160-Friday Q&A: Career Planning For Ideological Changes and How To Budget for an Irregular IncoJun 10, 2021
Radical Personal Finance has 100 percent support from listeners. This allows me to offer you the program without commercials and without conflicts of interest to learn more about how you can support the program even with as little as a dollar a month and some of the benefits of By doing so, go to the radical personal finance committee/patron today in the program. Let's dive into some questions and answers from Friday. I have two questions lined up, number one, Joshua. I have had an
ideologicalchange of mind and I can no longer do my job. a clear conscience how can I transition to another
income fluctuates a lot how do I plan for a fluctuating
income? welcome to the radical personal finance podcast my name is Joshua Sheets and this is the show for Friday February 27, 2015 It won't be released on Friday but it is the show for Friday as the promised life gets in the way sometimes and sometimes you have to make adjustments and that's what we're doing, but I have a good one for you, it's useful to learn. from other people's experiences and that's what we're going to do today. I really love doing these Friday trivia shows because throughout my life I have learned a lot from listening to other people's scenarios and stories.
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160 friday q a career planning for ideological changes and how to budget for an irregular inco...
There is something to be said for simply learning from someone. Otherwise, it is often easier to see what other people should do than to see what you should do. I know it's very easy for me to see what other people should do, but not so easy to see what I should do in my own situation, I'm sure it's the same for you, that's why these Friday shows I think which are super valuable, very fast, when we started last night we had the first Google Hangout for the sponsors of the program and I want to thank everyone.
You guys who came, it was an amazing experience for me, I really enjoyed it. I know many of you were unintentionally excluded from the Hangout. I apologize. There are two types of Google Hangouts that the Google Hangouts system has. One of them has a system where you can let everyone in and everyone can video chat and video conference and that has a total of ten people that can be admitted on that call. The other one is Google Live where it essentially streams videos of me to the internet and you can chat in a chat room but it doesn't allow everyone to be seen so I was trying to start Google Live and I practiced ahead of time and I had everything ready but I ended up somehow .
I still can't understand how I did it. You accidentally launched a Google Hangout that allowed only 10 people into the Google Hangout and several of you got locked out, so I apologize to those of you who got locked out. It was a really fun experience for me to be able to interact with 10 of you. Being face to face and answering your questions and seeing your face and for us all to see each other, that was super fun in the future it will be more of a scenario where I think you can see me and you will. I'll answer questions you guys ask in a chat room type environment, but we'll have that figured out for next month, so thanks to everyone who came.
I really enjoyed doing it with you. I actually did it and then I also, so I guess I connected the Patreon account here in a couple of ways to make those Google Hangouts available to everyone who supports the show at ten dollars a month or more, so every month I do it I will do. a Google Hangout for all fans of the show who support the show for ten dollars a month or more. There are a lot of other benefits too, but that's one of the main benefits you get at that level and I'll get back to you.
I will try to answer all your questions. I will try to give you as many details as I can and today also in a Friday Q&A show. If you support the program for five dollars a month or more, your questions will be at the forefront. of the line, so I'll get your questions before questions from other people on the boat on Friday's Q&A show. At this point I have too many questions to answer them all on the show and more are coming all the time which is great so I think this will help prioritize it and I think it's enough in a pretty ethical way where you know I'm not saying I'm not going to answer everyone's questions.
I'm not saying I won't respond. Please respond to anyone who isn't a patron of the show, but it helps me to have a way to change the flow of questions a little, so I invite you to go to the radical personal finance community/patrons. You can see all those benefits, so enough advertising. let's get to the questions the first question comes from Bill and Bill has a question about
planning. He writes me this question. Joshua. The reason I write has nothing to do with finances, but everything to do with professional advice. Did you provide professional advice or else?
Can you at least recommend someone you trust? I thought I heard you mention on a previous show that you were involved in that line of work, but unless I'm mistaken and I may have been a brief guest, I'm 32 years old. years, a recent MBA graduate, and a truly unique professional background that makes career transitions exceptionally difficult. Suppose it was a client of yours who was considering a career change with a radical fifty percent pay cut. There are enormous financial and emotional considerations at play with such a career chain to be consistent with my financial goals. I have been working in a specific industry since I started straight out of college.
I have recently experienced an
ideologicalconversion to a different system of thought and now I I face some cognitive dissonance about what I do. In fact, this is why I went back to school to get my master's degree a couple of years ago. I thought the NBA could help me hit the reset button on my career, but the job market hasn't. He hasn't been nice to me. I've applied to all kinds of jobs that I thought were similar enough to the work I currently do. Unfortunately, I find myself caught between a rock and a hard place.
I'm too old to be considered for inferiors. Step Entry Positions I am also too inexperienced to be considered for senior or mid-level positions. They consider me a liability. Recruiters think I won't last long if they hire me at a lower level. Recruiters think I won't do it. last a long time if I'm brought into a new environment or industry, I'm stuck and hoping to talk to someone who can help me do two things: better understand what marketable skills I have and better understand what jobs out there are the best fit for my skills and it becomes a little crazier because of the confidentiality agreements I've signed.
I cannot fully reveal the exact nature of my abilities. This is perhaps the real problem that makes this ordeal so much more difficult than it normally would be. For others changing careers, what are your thoughts? Bill Bill is an interesting question and I'll give you some references and some resources at the end, but first I want to give you some ideas, some things to consider. I have a theme. which I continually refer to in my mind. I've been
planningto do a whole show on this. I don't remember where it came from. It may have come from the books of Charles Hugh Smith.
