It is expensive to become an airline pilot but for some reason everyone thinks it takes pilots only a couple of years to pay back a pilot loan. Nothing is further from the truth as it takes the average pilot at least 20 years to pay back his or her pilot loan. A lot can happen during those 20 years! Losing an airline pilot job is one of the biggest causes to get into financial problems. So don’t let your future depend on a company that could be profiting today and bankrupt tomorrow.
In this article I will tell you more about why financial freedom is important, how to create financial freedom and the mistakes I made along the way.
Rather watch a video? I recently created the video below which covers everything you’ll find in this article!
Losing an airline pilot job
Take a moment to imagine yourself in a situation where you enjoy financial freedom. What would your dream life look like? Would you be flying in the Maldives or flying 4 sectors a day? Would you be supporting companies that help change the world long after you are gone?
It’s important to be conscious about it as most people are so caught up in this rat race called society, that they have never really thought about it for more than a second.
So let’s say your absolute dream life consists mainly of flying planes. What would happen if, for whatever reason you can’t do that anymore?
When the economy is taking a hit, owners of business jets are the first to sell their aircraft. The pilots flying on those jets will lose their jobs overnight. The same can count for airlines with too many pilots. Look at the situation we are in now, pilots that thought their jobs were secure now realize they never really were.
This situation might force them to move to the other side of the world in order to work and be able to pay their bills. Working on the other side of the world is great when it’s because you want to, but not when its because you have no other choice. Obviously this doesn’t apply for all pilots but if you do end up in a situation where you lose your income as a pilot, you would do well to have a solid backup!
Unfortunately, most pilots don’t have a back up and realize this when it’s too late. A solid backup is also a way to accelerate repayment of the pilot loan.
Enough said about why, let’s talk about how.
Nowadays there are more self made millionaires than ever! This is because we are living in an information age in which anyone with a laptop and an internet connection can achieve financial freedom. Most successful people on this planet have at least 5 different sources of income so the goal should always be to create multiple income streams.
Let’s discuss a couple of opportunities that I’ve come across during my career so far. That way you can learn some exciting possibilities, learn from my mistakes and become motivated to move your ass!
A side business enables you to become financially independent and it is something you can do alongside your aviation career!
There are a couple of things you should know so I’ve created some steps to get you started.
Step 1: Believe in yourself and be authentic. If you believe you can build a successful business, you will. But the opposite is also true.
Step 2: What is something you are extremely interested in, good at or like doing? Take a moment to really think about this. Let your mind run freely and write down all of your ideas in a mind map. This will create a clear overview of all of your opportunities.
For example, I like writing, I like creating and I like to help people like yourself about things that I’ve dealt with. I have experience with aviation so this is what I talk about.
Step 3: Now that you have a clear image of what you are good at or like doing, simply Google, ‘how to make money online’ and start expanding your horizon.
There are people who are not even half as smart as you are while they are still able to build a multi million dollar business. Motivation, perseverance, learning from mistakes and getting back up again is what made them succeed. If you do the same, it’s just a matter of time before financial freedom knocks on your door.
And remember, it’s ok to make mistakes. I made the mistake back in 2014 to start a YouTube Channel focused on make up. I thought it was going to be easy but I wasn’t motivated enough and thus never made a single make up related video.
However, it did spark an interest to create aviation videos later on. So you could say that it’s important to just start and see where it takes you.
Step 4: Take an idea from your mind map and think about what a possible side business would look like in your case.
Providing a service, focussed on social media, e-commerce or affiliate marketing. The options are endless.
Step 5: Build your business around it. Think about a name for your business, register the domain name & accounts on social media platforms and last but not least, create a website.
Remember, building a side business requires motivation, perseverance and long term dedication. Only then will you be able to build something that’s solid enough to serve as a backup.
Ideally you want to create something where your presence is not really needed in the long run. If you create a product or service that can be purchased online, it will sell, whether you are flying or enjoying your off days. But designing handcrafted jewelry or providing one on one coaching is far more time consuming, unless you hire people to do the tasks for you. So keep this in mind when you think about starting a side business yourself.
If you are able to launch a successful business you can always decide to sell it when you need some additional money to make ends meet. The skills and knowledge you’ve acquired to build your business can not be taken away from you which is why it’s one of the best investments of your life.
You sold your business today? Tomorrow you’re able to start a new one.
Now that we’ve talked about side businesses, there are other ways to create financial freedom. Investing in stocks and real estate for example.
I am investing in Exchange Traded Funds also known as ETF’s and I am planning to continue to do so on a monthly basis. It takes almost no effort which is why I consider it to be passive income which grows slowly over time due to compound interest.
It’s important to get rid of your debts before you start to invest though. Especially if the interest rate on your debt is high.
If creating a business and investing isn’t something you are interested in, you can always consider working part time as a pilot and taking on another job.
I’ve come across pilots that also work as a dentist or lawyer and some even drive a bus. They were all extremely happy with their jobs and loved the fact that they are able to combine them.
Besides the financial freedom, I definitely didn’t want to be in constant debt due to my pilot loan + interest which takes forever to repay.
Everyone thinks that as an airline pilot, it’s easy to pay back your pilot loan of 150.000,- euro. The truth is that most pilots spend 20 years to pay back that loan. A road I wasn’t willing to take.
My side business gave me the financial freedom I was looking for. Not the pilot job and you can do exactly the same or do even better.
Coming back to the question, what would you be doing if you had full financial freedom? If that is still flying planes, then great! But if for whatever reason you can’t do that anymore, then what else?
Are you currently running a side business? I’d love to hear more about it so make sure to leave a comment below!
I hope to have inspired you to take action and start a side hustle. Even if I just planted a little seed inside your head and you’ll start years and years later. Don’t let your future or financial independence depend on the company you work for. And remember, your health should always be your number one priority 😉
Losing an airline pilot job is never easy, wan’t to know more it? In that case you’ll want to check out this video.
All the best! – Michelle