Job Security vs. Independence, Yakezie Round Up, Uncommon Money News
| August 31, 2010 | Posted by Roshawn Watson under Uncategorized |
By: Roshawn Watson
Study hard, get good grades, and get a nice secure job is the mantra that’s continually reiterated as the “right path.” This is what we are taught to aspire to from our youth. There is certainly nothing inherently wrong with job security in that we should all strive to be indispensable regardless of employment status. However, I believe our emphasis is misplaced. All to often, we will focus more on job security than financial independence.
It is so easy to become trapped by the need of job security because most people are one of two paychecks away from financial ruin. Indeed, a whopping 61% of Americans live paycheck to paycheck. People are so conditioned to being trapped that they no longer understand what freedom even tastes like. Felix Dennis, one of the richest men in the U.K., referred to to this conditioning. He wrote receiving a regular paycheck is similar to using crack cocaine. Are you addicted to your paycheck? Of course, the primary reason so many people are at the financial brink is debt: student loans, car loans, and credit cards. Sure there will always be ways to rationalize how they got into the mess, but we can concern ourselves with that at another time.What is important is that their debt restricts their choices, hence they are trapped and financially needy. Personally, I feel debt is the ultimately form of arrogance. In taking on debt, one makes arrogant assumptions about his future financial solvency. However, life happens. Sickness, a missed bonus, or a job loss could quickly push a whopping 61% of American over the proverbial financial cliff. With globalization, one’s job loss could easily not be his fault…just business.
Consider some key points about debt-freedom.
- Debt-freedom gives you choices. I believe this liberation enriches your soul in ways that are indescribable.
- Debt-freedom is hardly a panacea. There are problems no matter whether you have debt or not.
- Debt-freedom is vastly different from financial independence. A homeless person can be legally debt-free but does not have an enviable financial position. However, there is a clear and significant inverse relationship with your consumer debt load and your level wealth that is worth your consideration.
- Debt-freedom takes work to achieve. Those who expect to reap the blessings of freedom, must, like men, undergo the fatigue of supporting it. ~Thomas Paine
If debt is the reason you are in fear of losing your job, don’t cling to job security without addressing the underlying financial problems. Take the plunge. Decide today to eliminate your debt. Begin to see the purpose of work as more than meeting a financial need because its meaning can go infinitely beyond financial provision. Visualize a world where you no longer need a paycheck. That will likely mark the contextual change in your thinking that will lead you to financial independence.
Thought Question: What is the biggest threat to financial independence in your mind?
Now, it’s time to do the weekly Uncommon Money News and Yakezie Round Up.
Uncommon Money News and Yakezie Round Up
In preparing to write my posts, I often come across noteworthy and sometimes bizarre financial and business news. Below are links to some of these sites. Enjoy!
This week I participated in 4 carnivals:
- Carnival of Financial Planning at Intelligent Speculator
- Yakezie Carnival: The Next Challenge Edition atCool to Be Frugal
- Festival of Frugality at Canadian Finance Blog
- Carnival of Personal Finance at Budgeting The Fun Stuff
Included posts: The Rich Don’t Need The Rest of America, My Big, Fat Trashy Home: The Fall of the McMansion, Is extreme frugality for you?, Economists Blame ME for the Slow Recovery, Why Is Debt Really Decreasing?
Round Ups
Thank you Time Magazine for including me amongst your money blog recommendations!
Also, I am honored that Is extreme frugality for you? was included in Wisebread’sBest Money Tips Ways To Teach Kids About Music, Family Balance Sheet’s Odd and End, and Move to Portugal’s Link Love; Blog Carnival Edition round ups.
Joe and I also did much discussing about My Big, Fat Trashy Home: The Fall of the McMansion and he was kind enough to include it in his Retirement Lane Roundup round up at Joe Taxpayer.
In Barbara Friedberg’s No brainer money management for college students, she did a mini Yakezie Round Up and included Watson Inc. Thanks!!!
