I Was Not Prepared For This
It seems like most people are not prepared when the time comes for them fired or be let go from their job. Also, most people are not ready with the passive income ideas in place to replace the loss of their earned income. In today’s world, it is not “if” you get fired, but “when”. I believed that nothing like that would happen to me.
That was me 3 years ago. After working for the same organization for 8 years, I received a two-week layoff notice. I was laid off because of budget cuts as well as the department I was working for was subject to a statewide lawsuit that cut $1 million a year in from their budget from loss of revenue. The department needed to cut back on expenses and the “elected” official decided to lay off
everyone who stood their ground against the wrong things he was doing.
Even though I had been working hard for the previous 7 years building up my passive income to quit my job I did not feel like I was ready to actually stop working. It seems like it was mostly because I had not actually planned my escape out yet because I figured I could work for a few more years. That coupled with my rental properties were as consistent in bringing in enough cash for our family to live off.
When I got the layoff notice, I just had my fourth child who was barely 2 months old. My first week back from paternity leave, the “elected” official gave me a two week layoff notice. Because I didn’t feel I was ready to stop working, I went out and found another job in the County government within one week of receiving a lay off notice. I had a great reputation in the entire county government that I was able to find a great job with the same pay, seniority, benefits, etc. So I was never technically laid off because I transferred my new job before I was laid off.
Going through the experience of being laid off and not feeling like I had anything prepared, it solidified in my mind that I need to plan my escape from working for anyone that could take my job away whenever they want. In a future post I will write more about being laid off but right now I want to share real-life proof that you cannot count on your job and be dependent on anyone.
Real Life Example Why You Must Plan Your Escape
I received a phone call a few days ago from my brother (Sky Matsuhashi) who worked in the corporate office as the Office Manager for a large corporation that owned restaurants. He worked his way up from a server in the restaurant to the assistant manager, then became the general manager. After working as a general manager for 3 to 4 years, he moved into the corporate office as the office manager. He really enjoyed the change because being a general manager of a restaurant you work long hours, nights, weekends, and even holidays. Moving to the corporate office he was now able to work “normal” hours of 8 AM to 5 PM with holiday vacations and nights off. He enjoyed his job and did very well at it.
About a year and a half ago the corporation was listed for sale. Selling a big corporation that owns multiple restaurants does take some time for the sale to finalize. The employees of the corporation my brother worked for didn’t know when the sale was supposed to go through or even if it would go through. On August 20th 2015, the sale finalized and a new, larger corporation owned the corporation that my brother worked for.
I received a call from my brother at 10 AM the morning of the sale. He called to let me know that he had just been fired from his job and the new corporation was “cleaning house” by firing all the corporate employees. He shared what little detail that he knew about the employees being fired and we speculated the reason why they were all fired. After the shock of being fired from his job, he and I talked about plans to create passive income from many ideas to help him not have to work again.
I can only speculate why they fired every employee, but that is not the point. The point is that if you work for someone else, you are dependent on them providing you with a job so you can provide for you and your family. Whoever you are working for can decide to fire you for whatever reason the choose. If you are at the whim of an employer, you are standing on a ticking time bomb ready to blow. I have personally worked hard for the past nine years to get myself away from being dependent on anyone.
What’s Next for Sky?
Sky has been working on his passive income ideas so he would be able to quit working his job and it seems like this may be a great time for him to be let go so he can focus on building his passive income. He has created a blog to help people learn how to play poker called www.smartpokerstudy.com. His goal is to work hard at creating multiple streams of income for himself through online businesses. There are many ideas that he can employ to create passive income for himself and he now has the time to work on it.
He and I have also started another blog/podcast sharing our thoughts on the popular AMC tv show The Walking Dead, www.TheWalkingDeadBros.com. We plan to have this show be a launching point for us to get into podcasting for our other online businesses. Other ideas to create passive income are an online software company and niche site blogs. His plan is to never have to work for someone else again and now he has 99 weeks of unemployment that he paid into that he can use to help him start his businesses.
With Sky having another 40+ hours to devote to his passive income ideas, I believe he will be very successful and never have to work again. I am trying to encourage him to invest in real estate rental properties but he is not there yet. Maybe after his online businesses are established and making money will he enter real estate.
My opinion is that real estate is the most passive income of all the ideas out there. In my book, “How to Quit Your Job with Rental Properties” I explain how anyone can create massive amounts of passive income from rental properties. Here is the link to purchase my book.
How to Quit Your Job With Rental Properties eBook
A Step by Step Guide to Unlocking Passive Income by Investing in Real Estate
Please let me know what you think by posting a comment below.