If you want to achieve financial independence, you need a plan B.
Skills such as persistence, perseverance, money management and investment should be mastered. This is much better than your average Jane or Joe. One capability that may not be obvious at first glance, but is immediately apparent is resilience. The power to bounce back from adversity.
I know this is hard to swallow, but everyone experiences setbacks…and so do you.The human brain tends to oversimplify patterns, so positive trends are always upward. It is often assumed that Unfortunately it’s not, but that’s okay.
Knowing that things are going to go wrong at some point can give you a head start and prepare you mentally and financially for the inevitable. In this article, we’ll show you how to prepare yourself so that if you run into trouble on your journey, you can survive and exit unscathed.
Losing Your Job – A Nightmare Scenario
Like most people with 9 to 5 jobs, I took my salary for granted. I had a job that required special skills in computer design, so I felt essential to my employer. I didn’t always enjoy my job, but I thought the skills I brought were too valuable to give up.
The pay was pretty good and there were lots of graphs and charts predicting how my monthly savings and passive income would grow. It was great – the graphs all showed a nice steady upward trend towards the day when I was finally financially independent and never had to work again.
One day I was called into the manager’s office and told that he would let me go. My services were no longer needed.
The first reaction to bad news is overwhelming fear. I feel it in my stomach and chest – it’s her one of the worst feelings in the world. They feel hurt, betrayed, unwanted, and failed.
But the worst part is when you suddenly realize you haven’t been paid. Then things get really scary and your head is filled with disturbing thoughts.What do you do? ! How can I feed myself? your family? The bills never pay themselves! And above all, does that mean my dreams of financial independence are over?
First Line of Defense – Emergency Fund
As with all things in life, preparation pays off. You may think your job is perfectly safe, but you always need another plan if you don’t want to stray from the financial independence bandwagon.
The first line of defense I had was ( If you haven’t already, I recommend you do so, but it’s a very useful back-up fund. This will be a life saver if you need it. It’s probably the difference between “It’s no good!” This is going to end me! panic! ‘ and ‘Well, at least I have time to prepare something else’.
This is how I built it:
I spent a month trying to live on as little money as possible. It showed me how much I could spend if things didn’t work out overnight. Let’s be clear here. If your earning potential suddenly disappears, you’re better off cutting your spending significantly. Calculated his one-year cost of
ultra-low spending. In the months leading up to the
magic number, I spent far less than I earned.
The nice thing about this is that the minimum cost in contingency mode is significantly lower than the normal cost. In fact, this may be a lower number than you think (if you’re calculating based on your current spending). The only way to find out is to try!
Should I stay or should I go?
If you want to continue working in the same field you were laid off from, you need an up-to-date resume. In my experience, it’s much easier to write when you’re happy with your job than when you’re unemployed and really, really need one, as you are now.
Spend an hour about every six months (do this now, get your calendar and schedule this one-hour session with him) to organize your resume. Think about a skill you recently honed or a project you worked on that added prestige to your career. Remove old information and extra stuff that takes up valuable space.
Alternatively, getting fired can be the perfect time to step back, reassess your life and career, and decide to make a change. Generally, it takes about 10 years to become an expert at something. If your career has lasted this long, you may need to change jobs to learn new skills, get out of your comfort zone, and grow as a person.
Plan B Structure
Another way to alleviate unemployment is to create another source of income. You have eight sources of income and the world won’t end if you lose one! You’re probably diversifying your wealth and investments, so why not diversify your income as well? rice field. I started a small side business and was able to get some extra cash flow each month. It only took me about an hour after work Monday through Friday to get some pretty promising results. Here are eight online business models that actually work. Pick one and get started today.
One of the best ideas is to start a blog. You can express yourself about what you’re passionate about, reach thousands of people, and help them with your expertise. For example, if you already have a blog with loyal followers, you can work on it full-time and make money while you cover your expenses with an emergency fund.
The Road to Financial Independence is a Bumpy Road
The most important thing to understand here is that life is a bumpy road. Things always fail, but that doesn’t mean all is lost! Yes, it’s very disappointing to lose your job and see your savings rate go from 50% to zero. I feel like I’ve lost my step and I can never get it back. But nothing is far from the truth.
Sees adversity as part of the journey. To get to the good times, you have to get through the hard times. There is no straight and straight road. As with any stock market chart, there are always big drops that make people panic. But then they rise again and again – it will be good in the end.
The same applies to the path to financial independence. It’s never been an easy road, and there will be difficult times. There may be months when you don’t save at all, or you don’t save at all, or even periods when you have no income. We need to keep an eye on future prices and move forward.
Nothing can stop you from achieving your goals of achieving financial independence and living on your own terms when you set up an emergency fund and build other sources of income through a side business.
Thanks for reading!