The need to start diversifying your income as soon as possible is all the more apparent when you are a parent in USA compared to the UK and Europe. In no other country is the costs of a private education so expensive. In terms of revenue growth over a career life your salary will grow at a simple arithmetic rate over time. But in terms of inflation over time your real purchasing power is devaluing which means every 10 years forward you are able to purchase less and less.


Planning ahead can be a nightmare.

Consider this cost for private school education in one year in USA for 2016:

1. 2 Semesters in a year - tuition fee = $125,000
2. Books and materials= $7,000
3. Food and clothing =  $20,000
4. Housing = $30,000

That's $183,000 not including travel and miscellaneous emergency bills and cell phone and Internet usage.  State community colleges in USA can incur expenses all-inclusive up to $50,000 in one year and all that for one child entering college. Now try compute future college expenses if you have two or three children for just one year let alone four years of college life.

While loans can cover expenses, loans are loans and need to be repaid with interest. That is why parents should set up a college fund for their child a soon as possible and save for their child education.

Clearly 90% of American workers are being left behind with no hope of meeting college expense obligations for their children. Furthermore, the middle classes are being crippled by debt burdens to meet their obligations to fund their children's education.

All around the world incomes are barely rising whilst the costs of food, transport and clothing is rising on a year on basis. Globally the middle classes are being squeezed more and more every year.

The current US Median Income is $53,657 per year. That's frightening.

http://www.pewresearch.org/fact-tank/2016/05/11/are-you-in-the-american-middle-class/



This is why it is imperative to develop a rational plan for securing a second income. A salary from a career is usually not enough to put towards your child's future education. Just look at the math. Even a physician and a lawyer and other professionals would struggle to secure the type of revenue to fund four years college education for an average family of two children.

In no other time has the need to save and grow a consistent second income become more apparent. Whether it is import and export, or a franchise, or consulting or buying properties to let; invest you must. You must try to live beyond your means and do away with unnecessary purchases. Making a five year and ten year plan is not being overtly pessimistic. It is the rational thing to do to plan ahead how to build a second income on top of your current family income to save for your children's future education.