I'm not sure where it came from, but the point is how can I focus on working comfortably instead of retiring comfortably and this is probably if you think this show is about retirement or early retirement or something, that may sound like a disconnect to you, but I think that both of these things are important and I think that whenever we have a professional crisis, we should first, in essence, focus on fixing that the reality is that most of us will spend more time in our lives working for an income than any other occupation or any other work activity.
In fact, doing it and thinking about it consumes a huge percentage of our time and as such will have a greater impact on our lives than anything else, and it has for me and since I have sort of almost a small meeting informal. rule if there is a problem with our career or our job or income our job our business whatever you want to call it that will almost always be the first priority and it's important to change our way of thinking and not be so focused on this idea of how can we do something that really I don't like it and just so I can accumulate a lot of money and retire comfortably in the future and just focus on working comfortably and again I wish I could remember who I'm supposed to attribute. giving me that phrase, you know, I'll leave it as my own, I guess, because I can't remember if any of you know, I don't know, I mean, it's kind of, it's not really original to anyone, but remember. this focus always on working comfortably, not retiring comfortably and then you've essentially achieved what most people are trying to achieve through retirement.
Now I, personally, was not always like this. I used to be very focused on income and how to do it well and how. You know, I'm the highest earner, but I've changed after years of doing financial planning and meeting real people and talking about their money as far as I'm concerned. I have cracked the money code. I have cracked the code. and I don't care much about gross income. I don't care much about the salary number. It is not the most important. Yes it matters, but it is not the most important thing. Remember that you can build. in today's modern world a life that is comfortable in every way that has all the comforts of every kind a life that is abundant and simply wonderful for not a lot of money and you can also spend a lot of money on a life that is actually not so It's really not that comfortable, so focusing primarily on salary income is not a valid approach.
Excuse me, sir, it is a valid approach, but it is not the only thing. I think a better approach is to say how can I optimize my way of earning and then do the planning on the back end, the challenge is this: if a career doesn't fit your personal ideology, it can't possibly be world class. In that, which leads to you needing to change your ideology or you need to change your career, there are a few ways to do this and I would say first, one change that I think is good is to change the way you think about the nature of your career.
I am not defined by what I do. make a living regardless of how people want to define me, I refuse to fit into that definition, there are many things I can do to make a living and these things do not define me if I am Mr. Successful Financial Planning Guru or if I am, you know, a world-class podcast host, if I'm a guy you know what the most menial task is. I'm a guy who cleans toilets for a living or I'm a guy who swings a hammer for a living or I'm a guy who digs a ditch or who delivers pizzas I'm still the same guy I'll tell you one of my favorite scenes from a movie ever I loved the movie with Harrison Ford called Sabrina and there is a character in that movie I have seen it a couple of times, my wife and I really enjoyed the movie and the character in that movie that I would most aspire to be like when I was younger would have been whatever I think the month was called.
Linus, who was the main character, the hero, the movie, the great businessman, who was who I wanted to be when I was younger these days. I want to be the driver. If you're not familiar with the movie, there is a driver and a chauffeur. In the movie he takes a job, it's clear at the end of the movie it's made clear that he takes the job as a driver, so it gives him time to read and learn, and every time you see him in the movie, he's either driving or sitting. at home surrounded by his books and the natural result is that when he drives the car, when he waits for his passengers, he has time to read and that's why he chose that career and it's funny to me because that's what I would prefer to make that decision and simply having time to dedicate myself to the things that interest me and having enough money to support myself.
I say this simply because I am not defined by what I do for a living and you are not ours either. Our culture would love to define you that way. Our culture would love to define you as a cog in an economic machine. It isn't true. You are not. I'm not. We are not humans doing or being humans. There is a big difference now historically around the world. In the history of civilization we all did more or less the same thing a hundred years ago, the vast majority of us worked on the land and made our livelihoods through the land, does that mean we weren't different because we all did the same thing? ?
We were incredibly different, as far as I'm concerned we just do the same thing. My career is simply a financing mechanism for my life. It's nice if I can do that and make a nice living. That's really ideal, but it's not a guarantee and it doesn't define me it's simply a financing mechanism now it's taken me a little while. I didn't have the confidence years ago to declare it as freely as I can declare it now. Memorywhen I got out of college and I had the fancy-sounding job with a fancy-sounding title. It could sound really cool and I got to the point where I didn't like doing work that sounded fancy.
I didn't like it, no matter how fancy the title was. I realized that I don't really care. I don't need to be judged by someone else's social ranking system. My favorite sayings. I reject your reality and substitute my own, so I simply see a career as a funding mechanism for my life. That's all. If you change the way you think about it, I think you can eliminate some of the fear and some of the associated baggage of emotions that is built into our careers. Remember this, we are trained and conditioned as aggressive young people, you know, career-minded people.
We spend all our time thinking about our career, after all, a common meme and society is that the purpose of education is to prepare you for your career. . If you don't graduate from high school, you won't be able to get a good job. I heard that we. has job counselors and career counselors starting in Tokyo from the initial age and then that turned into getting a good job because you have a high school degree which turned into getting into a good university so you can get a good job so He spent 12 years preparing for college. and we spend four or more years preparing in college to get a good job, then once we get a good job, we're supposed to build our resume and you spend all your time focusing on getting a good job on managing your career and you forget about your life it's a waste of time it's a total waste of time now you need to support yourself yes smart career management makes the play a role yes I probably couldn't be doing what I'm doing now if I did I would have done a bit of a smart job of managing my previous career, so I'm not saying to throw that out the window.
