Unsecured Income lead to Unsecured Life

Most of us work in any organizations as employee and Some of us are work as self employed. Let us see their side of the stories.

Unsecurity - Employee Side

(A) In case if you visit any railway station or bus stand, we use to see 'Coolie', to lift our luggage. Just attaching wheel on the suitcase, all the so called 'Coolie', lost their jobs.

(B) One of my friend was making lots of money by servicing Video Cassette Recorder and Video Cassette Player. Nowadays, usage of VCR / VCP have become very rare. So opportunity to make income wiped-off.

(C) I was reading somebody's biography. When he was graduating his college, people talked about plastics, somewhere in 1960's. Those whoever tied-up with plastics in those period, have succeeded, but no such jobs exist in 1990's.

Unsecurity - Self Employee Side

(A) One of my friend, was taken distributorship for floppy diskette for south India and was making huge money. Today, how many of us are using floppies...? Practically NO-ONE. He has NO income potential, through that business.

(B) One of my uncle, had petty provision stores, running successfully. Reference to giants like Reliance, TATA, Birla, jumping into retail space, opening-up big shopping complex, selling provision items, which is relatively less price for lesser quality & quantity, people attracted towards those products. In turn, my uncle need to close his shop, for not able meet the expenses.

Just to get a feel, how our jobs and self employment, gets challenged and in turn our income challenged which in-turn our survival in life. On that reference, lets assume, we continue to work for big companies. But unfortunately, that's also not safe.

(A) We work in a MNC(Multi-National Company) company, sincerely, seriously. Due to few financial pressure, if your company allowed for acquisition by any other company, then, the new parent company, would like to place their employees into the new child company. Make life miserable for the existing employees, in the form of reduction in perks, reduction in salary, reduction in designation, eventually, you end-up leaving them.

(B) On the other side, even-though you work sincerely and company financial position considerably strong, but due to corporate restructuring policy, if your bosses are changed to different departments or assignments. And the new boss feels that your presence or your credibility, or your contributions, are not appropriate means, your salary increment, your perks increment, your onsite opportunity, your promotion or even your survival in the same company can be challenged.

(C) Even though if the company financials are good, your connect with supervisors are good but if any scam happens, as it happened for 'SATYAM COMPUTERS', who have impacted the most. Its none other than their EMPLOYEES only. Around 20000 people are removed from the company, however, now company is doing good, but not with those same 20000 employees, who have been thrown out.

(D) Quiet recently, one of the reputed IT company operates from sholinganallur and siruseri, of chennai India, have NOT paid salary to their project manager and above cadre for the last 6 months. Because, customers have not released the payments. One of my friend, was affected quiet heavily.

This is the way our earning opportunity and income potential exists. With this basis, we are planning to do so many things, to achieve the same. Having all the above conditions are positive, let us see another scenario, how the situations can change.

(A) one of my friend workings for upcoming IT company at chennai, India. After few years, he went to US for a customer implementation. After spending 3 to 4 months, one evening, when he was coming out of the client office, he has found snowing. He could NOT see the things clearly. Within client premises, outside of clients room, he fallen down and broke his leg. He was admitted in the hospital. Customers requested for replacement of resource. So, another replacement flew from chennai. My friend was packaged and sent back to chennai for his speedy recovery. He was in bed around 18 months. When he returned back to work, the HR professionals, did mention that your employ-ability need to be reviewed, because, you have NOT worked for last 18 months. Based on the review acceptance only, they would like to induct into the company. He was so much terrified.

(B) Assume, reference to huge health surprises, in case if we are NOT live(just assumption), who would take care of our families? primarily on the financial front? Generally people talk about HLV(Human Life Value), which need to be calculated as 10 to 15 times of annual CTC(Cost to the Company) one receives. We should have insurance policy at HLV level. Did we have insurance policy like that? definitely NO. Do not worry. You are the representative of  99.2 % of people, who have insurance policy, bu not to the enough level.

Think seriously for a minute.

This is the way we are living. Be sensible and responsible. 

In case if you are interested, to build a business against all odds, which can pour royalty income for next three generations without doing any investment, please connect with me, else go for next update or wait unfortunate to attack you. Thanks.

Limited Income

Limited Income

A person work and generate income, by his own effort & time, is very much limited.

Suppose if you want to increase your salary by 30 % from the current. So if you work 24 hours for the entire 12 months, than, is that possible to state confidently, that your salary would be hiked to 30 %?

(a)    If you say ‘YES’, than what’s the reference & assurance? Do we have any metrics to measure the same? Would the salary hike happen automatically from 13^th month onwards?

(b)   Whatever the performance you demonstrate, still it need to be verified by another person and hike is based upon other person’s interest/opinion only. Not just based on your performance alone. 

