I struggle with this question all the time, only to me a "stable job" is something I can rely on for the near future. To me, not knowing what I might be doing in a few months is stressful. I can't deal with it.
I see your point, though, but I think people like me realize "stability" is still a precarious thing. Who knows, if I lost my job I might learn the hard way that being an entrepreneur or a consultant is something I could pull off.
For now, it's just too scary for me.
Carrie
· 4 months ago
Interesting post and a topic near to my heart. I had similar conversations during my time as a contract workerbee, but in the end the marketing killed my drive to be an entrepreneur. I still think about it frequently though. Perhaps an interesting post or series would be a how-to about selling yourself as a contract worker.
Steve
· 4 months ago
@Carrie: True, marketing is a tough challenge for an entrepreneur. I am not a marketer, certainly. And thanks for the great post idea - I am working on it already!
chadsentientmoney
· 4 months ago
Fear and passiveness allow the masses to be molded as the decision makers see fit. If everyone wasn't afraid of losing their "stable" jobs they would stand up more often to the poor treatment most corporations slop onto their employees.
No Debt Plan
· 4 months ago
I fight this battle all the time as a recruiter. We do contracts, contract-to-hire, and direct placement. You hear "but I want full time employment!" all the time. Even after giving them examples of big companies laying off people from "stable" jobs they usually aren't swayed.
Steve
· 4 months ago
@NoDebtPlan: I know that most recruiters tend to be taken aback when I tell them I prefer contract work - it's not the usual response you guys get, I'd imagine. I've also found that most people leave a terrible corporate position and expect the next - at an identical, large, faceless corporation - to be better, beyond all reason....
bloggingbanks
· 4 months ago
That's an interesting point that you mention. My only problem with multiple streams of income is that you still have to make sure that those are geographically diversified. For example If I worked at a bank, got side income by doing bank bonus offers from time to time and I also held bank stocks for their high dividends.
One year later most bank employees are facing worse job security than before, bank stocks have cut dividends and prices are super low. If you had invested money in real-estate in an area hit hard by the financial crisis your other source of income would be anihilated as well
bubelah
· 4 months ago
It's not exactly diversification if everything you do somehow related to banks or to one industry only.
bloggingbanks
· 4 months ago
Yes, that was exactly my point bubelah. :-). I guess I should have better explained my comment.
Ron
· 4 months ago
Well said. Now can you please excoriate all those blog posts about how to "recession proof" your job?!!!
There are no stable jobs in the dictionary sense of the word and the sooner people realize it, the sooner we can move on. A stable job? Hah -- you're just one big screw up from having to find another job. You're just one political move by your boss from having to find another job. You're just one merger from having to find another job. You're just one called loan from losing your job as an entrepreneur.
Several years ago, I worked for my state's largest privately held company in my industry. We were a powerhouse and as the head buyer, I had a fabulous job. Authority to match my responsibility. Fun. Challenging. Fast paced. Financially rewarding -- very rewarding. Wined and dined by every rep in the region. Free season tickets to the box behind home plate for the MLB team down the road. Tickets to attend the PGA Tour Championship At East Lake in Atlanta with two nights with my wife in the Ritz Carlton. Limos, dinners at the posh restaurants, you name it. It was great.
Then - we were shut down in one week when the bank's auditor discovered that the owner was extending credit to less than credit worthy customers. The owner was an entrepreneur, his penchant was the "sale." The details would get worked out later, and I had to tell 142 people that we no longer had a job.
Stable job? Yeah, right.
I landed on my feet though and started my own company. Later I sold my shares to my partners and went to work for a corporate behemoth again. Don't ask why. I have no idea. But I AM building income streams like you said.
Steve
· 4 months ago
@Ron: That's a great cautionary for anybody who's at the "top of their game" and feels that there's no way it could happen to them. Things can change in a hurry, as your story demonstrates. But your story shows that you CAN land on your feet again, which is important for people to realize too - that unstable job will disappear, but you can rebuild as long as you have the emergency funds and drive to move on. Great comment!
Shannon
· 4 months ago
My husband is in the Army and I would have to say that his job is very stable.