I'm saying adjust your priority and realize that it may have been difficult, you may have to undo decades of training and I thought it's all about the race, it's all about the race, that's hard, but if you get there There, having been trapped in that career mindset and then, I suppose, also having been freed from it, it's quite liberating to realize that there are thousands of things that I could very happily do because I'm not identified by my career. I don't care if that's running a surf bar and you know Nicaragua or if that's running a hostel in Turkey or if that's starting a business and working as an insurance agent and Hong Kong or if it's working as an urban farmer in Atlanta, Georgia, It doesn't matter.
I can build something great in any of those areas, so I know I'm probably working too long, but they are important factors that we are afraid of ruining our careers. We were afraid of more perfect resumes. People say, I want to take a year off and travel or I want to take two years off and travel, but I'm worried about what that will do. resume your kind of duty resume everyone you interview that's what they'll be interested in because you had the guts to say forget this, I'm going to follow my own path and chart my own course, I'm going to go Traveling now makes you be a highly qualified candidate, probably not because you show a more independent streak and may not fit as well as someone with pressure, but for the right employer that ability to think for yourself will be a sell.
Remember, I think most employers are at least in a small enough business where the business owner can have contact with many of the employees. Job skills are relatively easy to train. Character skills are not easy to train for all the business owners I am with. I have interacted I think most of them would prefer to have someone who had little experience in a specific area, but we are very trustworthy in their personal character because you can train most of the things you need to do, it is difficult to train someone's character flaws . so change and adjust and just acknowledge at least your way of thinking about the nature of your career.
How many people change their ideologies to suit their career? Many people do. You know I had to do it. I had to think about this for a long time. For example, when I was done with the world of financial planning, one of the biggest things I really struggled with. I really struggled with my ideology before I became financial planning about certain types of insurance, specifically whole life insurance, because I had an ideology that whole life insurance. It was never an acceptable financial product and that's what I spent several interviews trying to figure out right, then I had to leave and I recognize that it wasn't necessarily the career that was wrong, but that my ideology was misinformed, there were many things that I didn't understand.
I knew and once I understood that I could change my ideology and then enter a new career with an ethical basis, some people maybe need to learn something about a career, so just review your ideology and ask yourself: am I really violating something that is important? If so, change the major. If not, the ideology could change. If you don't want to change the ideology or you can't change the career. There were thousands of races that I just couldn't do. stand out for various reasons, from the mundane to the big enough, you know. I have always been fascinated by road transport since I was a child.
I wanted to be a highway truck driver. I thought that was how it would be. the best job in the world probably most little bully kids do it but I couldn't do that today in good conscience I couldn't do it it would destroy my family and I wouldn't do it I'm not willing to do it That's right, I'm just not willing to consider that as an option, although I always thought it would be fun, by the way, for some of you it's not a bad retirement plan. I talk to some people who are husband and wife trucking teams. and they specialize and speed up transportation or something that you have to get to, but then there are other times where they can hang out and live in their truck and make quite a bit of money for both of them. with low living expenses and in a few years they have been able to save their retirement.
I wish I could include some of them in the program. If any of you know someone who has a story like that, please let me know. I have spoken with him. some in person, but I've never been able to find anyone I can bring on the show, but it's kind of a potential retirement plan if you end up broke and bankrupt at age 55, well, maybe you'll hit the road like the team does of trucks. that for six or seven years you save all your money and you can change your future, but I couldn't, I couldn't be a highway truck or I couldn't, I couldn't work and I couldn't serve in the military I couldn't work for the federal government to Even though I thought it would be cool as a kid, when as a kid I always loved reading spy novels and novels about that, I thought it would be what the kid didn't I probably thought it would be fun to be a CIA agent or Jason Bourne or Jack Ryan and for me I always loved Tom Clancy and how it would be funny and later on, you know, as an adult, I just evaluated it as an adult. because of romance I realized that I could never serve in that capacity with my ethics in my belief system I couldn't do it without saying other people can't do it I couldn't do it so I could never excel at it so I could never do that if If I were in it, I would have to change my career, so you might have to change some of that kind of stuff and it's not that bad to change a career.
A couple of pieces, some good career advice that you have really helped me and one of them had just mentioned this on last night's Google Hangout with the show's listeners. The source of this was actually John T. reads the book called Successing and in that book he makes this statement and says, "Come on, are you valuable and I appreciate not when they just tolerate you for some reason when I read that book years ago and, by the way, it's a great book. Highly recommended. It will be on my recommended reading list. I'll give it to you in a minute and I'll do it.
I put links in the show notes, but when I read his book I said, go where you're valued. and appreciated, not just tolerated, it just struck a chord. Now his example was that he started his career as an Army officer. He went to West Point and graduated from West Point. He was in the Army, I think he was in the Ranger, something well, he was an army officer, but he didn't get along in the army because he wasn't willing to play the political game and that's why his military career, although you know. He certainly had an honorable discharge and there are no known external marks of that, but his military career was substantially short and quite miserable, as he tells it, simply because he was not willing to compromise to adapt to the environment around him, so he was destined not to. succeed in that context, but over time he was able to transition into a different career when he actually moved first into the career of a real estate investor and then into the career of a self-help author who writes self-help books and how-to tutorials. to books and exactly the same quality of character that made him persona non grata in the army made him loved, valued and appreciated in his career as an author of instruction books, the same person, a different setting that was a great thought for me because I'm real.
