I’ve run across many people that seem to think that having a job is the best way to create financial stability. I’m aware that it’s a common idea, but it always floors me when I hear it. Owning a business and having passive income are much better ways to create financial stability for you, your family, and your community.
Let’s look at the idea that your job is a stable source of income. Ha! Your job is not as stable as you might think. We all know people that have been laid off for no reason other than it was best for the company’s bottom line. You will be hired or fired based on the needs of the company. Your employment, from the business’ perspective, has nothing to do with your needs.
What about the idea that having a job brings in “good” money? A job provides x amount of money for y amount of time. Usually you’re trading your time for a specific amount of money without understanding the affect our specific work has on the company’s overall bottom line. Businesses are in business to make money, so it makes sense that whatever amount you are being paid is obviously much less than that work is actually valued at.
A job is a critical piece for most people, but not because of the reasons that most people think. A job provides income for you to leverage to build wealth. You should be squirreling away money to purchase real estate, a passive income business (think cash cows like fast food restaurants, chain hotels, or laundry mats), or a home to live in. Your goal should be to create your own little passive income kingdom. Based on several reports in 2010, the average American family of four brings in about $50,000 per year. How difficult do you think it would be to replace that income with passive income?
It will take time to build your kingdom, and it will definitely take some hard work, but the rewards are worth it. What would you do with your time if you didn’t have to get up and spend forty hours per week at a job and another estimated five hours every week driving to and from work? Where would you go if you weren’t expected at your job every day?
All it takes is a shift in mindset to get you there. Start reading everything you can about your goals. Start saving money, even if it’s only $50 a paycheck, towards a down payment on …. something. Who can you network with to learn some applicable tips to help you reach your goals? Start now because you can’t expect a job to create financial stability in your life.
Shay Olivarria is the most dynamic financial education speaker working today and the author of three books on personal finance. Visit her at www.BiggerThanYourBlock.com.
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