Faced with the current economic uncertainty many Americans are seeking a solution to the retirement puzzle. Unfortunately many have given up on the dream of achieving financial freedom. Many have good jobs with an employer pension and are placing most of their economic eggs in one basket. I’ve talked to many people with a government pension who are making grand plans of quitting soon and relying on a source of cash flow promised them from their many years of public service. Then just a few are able to create a real nest egg in a private IRA pension plan.
The truth; a performance (evolved) economy is developing
The economy of today is entirely different than it was even 5 years ago and it’s still evolving. Here are several reasons it is changing and how it may effect you.
First, goods and services will be brought to the consumer via a smart phone. The need for brick and mortar store fronts will be a thing of the past. Instead of driving to a store you’ll browse the store shelves via your phone, place an order and it will be delivered to you. If you work in a traditional brick and mortar establishment you may be a target of a future lay off. Look around at all the vacancies in strip malls. Plus all over the country hardly any new commercial store fronts are being built.
Second, I believe that government regulations placed upon business in an effort to protect employees is having the direct opposite affect. Here’s why. An entrepreneur has invested their entire fortune including their blood, sweat and tears into their business and they will do anything to protect that. Anything. More government regulation equals more risk and uncertainty for the employer/entrepreneur and that will cause them to either remove it, spread it around or transfer it somewhere else. This is where employees get hurt.
The employer/entrepreneurs are beginning to shift compensation risk from them to their employees and are creating performance based packages that keeps their bottom line percentages the same regardless of sales volume. That means you work harder for less. If you don’t make a sales quota, tough luck Charlie Brown on earning more. Chalk one up for the unintended consequences of a government that is out to protect you. Sad thing for you and good thing for your employers is that they won’t even have to lay you off and pay unemployment because if sales decrease you’ll quit because you can’t perform any higher to earn more.
We see the unions that were created to protect the workers are losing membership as a result of this economic shift and there is nothing they can do to stop it. There is such a large supply of workers now compared to available jobs that employers no longer have to seek skilled workers from a union pool. They can just go to the pool of unemployed non-union workers to fill it.
Third, technology is also reducing skill requirements of traditional service jobs which creates a larger labor pool due to lay offs. Thus the demand for that labor is less and that spells less jobs that pay even less wages.
Forth, I really believe that people who have worked in government and have been promised a big fat pension will be surprised when governments can’t afford to pay them. Just look at what is happening in Europe. Eventually a government can only spend what it receives in taxes and when it can’t continue to service it’s debt any longer, pensions will be the first to go. Pay attention to how many state pensions are now underfunded.
That’s the doom and gloom. You have to know the truth in order to prepare and be motivated to make changes.
Since the economy is changing, the only way to continue in a traditional 9 to 5 job and achieve financial freedom is to take advantage of the new economy and how it produces profit. For many it will be hard to learn new ways and new skills because change is difficult. The good news is learning new skills will be easier than not having enough money to live at a decent standard of living because your retirement next eggs will fall short and the meager poverty level government social security check will not be enough to make up the short fall.
Here’s a solution.
Here are several ways to obtain financial freedom while working a 9 to 5 job:
- Save and invest wisely at least 10% of your income.
- Create a second (or third or more) source of income in the new evolved economy.
- Learn new ways and the skills necessary to succeed.
- Stay healthy so won’t need to use your future assets to pay for health care.
I want to just address items 2 and 3. I believe items 1 and 4 are self explanatory.
Create a second (or more) source of income in the evolved economy
While working a full time 9 to 5 job now, bringing in enough cash flow for basic needs, you begin to work part time in the new performance (evolved) economy. (Learn more about the evolved economy.) It’s entirely possible that in 3-5 years, being committed to working diligently part time, you’ll be earning enough profit in your evolved economy business that would equal or exceed the wages from your 9 to 5 job and then you’d be able to decide, if you wanted, to continue your 9-5 job or quit. Some continue to work but most don’t and quit.
Listen to this brief video on the evolved economy.
What new skills will you need in the performance economy
Below are a list of skills you’ll need to master to excel in the new performance economy.
The new performance evolved economy will demand consultants, giving potential customers and distributors education and understanding (selling will be a thing of the past and rightfully so because of the ability to gain solid unbiased information over a smart phone) so they can make an informed choice.
Seven skills needed to excel in the evolved economy:
- Being able to find prospects.
- Inviting your prospects to look at your product or opportunity.
- Presenting your product or opportunity to your prospects.
- Following up with your prospects. This is one of the most important skills of the seven listed here.
- Helping your prospect become customers or distributors.
- Helping your new distributor get started right.
- Promoting events that your customers or distributors attend.
It’s beyond the scope of this article to go into detail with these seven skills. They are not hard to master but take diligence in learning them. The good news is that most people entering the evolved economy are not willing to learn these skills and those that do, will excel. For those unwilling to learn these seven skills, any venture into the evolved economy may spell disaster.