Income Is Your Biggest Asset – How Do You Protect It?

We have all gotten used to the idea of insuring our homes, cars, phones, or any piece of property we own.

But how many of us stop and think to ensure our income?

The thing that literally pays for all of it? Over the lifetime, your paycheck is far more valuable than that trendy phone you got, or in some cases, even a house. And yet, when you look at most personal finance advice, it treats income like it’s invincible.

To put it in perspective, if you earn $75,000 (USD) a year, in 30 years, that is going to add up to $2.25 million. This is your most valuable asset. Yet most people don’t have a habit of actively protecting it.

Take gig workers and side hustlers as an example – they have no paid leave like someone working for a corporation would have.

Basically, what happens is that income becomes completely exposed, which is why such situations are a risk worth planning for.

The Math Behind ‘Protecting Your Income’

Ever heard of the saying ‘Having money isn’t everything, but not having it is.’

What this means, in layman’s terms, is that money isn’t the most important thing in life, which is true. But it’s only when you’re in the situation that you don’t have enough of it, and you need it urgently, that you realize that money becomes EVERYTHING.

It’s easy to say ‘money isn’t everything’ when you have plenty of it. And some might even call you ‘shallow’ for pointing this out. But that’s the core truth.

And people who need the money but don’t have it know it the best. This is also why you’ll often see people who say these types of things coming from medium- to high-income households.

So yes, there is some truth to it. But it’s really a narrow viewpoint of a much more complex situation.

Money is the fuel to your fire. At least it is in the world we live in. So all your emergency funds, your retirement accounts, debt payoff, daily living, your overall freedom to plan for the future – all of that is dictated by money.

Without it, the whole system collapses. The reality is that income is surprisingly fragile. Gig workers have no paid sick days; if there’s no work, there is no money coming. And medical costs can wipe out months of savings in a second.

But think about the following scenario for a second:

You’re hungry, and now you’re driving to get a steak from the restaurant.

The traffic feels calm, and you stop at the red light. Then another driver glances at their phone, misses the red light, and hits your car.

You become injured enough that you can’t work for six to eight weeks. Beyond all the lost paychecks, there are medical bills and insurance gaps.

Recovery after a pedestrian accident injury can stretch far longer than most people expect. That does accumulate quickly, and it matters. Think about it – while you’re there recovering, your income is paused. But the expenses? They keep coming; they don’t really stop.

That’s why it’s important to recognize that low-probability events can be devastating to your wallet if you’re not prepared.

And this is also the reason why you should always hire the right lawyer and an experienced one; ideally, a pedestrian accident injuries and recovery lawyer – one who specializes in cases that you’re dealing with right now.

A Simple Income Protection Plan

It really does not need to be a complicated approach.

Here are a few steps to follow that anyone can apply to their life.

Your Emergency Fund Based on Risk

Usually, the advice is to have 3 to 6 months of expenses saved up. But if you get injured and your income relies on some sort of physical activity, you might need to save even more.

Look at your monthly expenses and try to build a safety net to prepare for the worst-case scenario.

Insurance

Whether it’s health insurance, short-term, or long-term disability coverage, it can make a big difference in your recovery plan. Check your deductible, the out-of-pocket maximum, and what is generally covered if you can’t work.

Gig workers have none of this by default. Find and cover the gaps to ensure yourself.

Single-Point Income Failure

If 100% of your income comes from one physically demanding source, your risk is concentrated.

Diversify wherever possible. Look at remote side hustles or any income streams.

Recovery Time

While you’re recovering, your income might come to a complete stop, while the bills keep on coming. If you didn’t plan for that beforehand, you might find yourself in trouble.

Plan for that cushion from the get-go so that you always stay afloat (a safety net), regardless of what might happen.

Conclusion

It’s better to have a plan B and never use it than not have a plan B when you need it.

And this is pretty much what this article is about. You have your income, and everything in your life flows like clockwork while that income is there. But what if that same income were to suddenly stop – for whatever reason (e.g., you lose a client, you become sick, you get injured, something happens). Would your life still flow like clockwork? Or would you shift to full-blown PANIC MODE?

If the answer is the latter, that means you haven’t protected your income stream, you haven’t prepared for the ‘unexpected’.

Hopefully, now you look at this situation from a different angle, and you have a general idea of what you must do to prepare yourself in advance.

Keep your income stable and don’t forget to keep it protected.

Only this way will you be able to live stress-free and at ease (at least from a ‘finances’ perspective).

This post may contain affiliate links.

