The Wealthy Worker

There are so many posts out there about ‘How to Survive the Recession’. I find them so annoying. Here’s the reality: there’s nothing you can do if you haven’t been preparing for a rainy day.  Kissing up to the boss and working OT isn’t going to save you now.

Instead use any problems you’re having as a learning experience for next time. As I’ve mentioned a ton of times, aim to start contracting and get a high rate in a niche as I explain in my ebook. Make sure you are saving money - forget 10%, I aim for 75%. I only spent a few thousand per month and the rest is saved. It’s really that simple, but it’s not really possible as an employee. Even managers making $150K will have a hard time after all the tax deductions, and government programs (like EI and CPP in Canada).

Having savings and paying off debt does so many things, even ones that are intangible. Like giving you confidence to negotiate an hourly rate, reducing fear of losing your job and so on.

Tell yourself ‘Never again’ and start preparing for the next downturn. Because there will be one.

The other day a colleague I had worked with emailed me out of the blue. I hadn’t spoken with him since we worked together a few years ago. Turns out he was working out of town and wanted to return to Calgary. He asked me about a specific opportunity that he had heard about. Come to think of it, two different people contacted me around the same time about this opportunity, even though they hadn’t contacted me since we parted ways.

I helped them out as much as I could, but it reminded me that as employees or contractors, we need to keep in touch with our network on a regular basis, not just when we need something. Perhaps forward a bit of interesting news, a relevant opportunity or just say hello. In other words, make it a two-way relationship. Don’t always be taking and asking from others.

So if there’s anyone you haven’t talked to in a while, drop them a line for no real reason at all!

It seems that many people are against the US bailout plan. I agree with them. Why should we help companies that made bad decisions? If you agree with that, you must also agree with ‘Why should we help people who made bad decisions?’. Most people spend more than they earn, relying on credit cards, lines of credit, equity loans and so on. Now that things have slowed down, some of them are screwed. Many people are hoping the government will bail them out, provide jobs, and so on. No one owes you a job so get over it - make your own success happen.

If you’ve learned anything from this blog, it’s that I try to empower the individual. This means saving most of the money you earn, living below your means, and avoid shopping as much as possible. This savings empowers you because you don’t need to have a job, you choose to have a job (or not). Over the past few months I’ve been at home without any income. I haven’t been worried even in the slightest.

Now is not the time to panic and worry. If you haven’t been following my guidelines you may be feeling some pain right now. That’s okay, you’ve hopefully learned your lesson. To prepare for the next downturn (and there will be one) you need to do the following:

• make more money (see my previous blog posts and e-book)
• save more money
• spend less money

It’s really that simple. I got tired of getting an employee’s salary, with all sort of deductions. I could barely save any money. So I found a niche, started contracting and most of the money stays in the corporation. I pay low taxes in my company and personally since I pay myself dividends. I suggest you do the same.