Steve
· 4 months ago
@Shannon: The Army's definitely not laying anybody off these days, that's for sure.
bubelah
· 3 months ago
Well, someone I know was "separated" they call it?? from the Army? In other words she was let go, laid off, fired... Army is going through recession too and they have budgetary problems too. So, if they find even slightest fault with anybody's conduct they will discharge them. Our nanny is an army wife and she explained these things to me.
Janette
· 3 months ago
Really? My husband is retired Army and my son is in the Army. son in law is a Marine. We live next to a post and I teach in a 'primarily army' school. People begging to get out. No one being laid off. This is not the early '90's. The budget cuts will come. Right now they are in the civilian side of the Army. You have to be a major bad boy to get kicked right now! Pretty darn stable. IN fact they are signing people on for way more years than an 18 year old should be allowed to commit to!
Curmudgeon
· 3 months ago
Separation is almost always a voluntary act on the part of the soldier. For example, I separated after 6 years, simply because I didn't want to be in the military any more.
There is an "up or out" philosophy that if you don't get promoted after several attempts, there is no longer a position for you, but that is somewhat rare. And you don't have to reach too high a grade to be able to stay in long enough to take retirement. And, of course, if you get into legal trouble (whether civilian laws or the Uniform Military Code of Justice), you can be discharged (or sent to prison and then discharged).
maneeshbhati
· 4 months ago
It's not exactly diversification if everything you do somehow related to banks or to one industry only.
bargainr
· 4 months ago
If you have a "stable job" and you lose it, you have few options. If you're a freelancer, building your own name, you can find more work if your contract isn't renewed because you have options.
wf
· 4 months ago
Good post. I think the lack of stability is the real reason why the home-as-investment idea is a myth. In the old days, you could put your head down and expect a certain salary increase, thereby justifying the 30-year mortgage. Nowadays, there is a good chance you will be laid-off or get a pay cut (and if you're laid off in your 40s, most likely you will end up with a lower-paying job).
This may be a bit of a sidetrack but I think that this lack of stability is all the more reason for universal healthcare. It will benefit most people, including consultants, entrepreneurs, freelancers and the many people who have 'stable' jobs without health insurance benefits. There are many arguments, pro and con, but I have experienced far too many problems with insurers (denial of legitimate claims that I ultimately fought for and won) to believe in a private system that puts profit first.
Steve
· 4 months ago
@wf: Don't get me started on universal healthcare. If there was a public option, I would take it. I don't understand the frenetic opposition to it. I just want reasonably-price public catastrophic care and an HSA. I'm cool with that. So many people - like myself - delay jumping into entrepreneurial ventures not because of money or doubt but because of fear of medical emergencies or insurance issues. I agree with you completely. We need a not-for-profit health insurance option.
Gordo
· 2 months ago
There are several problems with government run healthcare. Just look at Medicare and Medicaid (people in favor of government healthcare often point to these programs too, which baffles me!) - these programs are essentially bankrupt. I don't know what part of bankrupt people don't understand. So you want to EXPAND these epic financial catastrophes by extending to everyone? It doesn't sound good to me.
Search youtube for " John Stossel - Sick in America", its a fantastic interview he did with Michael Moore. He also offers more commentary from his web page: http://www.realclearpolitics.com/articles/2007/...
You said you like choice in healthcare options. I guarantee you the "public option" is going to be more expensive than what you are currently paying (if you think healthcare is expensive now, wait till its free).
Then again, I know the system has serious problems, especially for independent workers (consultants) if you eventually do get some health problem the insurer with jack up rates every year or try to dump you, leaving you with few if any options.
Patrick
· 4 months ago
Excellent article, as always. And I'm right there with you. I have the "stable corporate job," but I don't deceive myself into thinking that it will really be there for me in 5 years, or that I won't leave if a better offer came along. I do it because it pays well and I have those "benefits" you mentioned.
But I've also built several decent streams of income through my small business, and if I lost my job, I know I would have other options to fall back on.
Steve
· 3 months ago
@Patrick: Thanks! By the way, to anyone reading the comments, Patrick's blog cashmoneylife.com is an excellent resource for learning how to build, protect and grow income streams, as well as advice on your "traditional" career.