More Recommended Ebike/Scooters

Check out these other ebikes and scooters I've reviewed:

Urban Arrow Ebike – Last year, I made one of the largest purchases I’ve ever made – I bought a $9,000 electric cargo bike from Urban Arrow. In my Urban Arrow review, I will discuss what it is and why I decided to buy this bike, as well as discuss how impactful a bike like this can be on your journey to financial independence.
Troxus Explorer Step-Thru Ebike – The Troxus Explorer Step-Thru is a fat-tire ebike that I’ve had the pleasure of riding for a while now. It has amazing power, great looks, and awesome range. If you’re looking for a great fat-tire ebike that offers a lot for the price, the Troxus Explorer Step-Thru is definitely one for you to consider. Check out my Troxus Explorer Step-Thru Review.
Hovsco HovBeta Ebike – The HovBeta is a folding ebike with great specs and a lot of interesting features, and importantly, it’s sold at a good price point. I’ve had a blast commuting with it and using it to do deliveries with DoorDash, Uber Eats, and Grubhub. Check out my Hovsco HovBeta Ebike Review.
Vanpowers Manidae Ebike – The Vanpowers Manidae is a fat tire ebike that I’ve been riding as my primary winter commuting bike and have also been using it to do food delivery with apps like DoorDash, Uber Eats, and Grubhub. After clocking in a decent number of miles with this ebike, I wanted to write a post sharing what my experience with the Vanpowers Manidae ebike has been like. Check out my Vanpowers Manidae Review.
Sohamo S3 Step-Thru Folding EBike Review – A Great Value Folding Ebike – The Sohamo S3 Step-Thru Folding Ebike is an entry-level folding ebike that offers a lot of value for the price point. I’ve been riding the Sohamo S3 for a while now, putting the bike through its paces, and I have to say, this bike has exceeded all of my expectations. Check out my Sohamo Review.
KBO Flip Ebike – The KBO Flip is an excellent bike. I’ve had a great time riding it and think it’s a versatile bike that can be used for a lot of purposes and can fit a variety of lifestyles. It’s worked out great for me as a general commuter bike and as a food delivery bike. Check out my KBO Flip Review.
Hiboy P7 Commuter Ebike – The Hiboy P7 is an excellent electric commuter bike that’s offered at an affordable price point. The range and speed of this bike are both very good, so you won’t have any trouble getting anywhere you need to go with it. As a food delivery vehicle, this is also good – with how much range it offers, you’ll be able to work all day on a single charge. Check out my Hiboy P7 Commuter Electric Bike Review.
Himiway Escape Ebike – The Himiway Escape is an interesting bike for anyone looking for a moped-style ebike. If you’re a gig economy worker, the Himiway Escape is particularly interesting and it’s possible to think of it as an investment, especially if you can opt to do deliveries with the Himiway versus using a car. It’s not cheap, but you can definitely make your money back when you compare the mileage you’ll put on your car versus using an ebike. Check out my Himiway Escape Bike Review.
Espin Sport Ebike – The Espin Sport is a good ebike for someone who is looking for an ebike that feels and rides more like a regular bike. There are many ebikes that are really only bikes in name. In reality, they’re basically electric mopeds. The Espin Sport, by contrast, is a bike you could probably ride without the battery and you’d feel like you’re just riding a regular bike. Check out my Espin Sport Review.
Varla Eagle One Scooter – The Varla Eagle One is an excellent scooter that can make sense for a lot of people. It can work as a primary mode of transportation. You can use it to work on gig economy apps like DoorDash, Uber Eats, and Grubhub. And it can also be a recreational vehicle if you’d prefer to use it for that. Check out my Varla Eagle One Review.
Varla Falcon Scooter – The Varla Falcon is an excellent scooter that offers a good amount of power at a lower price point compared to more powerful scooters. It’s not exactly an entry-level scooter, nor is it a high-powered scooter. I think it fits somewhere in-between those two categories – an intermediate scooter if I had to give it a category. Check out my Varla Falcon Review.
Hiboy S2 Scooter – The Hiboy S2 is an excellent entry-level commuter scooter that's perfect for someone looking to save some money in transportation costs and improve their commute. Check out my Hiboy S2 Review.
Hiboy S2R Scooter – The Hiboy S2R is one of the more interesting electric scooters I’ve been able to test out. It’s not a high-powered scooter, but for an everyday transport option, it’s very useful, especially given some of the unique features that it has. Indeed, for the price, the Hiboy S2R might be the best value scooter I’ve used. Check out my Hiboy S2R Review.
Fucare H3 Scooter – The Fucare H3 is a fun scooter and I’ve enjoyed testing it out. For a daily commuter or quick trips or errands, the Fucare H3 is probably the scooter I’ll use. It’s portable and easy to maneuver, so it’s just easier to take on the road when I need it. Check out my Fucare H3 Scooter Review.