(c)    It’s practically, ‘NO’, because, not by anyone can work continuously by 24 hours for the entire 12 months. Even if you work so good for 10 months, in last 2 months, if you have any conflicts with your supervisor, then, you hike could be challenged.

(d)   Moreover working 24 hours by anyone is NOT possible. Because, every day we spend 8 to 10 hours for work, 6 to 8 hours for sleep, 1 to 2 hours for travelling and 2-3 hours for other activities. So practically we cannot extract more than 10 hours in a day for work.

(e)   If there any opportunity to spare & leverage, some other’s time & effort for your income? If so, you & your spouse can participate. Nobody else.

Suppose if you want to increase your small business income by 30 % from the current, what could be possible alternatives.

(a)    Probably, you can open-up additional shops at different locations, expand the present shop to accommodate more products, add more additional products, extend business hours from present limits.

(b)   Add more value-add services, like home delivery, credit card payment, acceptance of meal vouchers, free pickup / drop facility.

(c)    Deploy more automated machines, minimize human power, and hire resources with experience of cheap labor rate.

Ultimately, whatever approach you choose, the income is directly proportional with the investment made. The returns from the small business would be either below or at par with the investment made, not really or sure of hikes from the current levels.

Could we do anything, so that our income levels to improve from limited to unlimited?

Please track this space for more updates.

ACTIVE INCOME

We all know INCOME, but what is Active Income? Do not be Panic. Let me explain.

Lets say you join a software company. You work really hard. You take your customer problems, on your head, bypassing all your comforts. With sincere focus, commitment, you work-out, for an optimum, ever green design (OR) solution to the customer. Customers impressed. Based on your performance, customers were delighted to offer the project, to your company. You work sincerely, and help in realizing the solution. Again customers impressed and renew the contract.

So far so good....Now, the situation comes, Lets say 

(A) You end-up having difference of opinion with your boss, on some aspects. On that reference you look-out for an opportunity outside of the company. Fortunately you get the same, so you leave the company. 

(B) You get married with your dream-girl and she wanted to relocate to new place, where your organization, does not have any facility. Based on personal convenience, you get an opportunity from the new location and leave the organization.

(C) Due to market conditions, your company decides not to provide hikes for this year, but you worked so hard this year, and you feel, that you deserve definite hike. But organization communicates, as company's policy not to provide hike to anyone. So you decide to leave the organization.

(D) Due to financial constraints, within the organization, board of directors, decides to reduce 15 % salary from all the employees, which was not acceptable to you. On that reference you leave the company.

(E) You loved ones, fall sick and you wanted to take leave, but the company is NOT giving as per your convenience. On that reference you resign from the organization.

Even though you leave the organization, customer seems to be not aware of the same and still renew the contract, referring to the performance provided by you (OR) the quality of solution / design delivered by you.

Tell me....honestly....

After relieving from the company(including final settlements), do you stand any chance to receive any income from your company??? 

The organization gains repeatedly, based on your past performance, do you get anything after leaving the organization???

In case if you say "NO" then you are working and still representing for 'ACTIVE INCOME'. 

As long as you are working, as long as you are associated, you entitle to make income is called ACTIVE INCOME. The moment you leave or dis-associate, you would NOT be getting the same.

Its not only applicable to software company....Instead, It applies to all company, all industry, all geography and it applies to everyone except the person who owns the company. 

In case if you want to know, any more alternates...please watch this space for more updates. 

My Favourite Extracts: Rich Dad Poor Dad - Robert Kiyosaki

"The poor and the middle class work for money." "The rich have money work for them."

`emotion' stands for energy in motion

A job is really a short-term solution to a long-term problem."

Rich dad went on to explain that a human's life is a struggle between ignorance and illumination.

we can work or not work, and our wealth grows automatically, staying way ahead of inflation. I guess it means freedom. The assets are large enough to grow by themselves. It's like planting a tree. You water it for years and then one day it doesn't need you anymore. It's roots have gone down deep enough. Then, the tree provides shade for your enjoyment.

So when people ask, "Where do I get started?" or "Tell me how to get rich quick," they often are greatly disappointed with my answer. I simply say to them what my rich dad said back to me when I was a little kid. "If you want to be rich, you need to be financially literate."

An asset is something that puts money in my pocket.

A liability is something that takes money out of my pocket.

when it comes to money, high emotions tend to lower financial intelligence.

Income = Work for Owner

Expense = Work for Government

Asset = (none)

Liability = Work for Bank

A corporation is merely a legal document that creates a legal body without a soul.

My highly educated dad always encouraged me to seek a good job with a strong corporation. He spoke of the virtues of "working your way up the corporate ladder." He didn't understand that, by relying solely on a paycheck from a corporate employer, I would be a docile cow ready for milking.

