It’s feast or famine in the future of work

 

This article was originally published on www.rebeccapritchard.com.au.

As white-collar workers, we haven’t been that upset about the blue collars losing their jobs over the last 200 years through the industrial revolution.
So why are we getting so antsy now?
Because it’s happening to us.
Technology can do so much of our work, and it’s getting smarter. And companies have to keep changing so quickly that having long-term staff in the same roles with the same skills just doesn’t make a lot of sense.
If you’re holding onto the idea of ‘I want to work 9 to 5, I want to have my long service leave’, then probably don’t read on! I think you may be in trouble because the world’s not going to stop and wait on this one.
There’s a new way of working on the way, and if we’re not ready, we’ll be left behind.

Goodbye 9 to 5

Before long, the concept of an employee will be redundant. Work will all be contracted or freelance. A big change is that we’ll be getting paid for the value that we offer, rather than being a bum on a seat for 40 hours a week.
We’ll also see the rise of the convenience and sharing economy.
This all means our incomes will be like feast and famine — sometimes we’ll be working and earning constantly other times it’ll be lean.
This is already normal for people in sports, acting, music and art. One of my members clunked from earning over a million dollars one year to about $50,000 the next.

Wait, this actually suits us

It might seem overwhelming to think that a steady income won’t be forever.
But the good news is, this fluid work style actually aligns better with our values and lifestyles as millennials. There’s a huge opportunity to get comfortable with being uncomfortable, and to use this as a chance to do exactly what we want!
I transitioned from being an employee to contractor, and the world didn’t come crashing down. In fact, it’s a hell of a lot better for me than it was before.
As millennials we also have a bit of time to decide what side of the fence we want to be on when the workforce changes. I want to be on the ‘electively unemployed side’. As in, I want to be financially free to do high-value work that doesn’t necessarily have high-value income.
So, in this world, do we want our glass half empty or half full?

Back to basics

If half full is the answer, we have to capitalise on the feast times so we don’t hit that massive clunk in the famines.
The first way to do this is to know exactly how much money you need to live both a basic life and a more comfortable life. Someone earning $150,000 might be comfortable on $70,000, so they can save the rest for the famine.
The next step is to get stuck into some serious cash ‘carb loading’ to layer up those financial six packs that we talked about in The Dorito Effect. Building this buffer is the least sexy of your financial strategies, but it’s really important. We can plan until the cows come home, but life is guaranteed to throw curve balls and holding some cash is the best way to handle this.
Third is building a passive income, which is about making sure your income is not 100 percent determined on your personal services. The more of your household income that comes from investments, the more freedom and flexibility you have.

Read the full article on www.rebeccapritchard.com.au.

 

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Disclaimer: Information contained within this article is of a general nature. Do not be rely upon it when making financial decisions. Please consult a professional financial advisor or planner (like us!) before acting.