I have realized that, for example, in the world of conventional financial planning, I am more tolerated as a person and people appreciate certain things, but I am more tolerated than appreciated and valued. A bit nonconformist. I have a bit of an independent streak. I have strong ideas and a strong ideology behind certain things and sometimes that works and sometimes it doesn't, but in a world like this, in the world of radical personal finance, that same character trait instead of just being a Joshua. someone who holds that same character trait can make me someone that people appreciate may not agree with me usually I can give you enough free time, give you something that you don't agree with me about, but at least you can understand and appreciate it and I can improve it.
If you're thinking a little, I get emails all the time from listeners saying I just like listening to your show because my ideas challenge me, so that's a strength of the mice, just a trait of my character that's reflected in the world. around, let's go through that book to give you some recommendations in a minute, but if you're in a place where your ideology doesn't fit what you're doing, you need to get out, you need to get out and go where you're valued and loved and appreciated not just tolerated where you would be where you would be loved and appreciated tolerate well that would be where it seems like you need some time to discover and get to know yourself I don't know a better way to do this than to spend a lot of time journaling what careers sound like fun, you know, do a daily list, write down 30 jobs that you find super fun and super interesting, you know, if I were making that list, there would be all kinds of weird things that I was into recently kind of mentoring, one point with a young man that I've been mentoring a little bit and we were talking about this and for me, yes I really have these lists, but there would be things on there from everything from being a commercial marine fishing captain, you know, working at a Starbucks restaurant, running a beef ranch or building a financial planning empire, those things may seem desperate to someone on the outside, but I actually know specifically why each of those four different occupations appeals to me intensely now.
I don't know, some people said why the hell would you want one. I know the reasons, so you should know those reasons, so start by making lists, write down what jobs sound fun, what careers sound interesting, and then look at them and look for the commonalities. What happens is that we often look for an external solution to our problems instead of understanding who we are and what we want. We spent so much time and I've done it. I have been guilty. We've spent a lot of time looking for someone else to tell us what to do.
We don't just sit back and say what we think is right. Do I think we spend a lot of time journaling? You know, what are they? scales that what skills you have what things you like sounds a little vain but it's really important many people have no idea, especially you sound like a motivated person go get your MBA get a job at a university if you ever stop to really ask yourself what what kind of person you are the good thing is that you are only 32 years old the bad thing is when you are 70 years old and you realize that you have spent 40 years practicing medicine because your mom said that would be a good career for you and then the reality was that you wanted to go and I don't know travel the world like a wandering artist find out who you are and yeah, I think some people can help, but things can help, there's all kinds of interesting things. personality tests you can take some of them may be useful some of them may not be useful now hereThis is the key, although you need to do an evaluation of the market and discover what the market wants.
I often get very nervous about some of the professional advice. I'm here because we are always focusing, sometimes it seems like we focus too much on ourselves and what we like and want to do, and not enough on what the market wants and needs, supply has to meet demand, that it's reality. how the market works, then you need to look at the market and say, how could I use these skills and use this knowledge and use this skill and use these interests and use these natural inclinations and inclinations and apply them to a demand that exists in the market? market, so you know, I love to observe trends.
I love teaching, it would be an example. I like teaching kabhi ous, but I have no interest in entering formal academia. The academy is dying, it will be very slow and very long. -I lived, but I wouldn't fit well in academia and if I were there, the trend is down, so I want to be here at the forefront of the so-called new media, where the trend is up, so look at the trends. and finding out where my supply of labor, ideas, skills and knowledge is, where it meets the demand that is in the market, if you spend a lot of time searching and thinking you should be able to find a lot of common ground and who you are. what you've learned and what you've already applied and you should be able to develop those skills that are transferable, you have a lot of skills that are transferable to any industry, you know, example.
I use myself as an example because probably at this point and by listening you show that you know me a little bit and sometimes it's easier to see an example in someone else, but you know my sales. The skills are transferable to any industry. The things I have learned in sales of financial products. That's transferable. I don't care if I'm selling cars, airplanes, boats, dog food, or Cutco knives. Selling is a very simple process once you get the hang of it. All you need to do is simply figure out what product you're going to sell, figure out who wants that product, and figure out how to wait to reach those people and convey the value of your product to them, that's it.
You need to know about sales now, of course, the permutations of that are infinitely complex, but it's a very simple process, measure the inputs, measure the output to adjust the inputs, see how that affects the outputs made, create a tracking system , create a The system to produce those results and connect the product with people who need and value that product is very transferable and that's why I wanted to learn sales originally when I was building my career, since I said that sales highly compensated for a very skill set. difficult to learn and infinitely transferable to all businesses, no matter if you work for someone else who works for me, so I set out to learn sales, my investing skills are transferable to any industry, yes, for example, I always thought it would be fun work for some kind of international mutual fund o I love to travel and I like business and I like to discover things about industries and look at trends and things like that, that's reflected in this program, so I always thought about it.
It would be so much fun to be the guy you know traveling around Thailand on a motorcycle trying to find where the Thai startups and economy are. To me, that sounds like a tremendously perfect job description for me. Now the problem is that you are stuck working for a company where generally poor analysts are incredibly overworked and in my opinion underpaid and it's not a good lifestyle, underpaid in the sense of too much work Yes, they pay well, but they just destroy the rest of my life, so I've never pursued that, but to me that sounds super fun, that's the skill of business and investing, is it transferable or not?
