On 31 March 2026, approximately 12,000 Oracle employees in India received an email stating that their roles had been eliminated as part of the organisational restructuring. The layoffs in India were part of a broader restructuring at the global level affecting up to 30,000 employees. For many of these employees, whose salary income was the major or the only source of income, the layoff came as a rude shock. If you are dependent on a single source of income, this article will give you insight into how to create multiple sources of income.
Why should you have multiple sources of income?
The Oracle employees in India who were laid off received an email at 6:00 AM informing them that their access to company systems was revoked immediately. There was no prior discussion, no prior communication, no notice period, just direct end of employment!
With their jobs gone and their only source of income gone, many of these employees must be wondering how they will manage their expenses. If there is no emergency fund, how do they pay for regular day-to-day expenses, children’s school fees, outstanding credit card bills, loan EMIs, rent, utility bills, medical expenses, etc.? These kinds of situations highlight the importance of an emergency fund and having multiple sources of income.
In such a scenario, any supplementary sources of income come in handy. Otherwise, in the absence of an emergency fund, the individual may have to dip into their savings and investments. In the worst-case scenario, the individual may have to borrow money from family or friends, take costly personal loans or rely on credit cards. Hence, having multiple sources of income is important.
Some limitations of relying on a single source of income include the risk of job layoff, delays in receiving salary, a salary cut (as many people experienced during the COVID pandemic), etc. During periods of high inflation, if the annual salary hike is low, it can disrupt the monthly budget and constrain lifestyle upgrades. The lack of financial resources due to insufficient salary can hinder investments towards financial goals. A sudden medical emergency or personal financial crisis can push one into debt.
How to cushion impact of job loss?
As a first step, an individual must build and maintain an emergency fund. If someone loses a job overnight, it may take time to find another suitable job. During such times, an individual can fall back on their emergency fund.
An emergency fund may have money equivalent to 3 to 12 months of expenses. If the individual’s financial position is strong and they are working in a stable company with a stable income, the emergency fund can have 3 to 6 months of expenses. If your financial position is weak (you have too many loans), your job is unstable, or the company’s financial position is weak, the emergency fund can have 6 to 12 months of expenses.
In the event of a job loss, the individual can use the emergency fund to cover regular monthly expenses. With an emergency fund in place, the individual can relax and take their time evaluating available jobs, choosing the one that suits their needs and aligns with their skills, job profile, and salary expectations. In the absence of an emergency fund, the individual may be constrained to take the first available job opportunity, which may or may not be the most suitable option.
Do you have an emergency fund? If yes, evaluate whether the funds maintained in it are adequate. If you don’t have an emergency fund, you start building it immediately. Once you have built it, evaluate it regularly to ensure it has adequate funds. During times of emergency, whenever you use funds from it, replenish it once the situation improves.
How to create multiple sources of income?
Creating multiple sources of income frees an individual from depending only on salary income. Some sources of multiple income to consider include the following.
- Monthly interest income from fixed-income instruments
- Quarterly distribution income from REITs and InvITs
- Investing in good companies that give quarterly dividends
- Alternate investments like P2P lending, etc., that can give monthly cash flows
- Taking freelance assignments
Monthly interest income
When investing in fixed-income instruments, you can opt for the monthly interest payment option. These include bank fixed deposits, bonds, the Post Office Monthly Income Scheme, etc. The interest income is taxed at the individual’s slab rate. So, monthly interest may not be tax-efficient, but it can come in handy during times of need to supplement a single source of income.
Quarterly distribution from REITs and InvITs
An investor can consider investing in Real Estate Investment Trusts (REITs) and/or Infrastructure Investment Trusts (InvITs). As per SEBI Regulations, they have to invest at least 80% of their funds in income-generating assets and distribute at least 90% of their net distributable cash flows. They make quarterly distributions (commonly referred to as dividends). Thus, REITs and/or InvITs can be considered for quarterly income.
Some examples of REITs listed on stock exchanges include Nexus Select Trust, Embassy Office Park REIT, Mindspace Business Parks REIT, etc. Some examples of stock exchange-listed InvITs include IndiGrid Infrastructure Trust, Powergrid Infrastructure Trust, etc. Please note that these are examples and not investment recommendations. For any investment recommendation, you must consult your financial advisor.
Quarterly dividend income
While most dividend-paying companies pay dividends half-yearly or annually, some declare them quarterly. Some examples of these include TCS, HCL Tech, CAMS, etc. Please note that these are examples and not investment recommendations. For any investment recommendation, you must consult your financial advisor.
While some companies pay a quarterly dividend, the dividend per share may vary and depends on the company’s financial performance. In a good financial year, the company may increase the dividend per share, while in a bad quarter, it may skip the dividend altogether.
Alternative investments
In the last few years, alternative investment products have emerged. For example, through a P2P lending platform, you can give loans to borrowers. You earn a monthly EMI paid by the borrower. The EMI has the principal repayment and interest component. Loans run the risk of delayed EMI payments. There is also the risk of defaults, which could result in the loan becoming a non-performing asset (NPA) and in the loss of the outstanding loan amount and interest on it.
Freelance projects
An individual can consider taking freelance projects in their areas of expertise. These can include content writing, training, consultations, etc. Please check with your organisation if such assignments require the company’s approval.
Multiple income sources can help you pursue your passion
You can take freelance projects in your area of interest, which may not necessarily be the same as your profession. Thus, with freelance projects, you can pursue your passion while making additional income from it. Over a period of time, as income contributions from such projects and other sources increase, an individual can consider making it a full-time activity at the appropriate time. Multiple income sources reduce financial strain. They generate additional cash flows that can be directed toward investing to achieve financial goals and eventually financial freedom.
Gopal Gidwani is a freelance personal finance content writer with 15+ years of experience. He can be reached at LinkedIn.