To my readers: I am so honored by your support. Thank you for reading, subscribing, and for voting for articles from this site on social bookmarketing sites such as stumbleupon, reddit, delicious, digg, propeller, twitter, and yahoo buzz. Together, we are telling thousands of the importance of financial literacy. I absolutely could not do it without you. You are vital this this site, and I appreciate your! Thank you sincerely
Posts Of The Week
Did the Infamous Bank Bailouts Just Work?
Graduating From IOU: Student Loans in America
Business News
Is Facebook Now ‘Worth $33 Billion
Blockbuster tells Hollywood studios it’s preparing for mid-September bankruptcy
Economy
Housing news continues to dominate the economic headlines
Low prices and rates can’t slow fall in home sales and Home Sales Plunge 27 pct. To Lowest in 15 Years
Did the Infamous Bank Bailouts Just Work?
Ten Signs of a Still-Troubled Economy at Time
Entertainment Money News
Been bombarded with images of Vampires lately? Me too, from the Rolling Stone cover to the small screen and movie theaters, these undead creatures are everywhere!
Vampires Suck Us Dry: Why the Sexy Beasts Are Making Billions
Recently release actress and sometimes singer, Lindsay Lohan, on the hook for $40K a Week for UCLA
Did Avatar Just Flop? Movie critic Joel Ryan thinks so
Personal Finance (Yakezie and other PF blogger friends)
Graduating From IOU: Student Loans in America at Mint
Free Ways To Teach Your Kids About Music at Wisebread
New Bias Uncovered in Standardized Tests at Biz of Life (Funny)
How to Pick a Mutual Fund: Return at Hope to Prosper
Do Dividends Matter? at Joe Taxpayer
Small Business Owners Fire Employees Before Tax Hikes at Financial Samurai (Bury your politics before you read)
Young children can have lots of un with inexpensive activities at Squirrelers
Lawn Care to Treat or Not To Treat at Family Balance Sheet
Excellent post. Jam packed with good advice and information. I have often said that if I would have worked at hard for myself as I have for others I would be a very rich woman. The security of a job as you mentioned can often be our own limitation. And what was once thought as security clearly is not evidenced by the current unemployment rate.
My recent post Living on One Income- How to Make it Work
Yes, sometimes debt can be a form of arrogance. I do think that a good education + good grades are good things to have, but university is not necessarily for everyone, and getting good grades alone will not necessarily lead to success.
Education needs to be well-rounded, but unfortunately much of our time is spent learning things that don't really help and are not even that accurate, anyways. I'm starting to question the whole wisdom of keeping kids penned up in a building for most of the day, beyond basic literacy and math.
Hello Kevin,
I am certainly pro-education. I am not for viewing job security as your primary goal. It is good to be a great employee if that's what you desire. However, you should have more than just your employer as your financial source.
I like your suggestion of a well-rounded, less restrictive education though 🙂
My recent post Is Extreme Frugality For You
I forgot to add…
I'm tweeting that Thomas Paine quote. It's great!
My recent post Meet your role model- Part II of III UPDATED
Hello Betty,
I certainly agree that we are all self-employed in a sense. While this may be scary, it is also liberating. Our productivity can influence our destiny to a greater degree if we truly embrace the entrepreneurial spirit.
My recent post Is Extreme Frugality For You
Thanks for mentioning the Thomas Paine quote. I thought it embodied the concept that freedom isn't free. Kind regards,
Shawn
My recent post Is Extreme Frugality For You
Very interesting point. I think that this is where the future is going. With the increase in productivity and technology, the barriers to entrepreneurship are falling by the day. Perhaps as people learn to be more independent we will start to see some changes in the role that government plays in our lives, as well. One can hope!
Thanks Kevin,
Technology has made it so feasible to have profitable side businesses with no physical inventory and no physical location. There are so many opportunities, it's a shame we don't develop our potential.
Gov't intervention can get in the way and should be minimal. Perhaps, this is possibly necessary for some businesses that have a history of misbehaving. Although capitalism has a way of punishing people who do bad business too. 🙂
My recent post Job Security vs Independence- Yakezie Round Up- Uncommon Money News