It's different if I'm analyzing commercial real estate or analyzing, you know, trying to find. good farmland for someone who has invested in wanting to buy farms. I have skills, experience and interest in agriculture. I have a basic knowledge and understanding and experience in business and I have a real interest in economic evidence and trends, so that's what I can do. take and I could take it out and use it to find farmland or I could build a career finding investment deals for local real estate investors if I didn't have money, all I have to do is go out and put the capital into the hard work to find deals of local real estate I know a group of investors here in West Palm Beach, where I live, that if you were to give them deals all day, the hardest thing is just finding the deals that they brought to them, they put them through their filter boom. thousands of dollars in search fees to find deals, that's a skill that can be learned and it combines sales skills by building the infrastructure for everything to work together, so once you understand what your skills are and what your interests, you can create dozens and dozens. and dozens of potential careers, many companies are very similar.
A thought I had for you when I heard your scenarios. I would say look at anti-industry for your industry. If you have had an ideological change of heart, perhaps you should attack. example of the industry you are now involved in, see this, hear this, if you pay attention to things that might be advertised in the financial media, a lot of times you hear tax defense companies advertising people who are going to go with you against the IRS, where do they do it? Those people often start, they often start with a career outside of the IRS. Now I, personally, couldn't.
It would be a violation of my conscience right now to want to go work for the IRS, but I could. go to work and be a tax defender and have a great mix between my ideology, what I enjoy and my skills, and a group of people do that, work for the IRS and then transfer to an attack defense company of some kind and they represent people who were in combat with the IRS, so is there an anti-industry? Another example occurs to me. I don't know if you are familiar. There's a guy online. You can consult it at some point.
His name is Barry Cooper and he started out as a. narcotics officer and he was working at our top and in the narcotics group for some law enforcement organization, some local police department. I think if you believe the public relations legend of him, he was highly decorated and very successful as a narcotics officer, he changed his mind. One day he sat down and asked: Why the hell am I spending all my time arresting people who just do drugs? What is the ethical basis for arresting people who use drugs? And he changed and now it's the whole anti-narcotics website and stuff. provides expert witness testimony is a comprehensive site called "never get arrested" where he teaches people how to avoid drug laws how to avoid getting arrested for drug violations how to avoid prosecution how to get out how to separate legal cases he has built a business on it Now I don't know how accessible my point is to look for the industry before for the industry that you have the ideological heart of, there is nothing more obvious than going from being an official narcotics police officer to representing everyone against narcotics violations and having a website where you teach people on YouTube videos where you teach people how to not get arrested for drug violations years ago.
I remember reading a book called by John Perkins called Confessions of an Economic Hitman in essence. Perkins describes in his book that his job for years and years was to travel the world as an agent for various organizations (the World Bank simply traveled the world as an agent for various financial institutions and arranging agreements with various countries around the world to finance deals through the World Bank and through the USAID program and established financial agreements with them, but the objective of his work the final effect and the objective of his work was to create a system of pressure that the United States could exert on those countries for beyond of the political goals of the United States, well, he does this for years and then, according to his book and according to his history, he finally decides, you know, this is not right, I'm going to change this, at which point he goes out and writes. the confessions of a cheap hitman and it becomes the kind of ante-political manipulation that exposes what he was previously doing and leads the charge against him, so whether it's Barry Cooper or John Perkins or more recently Edward Snowden, you know how to work for the enemy and then go out and expose. the enemy or if it's Hannah Julian Assange is not a great example, but remember, by the way, remember when you become the anti-industry Bradley Manning, the guy who provided all the documents for Julian Assange and the Wikileaks stuff, those guys in jail, so be careful what you find yourself in jail?
My point is: is there any way you can leverage your anti-industry experience for the industry that you now ideologically oppose? I would also say look for work in the non-public and unpublished job market. first you talked to amazing recruiters, that's a whole topic in itself how to work effectively with a recruiter. I like the idea of using recruiters to find work, but if you're not finding a good job, a good fit with a recruiter, or you're not finding success, then you need to create an opportunity for yourself. Easy, this is this man. If you are not qualified for the job, stop looking for work and go start a business.
He sounds stupid, but he's not. Here he has an interesting thought process for you. What would you do if you were an illegal immigrant in the United States of America and did not have the ability to obtain a job legally? How would you do that? I have worked with many of them in the agricultural industry when I was younger and was now fascinated. Because of this, but one of the things you find is that often you just start a business. What would you do if you were an ex-convict and had a criminal record in your past that made it difficult for you to find a job? one of the things you could do is just look for something where that's not a factor and there are tons of industries where you can do this, there's beer, there's very well known and consistent industries, I mean half of the real estate agents that have A real estate sales business started because they didn't know what to do and they could go out and spend some time studying and get a real estate license and start making things happen, so I don't know if that's of interest, but It's like half. people who are involved in multi level marketing companies have done the exact same thing, they needed a skill and someone came and said here's a product, sell it, so if you've worked with people who are fascinating to me, there are product reps who just Someone comes out and look for products and then sell things and no one told them they could, they just set it up and made the deal happen or, you know, start a business, there are all kinds of businesses, I mean, don't limit yourself to one.
