How many aspiring investors do you know who have given up their dream of financial independence because of fears of recession or job loss? “They’d love to be investors,” they say, “but the time’s just not right…” Let’s take a look at these concerns.
There is no question: The economists have declared the recession over, but tell that to the tens of thousands waiting for a call back to work. And those still enjoying a regular pay check? Well, many of them are worrying too, waiting for the “next shoe to drop”.
So, what to do? Hunker down on what savings we have and hope that in an emergency that’ll be enough to tide us over? The whole idea behind “being an Investor” is to have investments to fall back on when the pay checks stop.
IRAs are not investments in the short term, nor is money in the bank. To be sure, you do need these, but savings only earn interest– About as much as the banks are willing to pay you to assure their profits while they invest your savings elsewhere on their own behalf. OK, so you need that “cushion”, but savings are only that, ready cash when you need it. Until it runs out.
This isn’t a rant against banks. Although they aren’t exactly leading the way to Economic Recovery for the Average Joe. They’re still following their standing preference for lending only to those who don’t need to borrow. Certainly not small businesses or entrepreneurial startups (or real estate folk).
Given the uncertain business climate, what are we to do to address “head on” our own concerns? Sadly, there’s little we can do to guaranty our own employment prospects. Working harder isn’t enough. The economic climate dictates the behavior of employers, in good times as well as bad. And we can’t all just go out and “get a Government Job.”
What we can do is seize opportunity where we find it. Open a hot dog stand outside a factory? Maybe. Of course the factory might close… Go back to school; train for another line of work? Takes time. And you’ll still be someone else’s employee.
The answer to your job issues– (It’s not about Courage)
You may very well be the answer to your job issues. Looking for a second job? The best insulation against a layoff is a part time job already in hand. How ‘bout starting out part time? These days part time jobs may be as hard to come by as full time employment: Competition for part time jobs will be just as keen. There is an alternative.
As they say, “Be your own boss.” It’s not about courage: Like any good business person, look for a Need in the Marketplace and fill it. Buy wholesale and sell Retail (just like the banks, ‘renting out’ your money!). Be a great Bargain Hunter. Start small, and “grow your business”.
Here in Chicago and elsewhere, we have a need you can fill. And that need is for Affordable Housing. Call it a niche market. Unlike much of the real estate market, the demand for clean, well managed affordable housing is as strong as ever. And at the presently depressed prices of distressed homes, investors are enjoying unheard-of profit margins.
Maybe it’s time you put that “2nd Income Stream” into place. One property at a time. (Start small, grow your business…) It just makes good business sense. #