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 ...
Drop the Debt Burden
- Set an achievable goal
- Make a budget, including debt repayment
- Use an app – make it easy
- Improve your credit score
- Try avalanche method of debt repayment
- Try the snowball method of debt repayment
- Adjust savings goals
- Adjust, or establish investment contributions
- Consider balance transfers to credit cards with lower interest rates
- Negotiate credit card rates
- Check your credit report
- Talk to a debt counselor, if applicable
- Ask for debt reduction
There is "good" debt - such as mortgage debt the produces income, but most Americans carry consumer debt that not on
...Get off the roller coaster - and still live the dream!
In an ideal world of aviation, pilots would start with a legacy carrier before they turn 30, start saving for retirement by at least maximizing their 401(k) account and stay married to the same spouse for the entire time.
The previous scenario should create a very nice income to support a very nice retirement lifestyle.
Unfortunately for many, "livin' the dream" doesn't look like that. It sometimes looks like you're hanging on for dear life!
Instead it's a roller coaster, with income taking massive swings as pilots progress from one airline to another, sometimes taking a furlough or displacement along the way. And those are the lucky ones!
Many pilots have seen their jobs collapse right under their promising career as the carriers close shop.
Personally, I have experienced two airline closures, two furloughs and a displacement.
Just when I though the going was going well, 9/11 happened. And then you realize it's well beyond your control.
Never again.
N...
Life after the cockpit
After more than 25 years in the cockpit, Captain Vince Kramer recently hung his wings up. Like so many airline pilots these days, he took an early retirement package from a major airline.
Here he offers some insight into how he found a passion and is pursuing it and hopes to inspire pilots facing furloughs and displacements to find their passions as well.