Enrique S
· 4 months ago
I work at a "stable" job, and we're facing layoffs yet again. In the four years that I've worked here, there have been two major re-organizations, followed by layoffs and reassignments. The stable job is a myth.
Gordo
· 2 months ago
Haha, I can really relate. I was a consultant for 10 years, and every client tried to dangle the employee thing in front of me like it was some kind of upgrade (haha). At one client, who tried to hire me as a full time employee repeatedly, they eventually ended up firing all of the employees in the department but KEEPING the consultants! How's that for stability? The sad thing is that 5 consultants continued to do the work of what was once 80 employees, without really skipping a beat, and kept everything running just fine.
Although I must admit, my last client did eventually put enough pressure on me that I was basically forced to become an employee or leave. But honestly, it doesn't really feel THAT much different, and the compensation is about the same when all is said and done... though there are some weird differences, you get more respect as a consultant.
All Comments
I see your point, though, but I think people like me realize "stability" is still a precarious thing. Who knows, if I lost my job I might learn the hard way that being an entrepreneur or a consultant is something I could pull off.
For now, it's just too scary for me.
am not a marketer, certainly. And thanks for the great post idea - I am
working on it already!
One year later most bank employees are facing worse job security than before, bank stocks have cut dividends and prices are super low. If you had invested money in real-estate in an area hit hard by the financial crisis your other source of income would be anihilated as well
There are no stable jobs in the dictionary sense of the word and the sooner people realize it, the sooner we can move on. A stable job? Hah -- you're just one big screw up from having to find another job. You're just one political move by your boss from having to find another job. You're just one merger from having to find another job. You're just one called loan from losing your job as an entrepreneur.
Several years ago, I worked for my state's largest privately held company in my industry. We were a powerhouse and as the head buyer, I had a fabulous job. Authority to match my responsibility. Fun. Challenging. Fast paced. Financially rewarding -- very rewarding. Wined and dined by every rep in the region. Free season tickets to the box behind home plate for the MLB team down the road. Tickets to attend the PGA Tour Championship At East Lake in Atlanta with two nights with my wife in the Ritz Carlton. Limos, dinners at the posh restaurants, you name it. It was great.
Then - we were shut down in one week when the bank's auditor discovered that the owner was extending credit to less than credit worthy customers. The owner was an entrepreneur, his penchant was the "sale." The details would get worked out later, and I had to tell 142 people that we no longer had a job.
Stable job? Yeah, right.
I landed on my feet though and started my own company. Later I sold my shares to my partners and went to work for a corporate behemoth again. Don't ask why. I have no idea. But I AM building income streams like you said.
There is an "up or out" philosophy that if you don't get promoted after several attempts, there is no longer a position for you, but that is somewhat rare. And you don't have to reach too high a grade to be able to stay in long enough to take retirement. And, of course, if you get into legal trouble (whether civilian laws or the Uniform Military Code of Justice), you can be discharged (or sent to prison and then discharged).
This may be a bit of a sidetrack but I think that this lack of stability is all the more reason for universal healthcare. It will benefit most people, including consultants, entrepreneurs, freelancers and the many people who have 'stable' jobs without health insurance benefits. There are many arguments, pro and con, but I have experienced far too many problems with insurers (denial of legitimate claims that I ultimately fought for and won) to believe in a private system that puts profit first.
Search youtube for " John Stossel - Sick in America", its a fantastic interview he did with Michael Moore. He also offers more commentary from his web page:
http://www.realclearpolitics.com/articles/2007/...
How about the safeway plan for reducing healthcare costs?
http://online.wsj.com/article/SB124476804026308...
You said you like choice in healthcare options. I guarantee you the "public option" is going to be more expensive than what you are currently paying (if you think healthcare is expensive now, wait till its free).
Then again, I know the system has serious problems, especially for independent workers (consultants) if you eventually do get some health problem the insurer with jack up rates every year or try to dump you, leaving you with few if any options.
But I've also built several decent streams of income through my small business, and if I lost my job, I know I would have other options to fall back on.
Although I must admit, my last client did eventually put enough pressure on me that I was basically forced to become an employee or leave. But honestly, it doesn't really feel THAT much different, and the compensation is about the same when all is said and done... though there are some weird differences, you get more respect as a consultant.