Secure your financial flight path with diversified income

 Last week I was flying with a new hire First Officer and had a senior wide-body captain on the jumpseat.

 After all the nice pleasantries and taking off, our conversation turned to the last year's turmoil - the cost Covid-19 had on the airline industry.

The new First Officer thought he had made it - landed a pilot job with a Legacy Carrier.

 Both myself and the Senior Captain couldn't stress enough the importance of having a secondary source of income - just in case.

 In the airline industry, it's never "just in case." It's not a matter of if, but a matter of when - when the industry takes a nose dive again.

 It seems that aviation is hit with some sort of unpredictable and uncontrollable Category 5 financial hurricane ever eight to 10 years.

 9/11

 The 2008 recession

 Covid-19 lock-downs

 Several airlines didn't survive this round.

 Hundreds of pilots received the dreaded news:

“Due to current unforeseen business circumstances beyond our control, the Company has made the difficult decision to cease all operations. As a result, you will be placed on a mandatory furlough. This furlough is expected to be permanent, and we do not anticipate you to be recalled from this furlough.”

 I was lucky - my airline didn't furlough anyone, but there was speculation that thousands of pilots would be substantially less than they did the previous year.

 Those with additional income streams through side hustles, or strategic investments, flew through the financial gauntlet with minimal scaring.

 Others were less prepared. Several I know sold their homes in anticipation of lower incomes, and braced themselves for layoffs.

 Side hustles are no longer just a way to make some extra cash in your free time. In face, side hustles have emerged to become the norm in the workplace.

 More than a third of Americans have a side hustle the puts, on average, an extra $7,344 in their pocket each year!

 According to a study by Zapier, almost half of the Americans with a side hustle gave three reasons for doing so:

Diversify Income

Save for specific financial goal

Save for a specific purchase

 While all three are excellent reasons, commercial pilots can benefit the most from the first, a diversified income.

 We don't know what's next, but as the airlines ramp back towards profitability and expand their schedules, it's never too early to take those first steps in creating your additional income stream.

 As pilots, we are afforded a lot of time off. You can use a little of that time to create that additional income stream.

Covid-19 proved that no matter how lucrative the airline industry is, it's prone to hit wake turbulence every once in a while, and as we continue flying the friendly skies, it's best to have a side hustle or passive investment stream to diversify our income and create a more stable foundation for our financial lives.

The best time, to plant a tree was 20 years ago. The second best time is today.