Employees are losers (and what we can do about it)
The reality is that employees are now more at risk than ever before. There is growing list of challenges they face where job security is a thing of the past.
One key response is for employees to mind their own business. They become entrepreneurs on a part-time basis whilst still in full-time employment with an employer.
Reasons why employees must take control over their financial independence
There are 21 reasons why employees must take control over their financial independence and be the pilot of their life.
- Jobs are being automated by machines and today’s jobs will no longer exist tomorrow.
- We will struggle with part-time employment as full-time employment is decreasing.
- Employees are discriminated even before they start their job due to automated application screening.
- Graduates will find it hard to get their first full-time job after graduating.
- New starters will fail within 18 months of starting a new job.
- Employees don’t have real or relevant work skills required for today’s work.
- People are not working in the field of their qualification or study.
- Employees are discriminated against in workplaces in many ways.
- People are subjected to the indignities of the performance management system.
- Employees’ jobs and careers have ‘use-by’ dates which limit the climb up the corporate ladder.
- Workers carry the burden of paying tax for Governments.
- Employees become liabilities to Governments when they do not work.
- Graduates are already in debt even before they start work because of their study loan.
- Employees get into the Rat Race of Life to pay off increasing debts.
- We are financially stressed and they worry constantly about finances.
- Employees are not earning enough to make ends meet.
- We are unhappy, disengaged and bullied at work.
- Employees are working long hours and are pressured to do so by their employers.
- Most people do not have enough money to retire on.
- Employees will keep working into their 70s and Governments will facilitate this.
- Our investments are not returning as much as before.
Being aware that these challenges will help employees formulate the appropriate responses and to prepare them for financial freedom and independence when they get older and into retirement.
That’s if they have consciously made the decision to change their mindset and take action now.
Reframe mindset for success
One key response is for employees to mind their own business and become entrepreneurs on a part-time basis whilst still in full-time employment with an employer.
An entrepreneur is a person who sets up a business or businesses to take on financial risks in the hope of making a profit in the future.
They may not be paid now for their efforts and this is the entrepreneurs’ mindset when compared with the employees’ mindset where they want to be paid now for their efforts.
It’s important to note that each person has gifts and skills that could enrich others. In doing so, they could also earn some money at the same time. The monetization of individual skills will greatly benefit employees, especially in their latter years.
Unfortunately, entrepreneurship is not for everyone because of individual risk profiles, personal strengths and preferences, and level of financial literacy and capability.
As a part-time entrepreneur, the appropriate response for an employee is to acquire or develop ‘assets’ well before retirement. These ‘assets’ (or businesses) put money into the employees’ pockets and they include business systems (e.g., online blogs and eCommerce) and investments (e.g., real estate, shares, commodities, gold, and websites).
Specifically, apart from asking their employers for a pay raise or switching to a higher paying job to earn an active income today’s weak job market, the options available to employees to generate passive income for themselves are as follows:
- Start an online blog, Facebook group etc. that monetises revenues from advertisements, affiliate marketing, and selling services and products.
- Start an eCommerce site that sells services and products or use existing platforms like eBay, Amazon or Shopify.
- Invest in real estate or properties [For more information on how to buy properties in Australia, go to com.au]
- Buy shares (equities), commodities and gold.
- Invest in websites or virtual real estate that is making money.
- Participate in a network marketing system.
- Start a home-based business selling products and services, including participating in Uber, Airbnb, Fiverr, UpWork, Freelancer, Airtasker, etc.
The beauty part of doing entrepreneurship part-time whilst in full-time employment is that when employees do retire, they can still continue to keep their minds engaged. They can generate passive income for themselves by managing businesses and investments that they had already acquired or started as an employee years before.
Employees must check for potential conflict of interest issues with their current employer including terms of employment.
These businesses and investments are also ‘insurance policies’ for employees. This is so when they cannot work for whatever reasons due to illness, injuries, retrenchment, disability, or simply being an older person (the reality of life!).
Complacency will not get employees anywhere
Interestingly in Australia, the top five aspirations and dreams are to have:
- full financial freedom and independence (59%)
- lifestyle of choice (58%)
- pursue interests and hobbies (50%)
- free up time and spend it with those they love (43%)
- have a family (19%). (Financial Planning Association of Australia, 2016)
If you just want to be an employee all your life and not become a part-time investor or business owner, then financial independence will only be a dream.
Unfortunately, it’s getting riskier by the day for employees. There is less control over their jobs than ever before. Complacency will not get employees anywhere.
It’s without a doubt that the journey to financial freedom and independence will take significant mindset change, hard work, commitment, and sacrifices.