When you go to work for someone else, you’re taking a pretty big gamble. It may seem counter-intuitive, given that being an employee means receiving a reliable paycheck on a regular basis.
But if that paycheck is your only source of income, you could lose 100% of your earnings at any time for reasons far outside your control.
We’ve already seen it happen to hundreds of thousands of skilled, talented workers who believed they had a high amount of job security when the Great Recession hit. Companies had to shed costs – and that started with laying off employees or even shutting down entire departments.
As an employee, you’re at the mercy of what someone else wants for their business. Sure, you can work hard, make yourself a valuable asset, and become a cog in the machine that would be extremely hard to replace.
But at the end of the day, your boss — or the higher-ups in the company, or those that run the business — may decide that it’s best for future growth to downsize, outsource, or reorganize.
So it’s a gamble when you’re working for someone else without any other income sources. Because you can be fired or laid off at any time, your downside is unlimited. 100% of your income is always at risk.
How can employees fix this problem? [Read more…]