Start Up School lesson #1: It doesn’t have to be like this
At end of last year, Corus, Europe’s second largest steel manufacturer announced the ‘mothballing’ of plants in the North East of England with the loss of 1700 jobs in areas with already high unemployment.
Realistically many of these people will never work again due to difficulty in finding alternative jobs, skills and age.
Imagine the 1700 conversations that took place when the workers learned of their fate about whether they could afford to live in their house, whether they could afford to keep the car or whether they could afford to go on holiday this year.
It’s a very sad situation.
The truth of the matter is though that it was due to no fault of the workers, and no fault of the Corus really. The axe fell after a consortium made up of Marcegaglia of Italy, Dongkuk Steel of South Korea, Duferco Participations of Switzerland, and Alvory of Argentina decided unilaterally in April 2009 to terminate a 10-year contract signed in late 2004 to buy 78pc of the production of the businesses.
In jobs today, we basically depend on everyone else not to mess things up. As businesses outsource the stuff they aren’t good at we become more and more dependant on others.
We depend on the boss to give us our next rise. We depend on the marketing department to do a good job promoting our stuff and the Sales Teams to sell the stuff. We rely on the suppliers to deliver on time, what we ordered and of good quality. We rely on the people who run the business to act in a responsible way and not to commit fraud or act financially irresponsibly and we rely on customers to stay solvent long enough to pay for the stuff they ordered. Most of all we rely on the competiton not to develop a better product for less money.
But, it doesn’t stop there. There was a time where we could rely on the money that we had saved in our company pensions or the investments we had made in stocks and shares. But, how many people have seen their savings and investments disappear over recent years with recession and are now forced to abandon plans for early retirement?
We have got stuck on the treadmill of life
It wasn’t always like this
In years gone by we grew our own vegetables, we reared our own chickens and sold what we didn’t need ourselves at the side of the road. Somewhere along the way we stopped doing this because we got jobs in the local factory and some who had saved enough went to college and university and ended up working in offices.
Because we had jobs we were rich.
Then we bought the TV, the car and went on holiday twice a year and instead of being self sufficient, we spent more than we could afford and ran up debts.
We run faster on the treadmill.
To earn more money, get promoted and buy more stuff. We’re stuck on the treadmill and have to run faster to keep going. But then suddenly the treadmill stops. The supplier stopped supplying quality materials, the competition made more competitive products, the customer hit financial difficulties and suddenly we are being laid off.
Then suddenly we are having to make choices. Pay the electricity or pay the rent. Walk instead of drive. Maybe you make do with the old car a little longer.
The Rich On The Other Hand, Avoid the Treadmill
The rich diversify their income streams so that the economic downturns don’t hurt them. The treadmill dramas barely effect them.
But when our paychecks barely covers our expenses let alone giving us enough left over to build a diversified portfolio. But if you had any spare money would you invest it all in one company’s shares? Would you bet it all on one horse?
Would you sink it all into something you don’t understand, has no guarantees and you have to wait 5 years for an outcome, to which you have no control?
No? So why do you do this with your family’s income!
If you find yourself on a treadmill that’s stopped and you can’t find a job, you’re going to have to reinvent yourself, but when everyone else is trying to do the same thing it’s virtually impossible.
But just imagine if you’d found a few hours each week, when you weren’t on the treadmill to diversify your sources of income? Maybe you were good at Do It Yourself and earned a few extra £’s / $’s each month repairing other peoples houses.
Perhaps your other half found time to write a blog or promote affiliate products and over time they provided useful 2nd and 3rd incomes. Suddenly the picture starts to look a little bit different.
Now when you hear rumours that the treadmill at the factory is slowing and your friends are starting to worry, you don’t need to worry so much. You now have options.
You have choices.
You have leverage.
You have security and you have freedom.
All because you turned off the reruns of NCIS and CIS and started looking at diversifying your income.
You would be following the path of the rich and diversifying your income. You don’t need to have office space or new computers or fancy desks and chairs.
Over the next few weeks we’re going to show you how you take financial responsibility and start diversifying your income.
Whether you’re a single person, a factory worker, a cubicle warrior, a business owner, or someone just looking to pay off their credit cards, there is time to take control
Over the next few weeks we’ll look at how you can start to take control of your life, right now all for free.