Should You Concentrate or Diversify your Income Sources?

I had a challenge for myself this month to do something different every day to make extra income. I haven’t been able to come up with that many different ways to make extra income but I have had some insights based on my experience so far.

Most of the things I’ve done to make extra money don’t pay much and don’t have much potential to make significant money. These things just take time away from other projects that have better prospects. For example, I already belong to a survey site so I might do an occasional survey for an extra $3 if I have extra time but I don’t think it is worth my time to pursue more survey opportunities. I only have so much time and mental energy available and it is best to spend that on projects that have better income potential.

Also I can see a possibility of getting bogged down by looking at all the different ways to make money that are out there. You might spend so much time trying to find the best way to make money that you never get started. Or you might try to develop several ways of making money at once which will probably lead to inferior results. This is because you don’t spend enough time on any one of them to improve your skills and become better. This is where the jack of all trades, master of none analogy applies. I think the better income potential would be in concentrating your efforts on just a couple of projects.

My main focus now is going to be on improving my blogs and websites. My secondary focus will be on working on my writing and selling it. This should work well since my secondary focus complements my primary focus. If I think of another income source that would fit with these two I might add it as well.

I’ll still have some other income streams that take a minimal amount of time and mental energy (i.e. interest,dividends, cashback).

Let me know what you think.