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26 April, 2019

Living Paycheck To Paycheck

There is nothing wrong in getting a job, you need an income to sustain your living initially and temporary. However, don't hook on it for long term. Once your passive income surpass your job income, you can think of quitting to have more freedom and do where your passion is. We were "brainwashed" since young, in getting good grades, then get enable you to get good JOB to have high income. Then we can retired later with a well to do life. Seriously, is that the way to it and be slaved to it for your whole entire life and lose your direction?

It's time to wake up. In the video, Dan gave 5 tips :

1) Job Security is an illusion
Does it mean that if you worked for government job, big companies, etc. you are secured? You assumed that if a person worked his whole life smooth sailing would be safe? In this competitive edge, anything can happen, nobody can predict the future. What if the company go bankrupt, government change in political stand, you will still have a high chance of being layoff and throw into the street anytime even though you have work hard in you years to stick around, correct? When you are old, the less chance people will re-hire you. Think about it.

2) Work to learn, don't just work to earn
Don't be penny wise, pound foolish. Don't just pick a job after graduate that pays you a few dollars more. Don't be short-sighted. Pick an industry that you are interested in. Who you work for is way more important than what you do. Work to acquire your skill set, work to gain your knowledge. Work to be better, when you transition out to be on your own, nobody can take it from you.

3) Think of your job as temporary, not permanent
Leverage what you've learnt. Use that as a stepping stone to raise to the next level, to grow. Don't think it as permanent.

4) Put money aside as you earn more money
Parkinson's Law : "No matter how much money people earn, they tend to spend the entire amount and a little more." So,  as your income grow, your living expenses grow in relatively. Then what happen when you are laid off or lost that job? You lose your lifestyle which is why most salaried workers living in fear. They practically living paycheck to paycheck, so put some money aside to cushion it and serve as backup.

5) Create your own job security
It gives you financial confidence. This means that you don't depend on the government, economy, job, managers or boss, not even depending on your investment. You depend entirely on your own skill set to bring in money.

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