“The trouble with being in a rat race is that even if you win the race, you’re still a rat.” ― Lily Tomlin
According to a 2018 Gallup poll study found that, at all levels, nearly 25 percent of employees feel burned out at work very often if not always.
The reasons cited for burnout:
- Financial Insecurity
- Time poverty
- Stalled Progress Toward Personal Priorities
If you’re reading this digest it’s most likely because you’ve solved your money problems, but still feel insecure financially and certainly want to solve your time problems.
No one who starts a land business is ever just in it for more money. They want the passive income to buy them more time.
Nevertheless, I’ve been thinking a lot about financial insecurity lately and how our culture feeds it.
The first issue is the idea of saving money and then investing those savings in the stock market. If you own stocks you may feel wealthy one day and poor the next due to variables completely out of your control. Owning stocks if you’re not an insider in the actual company is a recipe for constantly feeling financially insecure.
The second issue is flipping assets for cash. If you’re selling any asset for cash there’s constant financial insecurity. I know because I did this for years. There’s market insecurity, inventory insecurity and not being tax efficient as well. When you’re flipping assets for cash it’s impossible to create any financial projections as you start over each time you sell that asset. It feels great, but then you have to go out and secure another asset at a great price (you think depending on the market) and find another buyer.
In a hot market, just like the stock market, you get that same market high, but as soon as that market inevitably turns you’re back to scrambling for something else to make as much cash. Plus, most people adapt to that cash flip lifestyle, don’t save appropriately for the inevitable market dips, and are back on the financial insecurity treadmill of life.
The only antidote I know to solving financial insecurity and time poverty is buying stable cash-flowing assets. Whether, it’s real estate, a software business with subscriptions or just buying notes at a discount. You have the cash flow you can project, discount, model out, etc., and go to bed knowing you have acquired enough cash flowing assets that even in a huge dip your monthly expenses are covered.
Do you disagree? Let me know why.
“The moment you make passive income and portfolio income a part of your life, your life will change. Those words will become flesh.” – Robert Kiyosaki