chrisreedrules

I would say diversification is key. Most millionaires aren’t so because of a single income stream. You need at least 3-5 in my opinion. The more the better.

Thedude86

I think a degree is pointless other than it’s what the majors want right now. My guess is in a year or less everyone will be hiring at the same pace they were just a month ago if not more since we will be deeper into the retirement boom. 1000 PIC will be valued no more and no less than it was just a month ago as well. Also, not saying don’t get a degree, but financially it’s probably not a good idea to spend thousands of dollars at this point in time if you think there’s any chance of a lay-off or furlough.

Itsajob

Do you really think that the global economy will recover from this that fast? Shelter in place orders are going on all over the world, businesses are going to fail from loss revenue, and not just the domestic, but the global economy is going to be hit hard. How can we have several months of this and be back to where we were in a year or less? United has already said that they expect our current reductions to intensify and last several months, followed by a slower than hoped for recovery, and a smaller company as a result.

itsmytime

stop it. You’ve been counting down the days to your flow since you got to your regional. Don’t act like if your number came up tomorrow you’d have to think about whether you were going to bypass or not.

Turbosina

The key to real wealth is being a successful employer. There's no better way to generate income than by making money for each hour that another person works on your company's behalf. The challenge is to minimize your risk; many businesses require a substantial initial and ongoing investment, which will always be at risk when the economy takes a dive. And believe me, there's no more difficult or time-consuming job than running your own company. It's nearly 24/7, and when someone calls in sick, or the bank screws up payroll, or your office Internet goes down, or the client arbitrarily changes your deadline or refuses to pay for services rendered, or one employee claims they were harassed by another... Guess who deals with it? You do. Speaking as the founder and owner of a 40-person company, these are just a few of the things I deal with constantly. I have probably aged 15 years in the 7 since I started my firm. As an example, just this Saturday morning, I received an alert that our bank's online wire transfer system had crashed. Payroll was due today at noon for processing, otherwise my people wouldn't get paid Monday. So I had to race down to a local branch -- closed due to Covid. Did 90 mph to get to an open branch. Made it in as the last customer -- since the bank was closing early due to the shelter-in-place order here in the SF Bay Area. Just made the cutoff by 5 minutes. That's what a weekend is like when you own a business. By comparison, my flying job, which I love dearly, is orders of magnitude less stressful and more enjoyable.

Real estate can obviously generate substantial passive income, but most novices think it's much easier than it is. First, if your property is financed, it's almost impossible to generate positive cash flow,; the best you can do is have your rental income cover your mortgage (which indeed builds wealth through equity), but it'll be a long time before you actually see positive cash flow. Second, the costs add up: property taxes, insurance, ongoing maintenance (groundskeeping, pest control), unexpected maintenance, HOA fees if you own condos, losses from unpaid rents, court costs for evictions, utilities, and so on. I own 11 rental units in 2 states, and if all goes well (ie few evictions, no major maintenance issues), I'll be happy if I can clear 5 % on my investment every year. That doesn't count price appreciation but also ignores the risk of price crashes, like happened in 2008-09 and is about to happen again. And it also sucks up your time. Even with a residential property management company, you're still having to expend time and effort just managing your rentals. It's not really 'passive' although many people call it such.

So yes. Multiple income streams are highly advisable. They're just really difficult to construct.

123494

Would you mind sharing what type of business? Also, I find it different for people who had good jobs/business owners who decided to fly as a second career. Most of those guys are happy versus some of us who have done this forever.

chrisreedrules

Of course I would. I never said I wouldn’t. But I’m also not going to wait on a flow that may or may not exist on the backside of this.

chrisreedrules

All of my properties are financed and I’m averaging about 8% ROI YOY. Almost 12% on one property. But like you said those type of deals are almost non-existent in today’s market. But in 12-18 months? I think there will be a lot of opportunity.

Bahamasflyer

Sounds like an absolute ongoing prison sentence! I serious would rather make $60K as a
regional FO than $500K doing that!

tnkrdrvr

Enjoy your $60k. You earn it, but don’t gripe about your landlord who drives a new Porsche. He earned it too. The point is financial security comes through continuing hard work and will never be stress free