The days ahead are going to be challenging so this blog is an extension of last week’s encouragement it to have a Plan B.
We are used to having it all but that will not always be the case. We are going to have to embrace a different lifestyle. The economic projections are seasoned with encouraging news but lurking beneath is the real truth. It’s time to consider diversifying your household income as your Plan B.
There is no need to focus on an economic recovery because we have to rethink our economic futures. Over the past 10 years I have been preaching the concept of entrepreneurship. I have been shouting from rooftops the importance of owning a business or venture to increase income and diversify household income. Our budgets are so stretched that any slight change in income can be troublesome.
The predictions are the following over the next six months:
- Massive layoffs in the retail sector impacting the following retail giants and the employees:
- Sears, JC Penney, OfficeMax, Home Depot, etc.
- Huge job loss in the government sector affecting the following employee groups:
- US Postal Employees
- Teachers & Administrators
- Federal, State and Local Government Workers
- Government Services and Contracts
The above are fueled by a reduction in credit card spending, huge vacancy factors in commercial real-estate and market value reductions of commercial and residential housing. The schools and local governments in this category are going to be hardest hit.
Given the above facts, what is your Plan B?
If faced with a significant reduction in household income, most people don’t have a Plan B. There default plan would most likely be one of the following:
- Find another job but most likely at a significantly reduced salary
- File for unemployment
- Move in with Momma
- Play the lottery
All of the above are not going to fix the core problem. The issue is the need for diversity, not more of the same. Many people at this point may be unwilling to consider the alternatives until it’s too late.
Solution – The need for diversity is simple. By diversifying your household income, you will be able:
- Adjust if one of the other sources of income is lost or reduced
- Utilize additional income for savings
- Pay for capital purchases cash as opposed to financing
- Reduce debt (loans, credit cards, etc.)
I know what you are thinking. There is no way I can fit another thing into my busy life. You can make time for Plan B.
The focus of the Institute is to help you with the on training people on how to start and launch successful businesses or ventures. We will help you develop a Plan B that will help ensure your success and financial stability in the New Economy.
- The New Economy will require you to have a Plan B.
- Your Plan B can be tailored to a person’s interest and needs.
- The Plan B may require the support of family members?
Reflection / Lesson Learned
- The goal of Plan B is to diversify the household income.
- What are you doing will secure a legacy for your family.
- You have to start working on you plan the Institute is here to help.
Additional information on the Institute’s website at www.institute4se.com