Income Choices: Employment
There are three main ways in which people earn income:
1. Employment
2. Owning a Business
3. Real EstateThe first two will be discussed in the following two chapters.
Of these three, the most limiting, and the least flexible and with the least chance of creating a lifestyle is employment.
“Employee of the month is a good example of how somebody can be both a winner and a loser at the same time.” - Demetri Martin
You work for someone else and your income is limited by the hours you work, and in some cases, by the commissions you earn. If you take a year off, you receive nothing. Strangely “finding a job” is what we are told to do by our parents, our schools, our Technical Institutes and our Universities. We have not been taught to be entrepreneurs, business owners, real estate owners or developers. This is partly because the economy needs employees so businesses and state-owned enterprises can succeed. But most of the time being employed is not the road to your Perfect Lifestyle.This is not to say that for some people being employed is exceptionally beneficial. For example my wife Fleur is a nurse. There is no job she loves more than helping and nursing sick people. For her, working as a nurse is part of her Perfect Lifestyle. She is not interested in turning this passion into a business. She is not interested in owning a private hospital or a nursing employment agency. What she loves is actually being with patients and nursing them. You may be the same. What you really enjoy in a job may primarily only exist in an employee role. Once again it is about identifying your passions and what you really enjoy. If being an employee is what you really love, I encourage you to stay employed. At the same time, I would also encourage you to find ways to turn your passion into a separate income source or to develop a secondary income source. Even if being employed is something you love, your ideal lifestyle might mean only working four days a week, or never doing overtime, or having seven weeks annual vacation a year. Think about ways you can achieve these goals too. Remember you can often turn your work passion (in fact any passion) into a successful business. If you are being employed or you are training for employment, look for ways to start a business in that area.
I understand that business and real estate are not for everyone. They may not even be for most people. But if you want to create a fantastic lifestyle, it is unlikely you will succeed if you are only an employee. Fleur would be the first to agree that we wouldn’t have anywhere near our current lifestyle if we lived on her nursing salary, even if it was combined with a salary I could earn as an employee.
Working for someone else is not usually the road to freedom (and wealth if that is what you are interested in). However, it can be useful when you start out. But if you do start out working for someone else, remember these golden rules:
1. Search for a job that involves something you love or are passionate about. Try to ensure you will be working with great people who will challenge and stimulate you to grow.
2. Your job is a stepping stone, not a destination.
3. Be willing to change your employer regularly, every 18 months or so. This enables you to gravitate more and more towards your passion. It also forces you to grow and learn at a faster pace.
4. Always be on the lookout for opportunities and people who will help you move towards your life of freedom and your perfect career.
5. Learn as much as you can from everyone you can (including customers and suppliers and top management). In the 21st Century people who can understand and manage the multiple functions of an organization will be very well rewarded - especially when it is your own organization.
6. Do not be influenced by the income. As long as you can afford to live, it should not come in to the equation.