Something specific is what happens if you are a corporate employee; You may just be looking at it from that perspective and you're completely forgetting to just go out and create an opportunity for yourself. If you go back and listen to all the shows I've done, you'll find tons of examples of things like this. Remember I interviewed a guy. Was it Ryan Finley? uh who makes a living buying and selling things on Craigslist and makes a good living the way he took it for a while, but he's great. He lives buying and selling appliances on Craigslist and now runs an information marketing business where he teaches other people how to do that, you could do it with that, you could do it with anything, the other side of the coin is creating an opportunity for yourself, another way to do it.
It's just walk into any other industry, any industry you're interested in, at any level, show up and work hard and you'll quickly get promoted and advance to the place you need to be and deserve based on your skills and qualifications and work as long as you don't. you are working in the government. Government is the only place where performance is actually not the basis of promotion. You just have to show up, you know, show up and keep going to get it. Basically, but as long as you're not in a government entity, you can start at almost any level and if you show ability, hard work, work ethic, integrity, character and all that good stuff, I'm sure you'll advance quickly and actually I would say that you should concentrate on the industry you want to be in and then just get in, establish yourself and once you are in the industry, everything will be a For you it is much simpler something else: you are looking for a job and that is why you have to start with skills and talents and you know what interests you have, just sell your way.
In my opinion, it is a real shame that we will not be teaching sales skills to two young people as far as I am concerned. We should eliminate half of trigonometry or all year of trigonometry and teachsales skills. I think we would be much more effective, happy, successful, rich and better. adapted adults if we did that but we don't teach sales skills we teach resumes and we have classes in college on how to write a resume writing a resume trying to get a job with a resume is like trying to go out and sell it, you know, sell a Ferrari with the written brochure you don't sell a Ferrari with a brochure you sell a Ferrari by throwing the keys to a rich man and telling him come in and see how a resume sounds, it might be a necessary box to check but it's not the way to sell a job is to leave and create an opportunity for yourself, so if you're going to do this, you need to know your target industry, you need to network.
I need to sit down and make a list of are there any? company or your number of companies let me use as an example, let's use my example of IRS industry versus IRS aunt, let's say you are working for the IRS and you say I don't want to be a revenue agent anymore, but I would really like to exchange rate because I have had an ideological change of mind, by the way, I have no problem with tax agents for other people. I have some friends and actually clients, ex-clients who are tax agents, no problem, I'm just saying that would be it for me.
It wouldn't be a good fit, but let's say you want to go from being a revenue agent for the IRS to something else, what you need to do is make a list of all the skills and resources that you have and make a list of all the companies that are leaders in that space, do your research and identify which companies you really want to work for, which ones have a good reputation, which ones are doing a good job, which ones are behaving ethically. take that short list, figure out who of these companies I need to meet with and if I need to know and you sit down and call whether they are small or medium sized companies, you call the CEOs of each of them. one of those companies and you tell them to listen.
I am currently working in this capacity with the IRS. Now I want to transition and I want to work with you. I don't know.If you are hiring, I would like to stop by and give you the opportunity to share with you a little of my story and see if I can fit freely in the future, when you have opportunities, don't wait for a job. publish and apply, it's too late, educate yourself in advance or at least get on the network list your way and learn how to promote your way, you know, start a whole business and start a whole website about it, do something make it taste flashy and unusual, there are dozens and dozens of ways to do this depending on the amount of time you have, but it all comes back to the things I've talked about tons of times become a leader in your field establish your reputation in the market create yourself a way to be in high demand if you spend more time thinking about it and less time thinking about how to write a cover letter effectively.
I think so, the cover letter could be important because remember the business owner has the text. Check the box so that the Employment Opportunities Commission, implicitly equal, does not bother them, which is why they advertise jobs. I am convinced that half of the jobs are advertised purely as good publicity simply so that the head of HR can't be fired or have any legal standing. but man, I've never gotten a job off of a job posting and I've never seen anyone get a job off of the job posting you're working on and here's the problem, even if the company is legitimately advertising. for a job and I'm not saying they aren't, you are competing at the point of massive competition instead of creating the demand from the beginning, give an example.
I have this. I've had this conversation with people in the financial planning industry and Very few people understand the big focus and I think that's right, but the big focus is how to get leads in the financial planning industry so everyone always They focus on it, whether it's in whatever aspect you are in, if you know yourself. if you're selling insurance or if you're doing, you know, some kind of in-depth planning, a plus in my experience. You generally wouldn't want what most people market as leads if you are in the financial planning business if you sign up for The information on the website you will immediately get on a list of potential clients and they will sell to you, so Agents and representatives sometimes have to go out and buy a list of leads and it can't work, yes it can work.
I want to clarify one thing here when I say potential client, I mean an unqualified or only moderately qualified potential client, someone who doesn't really know much about me but is interested in continuing with the insurance, someone who wants to buy life insurance put information on an online website for a quote they are interested in a quote and that's it I'm not talking about someone who listens to radical personal finance for an hour and a half a day and who knows me and who knows everything about me and then comes to me looking for information that is not a lead that is a highly qualified lead if you were doing that type of planning business just stick with a lead I hate working with leads I hate you I hate you I hate you I hate you I know why, because now I'm competing.
