Dodge the Recession

Let me begin by humbly asking a question to the young adults (aged 22-36)- “Do you know how it feels losing your only source of income? Your job is all that you rely on to pay the EMIs and expenses. What if that job is lost? It could be for any reason – economic turmoil (like in 2009 due to the Lehman Brothers crisis and then in 2019 the history repeated in the form of Covid-19).” Scores of people who lost their jobs were worried as their savings were depleting. Many could not even bear their living expenses and pay the EMIs for their loans. Even later when the job market stabilized the ones who wanted to join back were denied employment citing performance issues. It was shocking!!! Back in 1998 most of my earnings were allocated to Provident Funds and FDs and the remaining leaked out in expenses. I was living a life of dreams - weekend spending in pubs/movie halls. The only way I knew to grow the money was via the guaranteed scheme of savings. Ha ha! Years later during the economic crisis of 2009 I realized that I was living in a “Fool’s Paradise”. In 2009 (when reality hit me for the 2nd time) I started doing my research to find alternate sources of income. After a bit of research I came across a plethora of ways of making money other than through the job. There were options like franchise and own business. As I didn’t come from the business community or had the luxury of a lot of capital I felt it was too risky and started delving into other options. I also used to be inclined sometimes to give in to short-term solutions like making money through trading. But according to my experience these take a toll on your time and are very stressful. The other options were then earning dividend income from stocks and rental income from a property. Using these methods I didn’t have to keep an eye on these streams of income time after time and could continue with my job.