Why having a side income is important in 2023

The big learning from 2021: It’s important to have a plan B

2021 started on an almost hopeful note: the pandemic in India seemed to be coming to an end, and things looked like they were under control. However, a few months into the year, the deadly second wave hit and the country quickly—and unexpectedly—entered another lockdown. This lockdown impacted the economy; many people across industries and geographies lost their sources of income, either because they lost their jobs or their businesses closed down due to lack of demand. 

A sudden loss of income is scary for individuals and families, even if they have savings. This is why every individual needs a plan B, a second source of income, especially if they have dependents. This second source of income can help them get through difficult times, even if it’s smaller than the primary income. Having a second source of income is important because of the following reasons:

1. Loss of unemployment/business can be sudden

Whether you are an employee, a professional, or a business owner, losing your source of income can be sudden and unpredictable. The business environment is complex, with many factors impacting it. The COVID-19 pandemic is the perfect example of this—businesses across the world were hugely disrupted almost overnight, and no one could see it coming. Employees can lose their jobs, professionals, their clients, and businesses their customers when they least expect it. During such times, having a second source of income can help until the employee finds a job again, and the professional and business owner can rebuild their practice/business.

2. Expenses don’t stop
 

Unexpected circumstances might stop your income, but nothing can stop your expenses. Expenses can be reduced, but they cannot be eliminated. You will always need to buy food and pay for other necessities like electricity and a phone plan. Most people will also have other expenses like loan repayments, rent, and education expenses for their children. Since you cannot stop expenses, it is important to have a second source of income and earn extra income to replace your primary one if it stops.

3. Borrowing money is not a long-term plan

During emergencies, you might be able to borrow money to replace your primary income, but you cannot keep doing so long-term. Borrowed money needs to be paid back, usually with some interest. A study showed that 46% of Indians borrowed money during the COVID-19 lockdowns to pay for household expenses, while 27% borrowed to keep paying their EMIs. Using debt to replace income is a dangerous strategy because it keeps piling up until you restart earning an income. And even then, the interest burden can put great stress on your finances. With a second source of income, you might not need to borrow money at all, and even if you do, it will be a much smaller amount.

4. Stress is best kept away

Losing their primary source of income can be a traumatic experience for many people—it makes them feel scared, angry, and worried. Entering this cycle of stress is not good for people’s mental or physical health. Stressed people are less motivated to look for work and can put an emotional strain on their families, partners, and other relationships. Stress also makes people more vulnerable to physical issues and negatively impacts important biological functions like sleep.

MyFIRST Partner Program – An ideal side job

If you are looking for a second source of income, you need not look any further than the IDFC Bank’s MyFIRST Personal Loan Partner Program. This program is a unique referral program wherein you can earn a real income by helping sign borrowers up for IDFC FIRST Bank personal loans. You partner with IDFC First Bank to help your friends, family, and acquaintances get personal loans. In other words, you are the medium between the bank and the person who wants a personal loan.

The IDFC referral partner app allows you to work flexibly whenever and however you want without impacting your day job. For every successful personal loan referral, you receive 1.5% of the disbursed amount as a referral reward. This reward is uncapped and is paid on a weekly basis, and you can enjoy an additional income of Rs. 50,000, and a lot more, every single month. (T&Cs apply)  

Signing up on the IDFC MyFIRST Partner Program is very easy; it’s a fully digital process, with the only documentation requirement being a PAN card and bank account details. This way, you always have access to a second source of income on your own terms.

To earn over Rs. 50,000 and more every month, download the MyFIRST Partner Refer and Earn App TODAY! Start referring to enjoy a second income and unbelievable benefits: Click here to download or contact us for more information.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.