On the cash front, in addition to the importance of having reserves, I'd suggest that the importance of having multiple revenue streams has never been clearer.
During the last recession, I was a full time software engineer, a part time fitness instructor/personal trainer and had real estate holdings.
Guess how my alternate income streams worked out when no one was spending money? I sold off all of my rental real estate (in an area that still hasn’t recovered), I stopped trying to get personal fitness classes and scaled back teaching to just a “working hobby” and doubled down in software engineering, building skills and a network.
When the company I worked for finally did collapse in late 2010, I was able to get a couple of contracts until I found a full time gig.
This is true. A couple on my block are an architect, and a yoga instructor. Two very diverse income streams.
Now both are unemployed.
A guy I sold a web site to was one of those people who was big on diversity of income.
His portfolio covered everything from hotel services to restaurants to antiques restoration to a couple of small factories. All are closed. His diverse income is gone.
In software engineering, you don’t need “multiple income streams” to stay solvent. You just need a set of skills that are in sync with the market, good interviewing techniques, a strong network, and cash to tide you over and keep your expenses reasonable. This time is not a recession. It’s a true worldwide epidemic. But during “normal” recessions, if you have what I outlined above, someone somewhere will hire you at least as a contractor at some rate.
Of course if you overly specialized it might be harder.
The dot com bust wasn’t that bad if you were just a regular old enterprise developer working at a profitable company that wasn’t directly or indirectly dependent on VC money. Even in 2008, there were companies hiring hired gun contractors at lower rates.
I'd say that even more important is picking the right employer. The next time you apply for a job, ask what the company did during the virus. If it didn't take care of its employees during COVID, it's not going to suddenly be a good company now.
If the company didn't exist during COVID, I think it's perfectly legitimate to ask what the leaders were doing during COVID and how they treated their people at those companies.
I haven’t seen any evidence that the company I work for isn’t ethical or as employee focus as they can be. But things happen, management changes, companies get acquired, the market changes etc.
Good for you. That is not the reality faced by tens of millions of Americans, and billions of people worldwide.
Reality lies in between I think. Most folks need some security, but don't have it?
But “billions of people” worldwide don’t have the luxury of multiple job openings where they can be picky about their employer.