Thursday, May 21, 2015

The Fear of Working Forever

Take-a-seat Gremlin here.  Last week I had the privilege of working outside all week for field work.  This happens in my industry from time to time, and I was fortunate enough to be outside with good weather and in a relatively nice area, which is not always the case.  I work this way several times per year, sometimes lasting one day and others multiple weeks.  However, this past week made me think a lot about passive income creation for two reasons.  One was my outlook on my job, whilst being able to pull in a secondary stock generated income at the same time.  The other thing was my on-site coworker's view on things.

First, a secondary income is excellent in the sense that it provides security that a regular job cannot.  I am very certain that my position in JNJ or Coke (KO), for example, will be around for a long time generating increasing income year after year.  It is not just JNJ or KO, but also most other positions providing income.  I cannot be so sure when it comes to my job, though it is good right now, what if my company is a house of cards?  If it folds or fails, I have work to find employment; and there are no guarantees.

To be sure, I like the place I work at right now.  The pay is not industry leading, but it is still a nice small place that provides me with a level of flexibility, training, and opportunity for advancement.  My field coworker is with another company and has switched jobs a lot.  In our industry recently, lots of big companies have taken hits and he was fortunate to escape one only to land in a small company that has so much work that its employees have a tough time keeping up.  I would not want to be in either of those situations (though the latter is far better).  So yes my job is good, but the real light in the tunnel is not increasing my salary or promotions, its that I am establishing a second stream of income that will work regardless of how my day job goes.  It is the ultimate ace up my sleeve.

The second item I thought about was that same coworker's view on life.  To be fair he has more debt due to school than me and has had some crap experiences with employment, but those must be taken with a grain of salt.  He believes that he will work until he dies, wins the lottery or someone great and rich comes along offering to marry him.  Those last two things seem unlikely, so let's focus on the 'work until death.'

He told me that he always finds something to spend money on, one way or another.  Some of it makes sense to me, plenty of it doesn't.  Yes you need a car for our type of work, but no you don't have to blow your whole wallet on it or other luxuries (you don't need to eat out or make a steak every night).  He expressed his fear and disillusion with the market, and does not see that stocks could be used to generate a passive income stream to help him achieve wealth.  I've long ago realized I cannot make someone want to become a dividend investor, or investor at any level.  All you can do is lay out the strategy as a suggestion, if a person sees the point they hop on the wagon.  Most people do not see the point, and continue to work and spend, and spend and work.  Still it is something that will continue to boggle my mind, which is the belief that there is no way out.

That belief is one of the reasons I am building my passive income stream.  Not everyone believes the stories they hear, or that something works for them to make money.  So one of the reasons I am working towards passive income is that it will make me example to my friends.  It will show that any person of normal means can generate passive income through savings, smart investments, and patience.

I am sure many dividend growth investors think the same way.  Now for those on the USA, have a fun Memorial Day weekend.  I'll be at the beach, hope to see you there.
- Gremlin
- Long JNJ and KO

No comments:

Post a Comment