When I told my rich dad of my father's advice, he only chuckled. "Why not own the ladder?" was all he said.

Employees earn and get taxed and they try to live on what is left. A corporation earns, spends everything it can, and is taxed on anything that is left. It's one of the biggest legal tax loopholes that the rich use. They're easy to set up and are not expensive if you own investments that are producing good cash flow. For example; by owning your own corporation - vacations are board meetings in Hawaii. Car payments, insurance, repairs are company expenses. Health club membership is a company expense. Most restaurant meals are partial expenses. And on and on - but do it legally with pre-tax dollars.

Job security meant everything to my educated dad. Learning meant everything to my rich dad.

Job is an acronym for 'Just Over Broke'.

"Workers work hard enough to not be fired, and owners pay just enough so that workers won't quit."

When I speak to adults who want to earn more money, I always recommend the same thing. I suggest taking a long view of their life. Instead of simply working for the money and security, which I admit are important, I suggest they take a second job that will teach them a second skill. Often I recommend joining a network marketing company, also called multilevel marketing, if they want to learn sales skills. Some of these companies have excellent training programs that help people get over their fear of failure and rejection, which are the main reasons people are unsuccessful. Education is more valuable than money, in the long run.

Unfortunately, there is some truth to the old statement "You can't teach an old dog new tricks." Unless a person is used to changing, it's hard to change.

my educated dad worked harder and harder the more competent he became. He also became more trapped the more specialized he got. Although his salary went up, his choices diminished. Soon after he was locked out of government work, he found out how vulnerable he really was professionally. It is like professional athletes who suddenly are injured or are too old to play. Their once high-paying position is gone, and they have limited skills to fall back on. I think that is why my educated dad sided so much with unions after that. He realized how much a union would have benefited him.

"Winning means being unafraid to lose."

In my own life, I've noticed that winning usually follows losing. Before I finally learned to ride a bike, I first fell down many times. I've never met a

who controls the past controls the future, who controls the present controls the past.

golfer who has never lost a golf ball. I've never met people who have fallen in love who have never had their heart broken. And I've never met someone rich who has never lost money.

So for most people, the reason they don't win financially is because the pain of losing money is far greater than the joy of being rich. Another saying in Texas is, "Everyone wants to go to Heaven, but no one wants to die." Most people dream of being rich, but are terrified of losing money. So they never get to Heaven.

Quoting John D. Rockefeller, "I always tried to turn every disaster ' into an opportunity."

If you have little money and you want to be rich, you must first be "focused," not "balanced." If you look at anyone successful, at the start they were not balanced. Balanced people go nowhere. They stay in one spot. To make progress, you must first go unbalanced.

"Cynics never win," said rich dad. "Unchecked doubt and fear creates i a cynic. Cynics criticize, and winners analyze" was another of his favorite sayings. Rich dad explained that criticism blinded while analysis opened -< eyes. Analysis allowed winners to see that critics were blind, and to see opportunities that everyone else missed. And finding what people miss is | key to any success.

Someone who criticizes and does not

analyze. Someone who lets their doubts and fears close their mind instead of open their eyes."

Rich dad gave me a way of looking at Chicken Little. "Just do what Colonel Sanders did." At the age of 66, he lost his business and began to live on his Social Security check. It wasn't enough. He went around, the country selling his recipe for fried chicken. He was turned down 1,009 times before someone said "yes." And he went on to become a

multimillionaire at an age when most people are quitting. "He was a brave and tenacious man," rich dad said of Harlan Sanders.

So when you're in doubt and feeling a little afraid, just do what Col. Sanders did to his little chicken. He fried it.

IF YOU DO NOT HAVE A STRONG REASON, THERE IS NO SENSE READING FURTHER. IT WILL SOUND LIKE TOO MUCH WORK.

Wise investors buy an investment when it's not popular. They know their profits are made when they buy, not when they sell. They wait patiently. As I said, they do not time the market. Just like a surfer, they get in position for the next big swell.

What I find funny is that so many poor and middle class people insist on tipping restaurant help 15 to 20 percent even for bad service and complain about paying a broker 3 to 7 percent. They enjoy tipping people in the

who controls the past controls the future, who controls the present controls the past.

expense column and stiffing people in the asset column. That is not financially intelligent.

Frequently, my broker will call me and recommend I move a sizable amount of money into the stock of a company that he feels is just about to make a move that will add value to the stock, like announcing a new product. I will move my money in for a week to a month while the stock moves up. Then, I pull my initial dollar amount out, and stop worrying about the fluctuations of the market, because my initial money is back and ready to work on another asset. So my money goes in, and then it comes out, and I own an asset that was technically free.

