#comment-18076 Kristy @ Master Your Card Sun, 10 May 2009 20:19:08 +0000 http://cashmoneylife.com/?p=669#comment-18076 This is so true! I've always had some sort of alternative income coming in; however, I haven't always managed it well. Historically, I've increased my standard of living. But, all that did was burn me out. I was working myself ragged just to survive. It was not about getting ahead, like it should have been. Recently I've been trying to simplify my life to the point where I can live quite comfortably on 50% of my salary. Once I get there, it will make my alternative income "extra" and I can really get that travel fund I've been going after this year funded. Baby steps. Still, I think alternative streams of income are helpful no matter what stage you're in. This is so true! I’ve always had some sort of alternative income coming in; however, I haven’t always managed it well. Historically, I’ve increased my standard of living. But, all that did was burn me out. I was working myself ragged just to survive. It was not about getting ahead, like it should have been. Recently I’ve been trying to simplify my life to the point where I can live quite comfortably on 50% of my salary. Once I get there, it will make my alternative income “extra” and I can really get that travel fund I’ve been going after this year funded. Baby steps. Still, I think alternative streams of income are helpful no matter what stage you’re in.

]]> By: Ryan http://cashmoneylife.com/2009/05/07/alternative-income-insurance/comment-page-1/#comment-18055 Ryan Fri, 08 May 2009 18:15:28 +0000 http://cashmoneylife.com/?p=669#comment-18055 <strong>Enrique: </strong>Even a little bit of additional income can help out. It helps pay bills earlier, boosts savings, or helps defray your expenses if you lose your main source of income. Good luck building your alternative income streams! :-) Enrique: Even a little bit of additional income can help out. It helps pay bills earlier, boosts savings, or helps defray your expenses if you lose your main source of income. Good luck building your alternative income streams! :-)

]]> By: Enrique S http://cashmoneylife.com/2009/05/07/alternative-income-insurance/comment-page-1/#comment-18054 Enrique S Fri, 08 May 2009 17:50:09 +0000 http://cashmoneylife.com/?p=669#comment-18054 I like your analogy. I've started building up my alternative income streams, but still have a long way to go before i can consider them to be insurance. I like your analogy. I’ve started building up my alternative income streams, but still have a long way to go before i can consider them to be insurance.

]]> By: Ryan http://cashmoneylife.com/2009/05/07/alternative-income-insurance/comment-page-1/#comment-18053 Ryan Fri, 08 May 2009 17:25:22 +0000 http://cashmoneylife.com/?p=669#comment-18053 <strong>Curious Cat Investing Blog: </strong>Agreed. I'd like to get a rental property, but with everything else I have going on right now, this is not the time! Curious Cat Investing Blog: Agreed. I’d like to get a rental property, but with everything else I have going on right now, this is not the time!

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