“To be prepared is half the victory.”  ~ Miguel de Cervantes

New challenges surface as you become more successful professionally. Understanding what’s headed your way can give you the necessary time to steer around the iceberg. The Titanic was among the finest, most successful ships, yet that didn’t save it when nearing the iceberg.The following are two stories in which both men are headed toward the iceberg with different outcomes.

The first story involves a fictional character named Rob. He is a loyal, talented and hardworking employee with a story all too commonly seen in the world today, and one that needs to be shared. Rob does all the right stuff at his place of employment and makes himself increasingly valuable to the company. Finally, after years, Bob starts to gain promotions, becomes more visible, and makes some real money. He’s expected to check emails and answer calls while on vacation, during holidays, family events and even when sick. Rob knows he better deliver results because he’s competing against people who will pay that price. As he ages, Bob has lost a step and begins to wonder what life’s all about. He’s probably in the neighborhood of fifty years old. His employer looks at him as a temporary way to improve profitability. The employer lets Rob go, and replaces him with a much younger man who’ll work harder at a fraction of Rob’s salary. Unfortunately, Rob is still paying on his McMansion, has kids in college, and a retirement fund that’s underfunded. No one is interested in hiring him at even half of his original salary because he’s perceived to have slowed down and been accustomed to making good money. Rob’s screwed. One year ago Rob looked solid as a rock, but now nobody wants him, and his financial life has become a trainwreck. What’s left of his self-esteem is headed down the drain. Rob’s been squeezed, and he has lost.

The second story is mine. Early in my career as a real estate investor I was married, had children and a mortgage. It was a time period where the business cycle had quickly shifted. I was working hard, but my income had catered. What made matters worse was half my income was coming from a single client. This client had a habit of exploding into screaming tyraids directed toward me. I couldn’t lose this client because I was barely able to pay my bills, and he knew it. Unfortunately,he continued to pile whatever indignities on me he wanted to. I was being squeezed and I didn’t like it one damn bit. 

There was a lot I didn’t know about in the world at that young age, but I did know about the Rob’s in the world, and was determined I was not going to end up a Rob. I suffered further indignities through the years, but I had a plan so I was able to endure. Like Rob, as I became more successful, the expectations became higher, more demanding, and more time consuming. Like Rob, I struggled more and more to have a life outside of 24/7 work. Like Rob, I had to tolerate this because I was not financially free. I had children to feed, to educate, and in the case of my handicapped daughter, help provide for the rest of her life.

For me, it all worked out, and here’s why. Early in my career, I decided on the following:

#1  Independence was far more important to me than material possessions. We would live in an older home which could be paid off quickly. Transportation would be to drive an older used vehicle. I would refinish furniture that we got for free for our home, and so it goes.

#2  There would always be a “go to hell account.”

#3  I continued to fund my retirement, letting time and compounding work for me.

#4  Development of different streams of passive income from investments to protect me from the whims of my customers.

#5  Numbers 1 through 4 would be well on the way to becoming reality before I would let luxuries start drifting into our life.

Following these principles helped me to extract myself out of the Rob cycle and become financially free. Doing so allowed me to recognize when a squeeze was being attempted, but was quickly solved when it was understood they had no leverage over me. This kind of independence is extremely liberating. It opens up a world of options and helps you live with dignity. No, I don’t own the most expensive home in town, but for me, the trade-off has been worth it. Hoping it will all work out is NOT a plan. Decide today if financial freedom is the plan for you!
“If you do not change direction, you may end up where you are heading.”  ~ Lao Tzu