The Key to Create Your Own Job Security
Today we all need to be concerned with more than just job security. We also have to focus on our long-term financial security and not leave that responsibility to a company or the government.
With an aging population combined with massive corporate layoffs, people are beginning to realize that job security is a myth, and their 401(k)s and other retirement plans may not provide long-term financial security. The trend toward small-business creation will increase exponentially. Many mid-level managers are becoming self-employed consultants when their efforts to seek reemployment are unsuccessful.
We all need to become wiser investors, always aware of the ups and downs of the financial markets. I recommend learning to be an investor rather than giving your money to somebody else to invest for you. If you simply turn your money over to a mutual fund or an advisor, you may have to wait until you’re 65 to find out if that person did a good job.
If they did a lousy job, you may have to work for the rest of your life. Millions of people will have to do just that.
But it’s not too late to change that…
Why People Seek Job Security
The primary reason many people seek job security is that it’s what they’re taught to seek, both at school and home.
As adults, millions of people continue to follow that advice. Many of us are conditioned from our earliest days to think about job security, rather than financial security or financial freedom. And because most of us learn little to nothing about money at home or school, it’s only natural that we cling ever more tightly to the idea of job security instead of reaching for freedom.
The main reason that 90% of the population is working as employees or self-employed contractors is that it’s the side they learned about at school.
After leaving school, they often end up with lots of expenses and may fall into debt. This means they must cling ever tighter to a job, or professional security, just to pay the bills.
Take a Risk
People who take risks change the world. Few people ever get rich without taking risks. Too many people have come to depend on the government to eliminate the risks of life.
The beginning of the Information Age should have ushered in an era of smaller government because big government is frankly too expensive to maintain.
But rather than becoming savvy, educated investors, millions of people around the world have bought into the archaic idea of entitlements and pensions for life. This simply isn’t feasible. The Information Age means we all need to become more self-sufficient, grow up and take personal responsibility for our retirement.
The idea of “study hard and find a safe, secure job” is an idea born in the Industrial Age. We’re not in that age anymore. The times are changing. The problem is that many people’s ideas have not changed. They still think they’re entitled to something. They continue to think that the government, big business, a labor union, their mutual funds, or their family will take care of them when their working days are over.
For their sake, I hope they’re right.
But regardless of what you decide, please remember this: Financial freedom might be free, but it doesn’t come cheap. Freedom has a price, and to me, it’s worth that price. The big secret is this: It takes neither money to be financially free, nor a good formal education. It also doesn’t have to be risky.
Instead, freedom’s price is measured in dreams, desire, and the ability to overcome disappointments that occur along the way. Are you willing to pay the price?
To become more financially secure, I suggest that individuals become educated in business creation (B) and investing (I) while still maintaining income as an employee (E) or a self-employed (S) contractor.
If you’re not familiar, those are the four quadrants of my CASHFLOW model.
By having confidence in your abilities on both sides of the CASHFLOW Quadrant, they’ll naturally feel more secure, even if they have only a little money. Knowledge is power, and when an opportunity presents itself, they will be prepared to act with confidence.
Entrepreneurship offers virtually unlimited income potential because you can drum up more business if you need more money.
You also set your prices, which means you can charge what your time and expertise are worth in the market.
Once your business is booming, you can choose which clients you want to work with and avoid the ones who are difficult or don’t pay you on time — you’ll never again be in a position where you have to endure something that frustrates you because you control the direction of your business.
Plus, you’ll be extra motivated to succeed because you’re working on projects you enjoy, setting your schedule that works for your lifestyle, and bringing value to every client you work with. It’s incredibly satisfying knowing that you’ve created your job security and that you’re making a difference in your clients’ lives.
How to Create Your Own Job Security
The way I learned to become a B was by being an apprentice to my rich dad. His son and I were both E’s learning to be B’s. And that is the way many people learn. It’s called on-the-job training.
This is the way many closely-held family empires are passed on from one generation to the next.
The problem is that not too many people are privileged or lucky enough to learn the behind-the-scenes aspects of becoming a B. Most corporate management-training programs are just that — the company only trains you to be a manager. Few teach what it takes to be a B.
Often people get stuck in the S quadrant on their journey to the B quadrant. This happens primarily because they don’t develop a strong enough system and end up becoming an integral part of the system.
Successful B’s develop a system that will run without their involvement.
If you can master that step, the sky’s the limit.
Play it smart,
Editor, Rich Dad Poor Dad Daily