Is There Really Job Security?
Why employees and the self-employed are most at risk
Most of us have the potential to be successful whether we're an employee, self-employed, a business owner, or an investor. It all depends on how determined we are. As my rich dad said, "Passion builds businesses. Fear does not."
The problem with moving from an employee or self-employed to a business owner or investor,as I wrote about last week, is often found in patterns formed through conditioning. Many of us come from families where the emotion of fear was used as a prime motivator to get us to think and act in a certain way.
For example: "Did you do your homework? If you don't, you'll flunk out of school and all your friends will laugh at you." "If you keep making faces, your face will get stuck like that." And the classic, "If you don't get good grades, you won't get a good job with benefits."
Well, today many people have gotten good grades, but there are fewer and fewer safe, secure jobs, and even fewer with benefits like pensions. Many people, even those with good grades, need to "mind their own business" and not just look for a job where they will mind someone else's business.
The risky side
I still have some friends who seek security as employees or self-employed, the left side of the CASHFLOW Quadrant. I believe that side of the quadrant is actually the riskiest side. If people could see what I see when I travel the world, they would not be looking for more security. Security is a myth. The trajectory for employees’ incomes is not good. And when there are bad economic times, it's the employees who lose their job, not the business owners. Learn something new, and take on this brave new world. Don't hide from it.
It's also risky for the self-employed. If they get sick or injured, their income is directly impacted. As I get older, I meet more self-employed people my age who are physically, mentally, and emotionally burned out from hard work. The more fatigue a person endures, the less secure they become, and the risk of having an accident also goes up.
As the march of technology continues at an ever-increasing pace, employees and the self-employed have to constantly be trained to keep up and stay relevant in the job market. My thoughts have been, if you're going to reeducate anyway, why not spend some time educating yourself on the skills needed to become a business owner or investor—the right side of the CASHFLOW Quadrant.
The secure side
The irony is that life on the right side of the Quadrant, the one viewed by most people as more risky, is actually more secure. For example, if you have a secure system that produces more and more money with less and less work, then you really don't need a job or need to worry about losing your job. To make more money, you simply expand the system and hire more people. That gives you the opportunity to expand your means so that you can enjoy all that life has to offer.
People who are high-level investors aren't concerned about the market going up or down because their knowledge allows them to make money in either situation. If there are market crashes for the foreseeable future, which I believe there will be, many baby boomers will panic and lose much of the money they had for retirement. If that happens in their old age, instead of retiring, they'll have to work for as long as they can. How is that security?
Professional investors are people who risk little of their own money and yet still make the highest returns. The people who know little about investing take the risks and earn the least return. From my point of view, all the risk is on the left side of the CASHFLOW Quadrant.
If you want to learn how to move from the left side of the CASHFLOW Quadrant to right side, today is the day to start. Increase your financial education, expand your mindset, and see the opportunities before you. Start investing in your financial security today.