More Recommended Investing App Bonuses

For additional investing app bonuses, be sure to check out the ones below:

M1 Finance ($75) – This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $75 for opening an account. Check out my M1 Finance Referral Bonus – Step-By-Step Guide.
SoFi Invest ($25) – SoFi Invest is an easy brokerage account bonus that you can earn with just a few minutes of work. Use my SoFi Invest referral link, fund your SoFi Invest brokerage account with just $10 and you’ll get $25 of free stock. I also have a step-by-step guide for the SoFi Invest referral bonus.
Robinhood (1 free stock) – Robinhood gives you a free stock valued between $2.50-$225 if you open an account using my referral link.
Public (1 free stock) - Public gives you a free stock valued between $3-$70 if you open an account using my referral link.

More Recommended Bank Account Bonuses

If you’re looking for more easy bank bonuses, check out the below options. These bonuses are all easy to earn and have no fees or minimum balance requirements to worry about.

Ally Bank ($100) – Of all the banks out there, Ally is, without a doubt, my favorite. At the moment, Ally is offering $100 to customers who open an eligible Ally account and meet the requirements. Here are the step-by-step directions to earn your Ally Bank referral bonus.
Chime ($100) - Chime is a free bank account that offers a referral bonus if you use a referral link and complete a direct deposit of $200 or more. In practice, any ACH transfer into this account triggers the bonus. This bonus is easy to earn and posts instantly, so you’ll know if you met the requirements as soon as you move money into the account. I wrote a step-by-step guide on how to earn your Chime referral bonus that I recommend you check out.
US Bank Business ($400/$1200) – This is a fairly easy bank bonus to earn, since there are no direct deposit requirements. In addition, you can open the Silver Business Checking account, which comes with no monthly fees. Check out how to earn this big bonus here.
Current ($50) – Current is a free fintech bank that’s offering new users a $50 referral bonus after signing up for an account using a referral link. Current is an easy bonus to earn and also gives you access to three savings accounts that pay you 4% interest on up to $2,000. That means you can put away up to $6,000 earning 4% interest. That’s very good and makes Current an account I recommend to everyone. Check out my step-by-step guide on how to earn your Current Bank bonus.
Novo Bank ($40) - Novo bank is a free business checking account that’s currently offering a $40 bonus if you open a Novo business checking account using a referral link. In addition to being a good bank bonus, Novo is also a good business checking account. It has no monthly fees or minimum balance requirements and operates a good app and website. Indeed, it’s the business checking account I currently use for this blog. Check out my post on how to easily open a Novo account.
Varo ($25) – Varo is a free fintech banking app similar to Chime or Current. It’s currently offering a $25 bonus to new users that open a new Varo account with a referral link. The bonus for this bank is very easy to meet, all you need to do is spend $20 within 30 days of opening your Varo account. Check out my step-by-step guide to learn how to earn this bonus.

Kevin is an attorney and the blogger behind Financial Panther, a blog about personal finance, travel hacking, and side hustling using the gig economy. He paid off $87,000 worth of student loans in just 2.5 years by choosing not to live like a big shot lawyer.

Kevin is passionate about earning money using the gig economy and you can see all the ways he makes extra income every month in his side hustle reports.

Kevin is also big on using the latest fintech apps to improve his finances. Some of Kevin's favorite fintech apps include:

SoFi Money. A really good checking account with absolutely no fees. You'll get a $25 referral bonus if you open a SoFi Money account with a referral link, and an additional $300 if you complete a direct deposit.
5% Savings Accounts. I'm currently getting 5.24% interest on my savings through a company called Raisin. Opening a Raisin account takes minutes to complete, it's free, and all of your funds are FDIC-insured. I explain how it works, why I'm now using it to store my emergency fund and any other cash savings I have, and why I recommend everyone check it out in this review.
US Bank Business. US Bank is currently offering new business customers a $400/$1200 signup bonus after opening a new account and meeting certain requirements.
M1 Finance. This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $75 for opening an account.
Empower. One of best free apps you can use to monitor your portfolio and track your net worth. This is one of the apps I use to track my financial accounts.

Feel free to send Kevin a message here.