My job had threatened to add a third agent almost 2 years ago. Since then my colleague and I have been sitting at the edge of our seats, pushing our limits, and trying to show that we didn’t need a third agent. Adding a third agent would significantly change my compensation.
All this talk about adding another person and there was no discussion about compensation or how three agents will be able to make the same commissions as two when we only have so much product to sell in a year. If you do the math, it just doesn’t add up. When I pointed this out, upper management dodged this question and accused me of being not a team player, as a way of ignoring an essential aspect of my job: compensation.
This story isn’t even all that uncommon. I’ve said it before and I’ll say it again, employers only care about the bottom line. Even if it’s at the expense of the employees.
So I decided to start a blog and start writing as a side hustle because besides real estate what did I really have as talent? I really searched my brain for the answer and the only thing that could come up with was that I was well written and creative.
That idea was the start of something amazing.
I realized my job was only earned income and I needed other forms of income to balance and make my financial wellbeing less prone to risk and volatility.
The changes that my company made is a prime example of volatility in the workforce. People make the false assumption that having a job will bring them stability. But there are always changes at work; they’re always trying to maximize earnings, profits and results. What happened to me wasn’t abnormal but it was unfair.
So one way of making some additional money is to make passive income. This sounds like the Holy Grail of earning. I mean, who wouldn’t want to make money from doing nothing and having a business running in the background? (Raises Hand).
But the notion that passive money is easy is a myth. Usually when people collect money on their business with little effort, they’ve already done the bulk of the work in the beginning. The beginning is the hardest, where you’re working and slaving and getting nothing in return for months or even years on end. The only instance where I’d say passive money is easy is when you randomly hit the lottery or an inheritance and you can dump that money into stocks or real estate and just earn that way.
But if you’re waiting for the lottery or a windfall of inheritance to happen to you, then you’re going to be poor for a really really long time.
I would consider things like blogging or re-investing your earned income into the stock market or real estate as passive income. Because first you’re doing all this work to get a little bit now but over time that investment will grow on itself and make tons more money than what you started with.
But passive income is anything but easy.
Another stream of income that you can pursue is profit income.
Profit income is when you take an item, you buy it and then you’re able to market it and sell it for more than what you bought it for.
So many businesses are built on the profit income model of buying cheap, selling high and marketing in between to create that value. Any brand that you buy from, whether it’s clothes, make up or household goods, is built on the profit income model.
The surprising thing is that anybody, I repeat, anybody can make money from profit income.
In today’s day and age, websites like Etsy, Poshmark, eBay, and Amazon make it insanely easy to make a profit. Whether you’re making $10 a month or $10,000 a month that’s money that you just pulled out of thin air, out of nowhere. It is much easier to make a profit in today’s digital age than it was it when we only had brick-and-mortar stores.
Back before Internet and all that, mom and pops would take out a loan, then rent a commercial space, buy all these products to fill their brick and mortar store and then try to build a profit from yearly sales.
People still do that, but that’s incredibly more risky than opening up an Esty store spending a couple hundred dollars on products to resell at a higher price and then snowballing each sale to create a bigger company down the line.
Even Uber is a profit model type of income. Drivers want to make sure they’re making more in rides than they spend on the mileage of their car, depreciating value, gas and insurance.
The reality is that my job is just one piece of the pie, earned income is subject to change and I shouldn’t be surprised about how ruthless my manager is or the owners are to squeeze every dollar out of their employees. But if I’m not pursuing the other avenues of income available to me, then I’m just leaving money on the table and leaving myself vulnerable to the changes of the corporate environment.
Working on getting those other forms of income are essential to financial well being. God forbid, I lose my job, then half of our total household income (between me and my husband) is wiped out.
If my job is only 1/2 of my income and I’m able to supplement with passive income and profit, then I’ll be able to survive during economic downturns and avoid debt.
You’ll never realize how risky relying on your job is, until you lose it. I’m all about preparedness and protecting my family from what messed up business practices my employer may enact on me.
So don’t leave money on the table. Take what you can out of this life and make sure you’re capitalizing on all the income opportunities available to you.
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