I'm competing with two, three or 15 other insurance agents and somehow I have to beat them. I have to do some kind of dog and pony show 100 percent of the time. I have to build my business on that foundation. One hundred percent of the time I would say no and work with people who have no idea they want to buy life insurance. Now I would approach them out of the blue. Cold call and approach them out of the blue and talk to them about life insurance and then through some skillful discussions and some good questions and a good discussion, ask them if they have any interest in purchasing life insurance because now they only It's me and me.
I'm not in competition, well the same is finding a job, if I go out and apply for a job and there are dozens of other highly qualified applicants, I will now be ranked based on stupid criteria, like if I went to a more prestigious company. college or university than the other, whether I have an MBA after my name or not. I would rather go out and create an opportunity where there is no competition, find what I want to do, go out and find who needs what I want. do and show them that I can do it even if I had to work for free for two months and prove it to them instead of following the stuck mechanism of, you know, responding to job ads on monster.com, that's not it.
I can't work, I just don't, I have no interest in trying in that world, so I would suggest that my plan be a bit. I don't know for me it's better, but you know your mileage may vary, take a look at a couple of very important technical ideas for your number one. You have to have a solid financial plan and this is what I mean: Y'all, your ability to do these things is built and dependent on your flexibility, so do it. you have money you have savings if you don't have savings and you recognize that you are at a point of professional transition stop any type of external investment and save money and accumulate money if you have debt pay off your debt because when you talked about taking a fifty percent pay cut if you are spending ninety percent of your income taking a fifty percent pay cut there is no possible way to do it unless you get rid of a bunch of debt and reduce your expenses, but if you are spending twenty percent of your income or you could live on twenty percent of your current income in another scenario, then yes, take a fifty percent cut any day, especially if you're going into a career where you really want to be a leader and you can move on from that pay cut of fifty percent in the next three or four years to earn double, triple or quadruple what you are currently making in your current job, but if you eliminate all fixed obligations to pay off your debt, you have savings and are flexible in your lifestyle, you know maybe you can, so you can look at it as a comprehensive transition, you know, if you move from New York City to rural Mississippi and earn your income online, you might be able to build a style of a much better life and a lot less money, so there are some very practical financial planning steps to consider on this journey, a couple of book recommendations and I hope this has been helpful to you and I hope these are just some ideas for wake up your thinking realistically I can't solve your problem but you can just apply a system of discipline, focus, systematic thinking, ask yourself if I were the president of this company and I was putting all my MBA knowledge into practice, how would I do this and would I train? yourself through the process here are some books that might help you the most obvious and a good entry level to a great one is Dan Miller's book 48 days the work you love some resonates with sums there are many of you who know work books conventional this is one that is like what color is your parachute it is another famous read them just look for inspiration but it does a good job it is a good podcast if you are interested in professional topics I have listened to it a little here and there and so Check out the work by Dan Miller, has a group of career coaches, does some career coaching, certifies career coaches and I think there's probably a lot of value for career coaches and there may be a lot of value for you in that context.
Next check out John T. Reads Books More Than She is a good general book, really good, it doesn't specifically talk about the job market but it does a little bit and I've really enjoyed it since I mentioned it, let me add it to the list, this good book. James Altucher I wrote a book last year or a year before called "choose yourself." It's really an unusual and interesting book, but it emphasizes simply choosing what you want to do, choosing yourself. It's worth reading. I enjoyed it when I read it and then Well, it's pretty deep and pretty meaty, but it's a well-written book.
I don't really enjoy fluffy books because they're often very fluffy and pack a punch at one point, but the best book I've found is this one. Kind of a complete textbook on how to find a job is by a guy named Charles Hugh Smith and his book on this topic is called Get a Job, Build a Real Career and Challenge a Bewildering Economy. It's kind of a comprehensive look at the whole idea of how to find a job. get a job, build a real career and how to challenge that job economics, so check out that book.
I'll make sure there are links in the show notes, but men listen, there's a world of amazing opportunities out there right now, so I say just start and pick something you're passionate about and go, focus on it, go change the world, choose something that interests you and I close this question with this scenario years ago, I don't know where I heard it, someone described the concept of a hallway to me and it has been a useful concept and the idea is that sometimes we open a door and look into a long hallway and we don't see anything except we're a little scared to start walking down that hallway and so Sometimes we don't do anything, we just sit and sit and sit and sit and sit and sit and sit and sit , but if you were to stop sitting and take a step forward and start walking, suddenly there is a door. and you didn't see it from the end of the hallway but now you see the door and you can open it and you can look through it and see what's interesting on the other side, maybe there's nothing there, in which case you close it. you keep moving on to the next one or maybe you go down that hallway or you go into that room or whatever it is, the point is that if you start moving whatever things seem to happen, exposure creates opportunities like a former boss of mine rhythm in my Daily exposure to the head creates opportunities, it's kind of funny when I started radical personal finance.
I had no idea, I'm still pretty much figuring things out, but I really know what I'm doing. I had an idea, but man. I've had so many opportunities come my way since I've done it, but they wouldn't have come if I hadn't taken action, so just get started and start exploring, start reaching out to people, start networking if you're in a target industry. I start to write. list of target industries I start talking to people you know I do a podcast about your job search call people and say, hey, listen, you know, I'm trying to figure out what it is that you like about your job or I'm trying to find out what it is The right thing for me is to write a series of blogs about it, do something and suddenly some opportunities will arise that you will be very excited about, but if you are in a situation where you are hurting your conscience every day with what You are doing.
