The following is an excerpt from my book Home Based Business Escape Plan. If you enjoy what you read here, you can take a look at the book HERE.
“It’s The Economy Stupid
I’m not going to give you a complete rundown on what has happened with the global economy since the 1950’s. If you want a user friendly version of that, I would suggest picking up James Altucher’s book “The Choose Yourself Guide To Wealth”. It has a very good synopsis of why things have gotten progressively more difficult economically, no matter what country you live in.
Here’s what I am seeing, though.
It is harder for families to make ends meet now than it was a generation ago. It is much harder to buy a house for instance. Why? A series of housing booms in particular and inflation in general have made the rise in housing prices outstrip rises in wages. Real estate ownership was traditionally the best way for middle class families to create and build wealth. Alas, no longer!
Let me give you some quick statistics on this. From 1950 to 2000, the average cost of a house in the United States divided by the average family income was about 2.2. (With the exception of the late 70s when the ratio was even lower due to extremely high interest rates.) As of 2010, however, that ratio has risen to 3.4! This basically means that on average a house costs 50% more than it has historically for the past half century. The result of this? Well, it’s more difficult for people to get into home ownership, for one. Two, all those people who lost their homes in the recession will have a much harder time getting back into home ownership. And, since people have to live somewhere, rents have risen. It’s the iron law of supply and demand, and it’s not working in the favor of the average American family. The bad news isn’t just in the housing market. It’s systemic!
In my parents’ generation, there was a sort of social contract between employer and employee. No longer. The average stay at a particular job is something like three years now. How is that supposed to build loyalty and trust? Of course, this is not just a problem from the employees’ side. Decades of downsizing and globalization have shattered any good will between corporations and their employees. It is not unusual to get sacked after ten or even twenty years of service to a corporation.
It gets worse!
We are living longer. Yet, most people do not even have savings for retirement. Statistically we are all outliving our retirements. Used to be that you worked somewhere, paid into your retirement account monthly, and when you actually retired, the company took care of you forever. Retirement works differently now. With bank deregulation, Wall Street got their hands on our retirement funds. Today when you outlive your money, you are moving in with your kids. What a depressing end to life.
Couple all of this with the new “Gig” economy (think Uber), rampant unemployment (in the US), families having to piece together part time jobs just to make ends meet, and you are not looking at a rosy future for virtually anyone except the purse holders, government nomenklatura and corporate goons. (Yeah, I am biased!)
If you are trying to play by the old rules, watch out. They do not work any more. What rules work?
You absolutely must learn to do what Dave Ramsey the radio money guru calls learning to “kill it and bring it home yourself”! For me this is what I loosely call the “laptop lifestyle.” I have lived the real version of the laptop lifestyle for over five years now. I am here to report that the water is fine. Better! I have more time. More money. My health is better. My relationships are better! I depend on me and my growing set of skills for my family’s financial future. (Just for complete transparency, I’m a born again Christian. I ultimately depend on the God Almighty of Israel.) And, I am an evangelist about all of this! I’m here to help you escape to a more secure and better life!
Keep reading. I sense a revolution brewing!”