Reducing financial risk

Too many people live one paycheck at a time which creates an "actual" risk of having severe problems once an actual emergency arises. 29% of bankruptcies are attributed directly to medical costs, and the news reminds us frequently of how the loss of jobs has increased the number of foreclosures. It's a shame that folks would lose homes and vehicles as a result. The best way to avert these risks is to create a financial plan (risk mitigation) and to develop what I like to call "different streams of revenue". This is also a risk mitigation strategy.

There are many ways to develop different streams of revenue. Selling products on eBay is one of the most popular. Many of us know individuals who sell Mary Kay, Pampered Chef, and other products. Developing a website that sells products, or provides a service can also help. In our house, we are providing the finishing touches to the web site PCPriceSearch.com which allows you a one-stop shop to price compare computers and computer components, find similar items on eBay, or get relevant Google adwords. When a visitor makes a purchase, a commission is paid from the seller to the affiliate, and the consumer is able to easily price shop at one site rather than clicking through dozens of Google results.

A friend of mine is also using this idea of revenue streams to fund a children's orphanage and feeding program. James Kinyanjui also runs OCM Ministries. To support his work in Kenya, James is an independent representative for a company called ACN. ACN provides services such as cell phone, satellite, home security, etc. When a visitor to James' page purchases a service, he gets a commission check.

These are a couple of ideas, and there are unlimited possibilities. My lovely wife Laura makes and sells homemade salsa, and a neighbor does home improvement projects on the side. All of these ideas can help create different revenue streams so you can mitigate financial risk. What ideas do you have for creating new revenue streams?