Ray Kroc, of McDonald's fame, sold hamburger franchises, not because he loved hamburgers, but because he wanted the real estate ; under the franchise for free.

who controls the past controls the future, who controls the present controls the past.

So wise investors must look at more than ROI; it's the assets you get for free once you get your money back. That is financial intelligence.

If we gave 100 people $10,000 at the start of the year, I gave my opinion that at the end of the year:

80 would have nothing left. In fact, many would have created I greater debt by making a down payment on a new car, refrigerator, TV, VCR or a holiday. 16 would have increased that $10,000 by 5 percent to 10 percent. 4 would have increased it to $20,000 or into the millions.

"If you want something, you first need to give," he would always say. When he was short of money, he simply gave money to his church or to his favorite charity.

If I could leave one single idea with you, it is that idea. Whenever you feel "short" or in "need" of something, give what you want first and it will come back in buckets. That is true for money, a smile, love, friendship. I know it is often the last thing a person may want to do, but; it has always worked for me. I just trust that the principle of reciprocity it is true, and I give what I want. I want money, so I give money, and it comes back in multiples. I want sales, so I help someone else sell something, and sales come to me. I want contacts and I help someone else get contacts, and like magic, contacts come to me. I heard a saying years ago that went, "God does not need to receive, but humans need to give."

As for stocks, I like Peter Lynch's book Beating the Street for his formula for selecting stocks that grow in value. I have found that the principles of finding value are the same regardless if it's real estate, stocks, mutual funds, new companies, a new pet, a new home, a new spouse, or a bargain on laundry detergent. The process is always the same. You need to know what you're looking for and then go look for it!

Job Security?

(A) We are working in a world, where a skill or commodity or market or scope, which was so demanded at a time, may not be needed after few months / years. But we cannot build career, based on that. 

(a) For an example, When I have started my career, demand for skills like C or C++, where very strong and huge. But nowadays, no-one seems to be looking for the same.

(b) During my childhood time, I have seen photo studio, which was huge business. People generally rush to these studios to make photos. Nowadays, photo studios do exists, but does not make much as it was. Instead, people make photographs, using their cell phones.

(c) During my growing-up times, we had floor mills, at every street, where grains get powdered, to make tasty home foods. Nowadays, most of family, have members, in working category, and cooking at homes, have become quiet rare. Even if it need to be cooked, No-one worried about tasty, healthy, but only for the sake of eating to fill the stomach.

(B) Nowadays, we see quiet a lot of companies, undergo mergers & acquisitions, where the parent company, quiet keen in placing their people in key roles, and move the child company people into under privilege roles or make them redundant & frustrate them to the core to feel as obsolete. This is becoming common in all part of the world. 

Even as worst condition, if the organization, undergoes any major restructuring and your boss moves-out to any other department,  then, your success stories, loyalty, commitment, dedications are moved-out from the evaluation of new management team / members. Again you need to start fresh, from scratch, by developing new success stories, to impress new team.

Based on this engagement, do you still believe that your boss, will take care of your career effectively, smoothly, by which you can fulfil your family needs and dependants expectations?

On contrast, if you enjoy good understanding and relationship with your boss all over year and messed-up on the appraisal month, assume if he/she push you to the bottom of appraisal hierarchy, do you still maintain same spirit?

(C) Nowadays, people dying in road accidents are increasing. This can be understood, well by the increase  the sales of new vehicles, new brands, which runs in the same old congested, narrow roads. Government, does not show any proactive actions, instead, waiting for any worst & dramatic to happen, to act reactively. In this process, (nothing should happen to anybody or anyone), if any of you get into any accidents and if you suffer by any major injury or in case of your life loss, does any of your company / employer, really do care for your family or any of your dependants? Are you sure? Does organizations, vouch anyone of you, during your appointment or offer letters?

Most of us, undergoing some sort of chronic diseases, like, Blood Pressure, Diabetes, Heart problem, Cancer etc. which are the items, can attack you any time & any part of your organs of your body. Even in that case, do you still believe, these organizations, support you with the same employment? and with same benefits? Are you sure?

NOTE: I met a friend, who got divorced, from his loving family, just because, he could NOT show any interest to his family members. But he says that he worked so hard for the project, company and career progression and now I have learnt, that he has taken lots of leave due to the divorce court case. On that reference, his appraisal gone down. He wanted to meet me for some time, when I took the day off and met him. He literally cried and said that he lost his career & family. The parameters mentioned above, were the points put to me today, when I could not meet him, during his tough times.

I am not sure, what is job security, loyalty, ethics, dedication. progression? I am sure, most of us are slogging, huge hours for our organizations, departments, and project's success, but looking at few parameters as mentioned above, I am NOT sure, where am I heading towards....!!! In case if anyone of you could help me, please do let me know. Thanks.