We Are the Expendables

In today’s local economy there is a disturbing employment trend that I have a very good vantage point to observe, because my clients are from all walks of life. It is the difficulty of remaining employed, especially if a wage earner is in the private sector and middle aged or older. This trend has also affected my husband who wants to continue working but will likely be forced to retire.

I have written before that your single greatest asset is not your house, car, or bank account. It is your ability to earn an income. Your earning power will enable you to build your financial capital for your future years when your human capital’s importance will diminish.

If your human capital is not put to use, the rest of your financial goals will be put on hold. I have seen how middle aged wage earners have struggled to return to the workforce after layoffs or retrenchments. Corporations are always looking at their bottom line and wanting to hire cheaply or make their present workers do the jobs of 3 people.

If fortunately you are employed or self employed and you feel relatively secure, the best strategy is to realize that your circumstances could change, and you need to be prepared.

The 3 best factors in your preparation are:
1. Develop sensible spending habits. Remember a part of all you earn is yours to keep. Don’t make companies rich and yourself poor by spending all you earn.
2. Remain dedicated in building your own Easter I mean nest egg. A nest egg is money not a house. Your house won’t pay for groceries when you are unemployed. Don’t have the attitude that you can procrastinate on this. If your plan is to save later on, by then you may not be working.
3. Understand that being debt free will better carry you through a period of little or no income. Focus on paying down your debt, including your mortgage.

Young people please learn from us grey hairs and avoid the mistakes we made. Please share this post with someone that needs to see it!

Leave a Reply

Your email address will not be published. Required fields are marked *