Growth & Jobs | Back up plan - Redundant worker bounces back on side business

THE ECONOMIC crisis wrought by the COVID-19 pandemic, which has resulted in massive job losses globally, underscores the importance of having multiple sources of income.

Having a secondary source of income is a principle that Ramona Fearon, a resident of Roehampton in St James and father of a seven-year-old child, embraced long before COVID-19 became a concern.

“I grew up learning that if you work for somebody, you should have a back-up [job],” he stressed, adding that it becomes a necessity in the event of job loss.

As fate would have it, he was one of several workers at his former business place who lost their jobs at the end of March. He shared that he was made redundant from the company for which he had worked for the past 11 years while others were laid off.

While employed full time as a meat processor, Fearon maintained a side businesses, operating a taxi and a 40-foot chicken farm, with some 400 chickens.

STAYING AFLOAT

Fearon was quick to point out that although his chicken farm has also been affected by the pandemic, the reduced income that it now generates is still able to pay his bills.

“My former customers closed their restaurants, therefore, I don’t have many customers anymore. I mostly sell to the cook shops now,” he disclosed.

To stay afloat, he has turned his attention to cash crops while still operating the chicken farm. He is now in the process of planting cucumber, sweet pepper seedlings, and plantain suckers. The vegetables, he said, will be ready for reaping in another two months while the plantains will be ready early next year.

Rose Miller, who has responsibility for the JN Foundation’s BeWise financial-empowerment programme, concurs that multiple income streams provide a financial safety net in case one loses his or her primary job.

“No job provides a guarantee that you’ll have it for life. Having other sources of income will get you back on your feet faster in case you lose your job,” she said.

“Pursuing a second income is easier than you think. You can do a side business online or monetise your talents such as sewing, baking, or public speaking. In addition, a second income stream could be something passive that does not require everyday involvement and input.”

She also asserted that with good time management, one can successfully operate a side business.

“Take the downtime now to identify your side-business interests, and develop strategies for it to work so that you can implement it right away,” Miller advised.

Five reasons to get going with a second income stream

1. It provides peace of mind: Having a second income helps to reduce stress that is normally associated with job loss. It helps people to cope better, knowing that they can still honour their financial obligations.

2. It creates financial security: The income for a side business could be used to take care of general expenses and recurring debt repayment such as a student loan, a mortgage, or a car loan. It also helps to pay off debt much quicker, thus reducing interest payments. Furthermore, a second income can be used to establish an emergency fund for unexpected eventualities such as a natural disaster and legal or serious health issues.

3. It helps to build wealth: The income from a side business can be dedicated to saving and investing as well as to obtaining assets such as real estate, a motor vehicle, or even to starting another business, thus increasing wealth.

4. It improves your current lifestyle: A second income also helps to achieve life goals such as taking an annual vacation at a resort, travelling abroad, pursuing other recreational interests, or simply being able to access private medical care.

5. It facilitates early retirement: Having more than one income stream will help to guide you into early retirement, giving you more time to enjoy your senior years and to explore new interests such as voluntary work.