You have to get out, otherwise you will end up in an unhealthy place. Hope that helps, man. It's okay, thenext question is good. Two. I had two questions for today. She knew one would last a while. The next question comes from Brendan, he says: Hi Joshua, thank you very much for the program. It really helped me and my fiancé get our finances in order and start thinking about how we could be financially independent even as a Canadian. I have gotten a lot out of the program and I have tried to engage as many people as possible.
Thanks Brendan, that's a great deal. Any of you want to help the program, the most important thing you can do is tell people about it, tell them about the program, and then tell them. they just go to the app store and search for radical personal finance and you can listen, it's very easy, just go to the app store, search for radical personal finance and continue. I was wondering if you could mention some tips and tricks for someone who doesn't do video work for a consistent or regular income and while it's consistent right now, I've spent most of my career working every day in a month or so. without working for weeks at a time.
I was just curious if there might be any wisdom you can impart on those types of situations. Fortunately, my fiancee has a very stable job and makes a lot of money, so it gives us the ability to plan at least a little. Thanks again for the show. I look forward to it every time I walk the dog. on the way to work Brendan Brendan thanks for the question this is funny so I would give you two simple answers you said. I was wondering if you could mention some tips and tricks for someone who doesn't earn a steady or regular salary. income the first answer the most important one is to start earning a steady and regular income and I know it sounds a bit smart I was meant to do it a bit but I'm serious change your income from
irregularto regular income and I'll give you a Lots of thoughts on that, that would be the first way I can answer this question and I take it very seriously, although there is a bit of irony about just stopping streaming and winning. an inconsistent income it's hard to
budgetfor an inconsistent or regular income Andy it's hard to make that work so make your
irregularincome a regular income we'll talk about that number two would be yes you need to you can adjust the
budgeting system but this It's difficult, so let's focus most of our time and attention on how to change from irregular income to regular income.
The biggest thing I would focus on is simply increasing demand for your services, whatever they may be, so you can pick and choose. Schedule work when you want to have it If you just focus on that, you can solve the problem of your irregular and inconsistent income product, how do you do it right? It probably comes down to how good your product is, do you have a really great product and also how effective your marketing is and probably the disconnect that exists for most of us is how effective your marketing is, but the key is to create the demand for your products or services so you have the option to choose when and where to fill it, there is someone in your industry, no matter the industry, especially video inertia, there is someone in your industry who chooses when they want to work, become that person and you can do it in almost any business, one of my favorites, let's see, probably one of my favorite examples here would be a guy named Joe Gerard and I ran into Joe Girardi years ago, I know how I've looked into all this weird, arcane stuff and Joe Girardi is most famous for being recognized by the Guinness Book of World Records as the world's best salesman and proclaiming that loud and clear, which is incredibly good for him.
I'm Guinness, the year he finished was the last year he was awarded that, but it was amazing. He sold over 13,000 cars, uh, thirteen thousand one cars at a Chevrolet dealership between 1963 and 1978. If you're interested, that's 15 years, which means he sold an average of eight hundred and sixty-six cars per year for his entire current career. Funnily enough, I contacted him for an interview which he turned down, so I'd love if any of you know him to tell him that I'd like to interview him on the show, but for now just tell his story, but when Joe Gerard started. working he was broke and he couldn't feed his family, he says he was completely broke, he had been a total failure and he went to a car dealership and he was in Michigan and he went to a car dealership and he said listen, I need a job and the card talks about this/relates perfectly to the first question, so I'll give you some details of the story and if I'm wrong about anything it's only because I read his books last.
I know five six seven eight years ago something like that so you walk into this car dealership and say I need a job and the sales manager I'm not going to hire you says no I don't need any more people and if you don't, if you're not aware. , in the car dealership in the car sales industry, there needs to be a certain number of people who are a certain number of salespeople that you know as a ratio of people that come in because most of the salespeople get the most part of their business based on walk-ins at the dealership, people walk in, the next salesperson up there, you know, comes out and takes them and if they sell them a car, they get the commission on that car, so Joe was desperate and attacks. a deal with the guy says listen, I won't take anyone without an appointment.
I don't need any walk-ins, just give me a chance to sell some cars. I won't take anyone off the floor, so the sales manager says, okay. I guess if that's the deal, you can do it, so I think he gives him a desk upstairs and Joe Girardi goes up and starts cold calling from the white or yellow pages to sell cars and if I remember correctly, he spent the whole day cold calling. and he didn't get many clues and he just called and called and called and he was desperate and then late at night it's 7:30 at night it's something he walks down the stairs and the guy had no training he walks down the stairs since it's a customer there in the showroom he looks around and there is no one there and there are no other salesmen there so he comes up and starts helping the customer and he sells a car to the guy and he didn't know what he was doing, but he went ahead and sold the. car and that started his career, so he sold a car on his first day, but it was pure chance and there is actually a kind of technical violation of how he started, but he gave him the courage to keep going and he kept calling and calling. and calling and his memory doesn't work a few months later he had sold so many cars and all the other salesmen were jealous so the dealership ended up firing him well now he went to another dealership and that's where he worked his career at a Chevrolet dealership and The key I remember if you know anything about car sales or if you've ever talked to scar dealers, the average car salesman sells very few cars, but Joe Girardi in a year that he sold, we should have the number that sold over 1,200 or 1,300. cars one year in his career he sold 13,000 cars, that is, 866 cars per year, but it was slower at the beginning than at the end of a year.
I think he sold more than 1,300 cars, about that number and they were all as he says in his books. person to person cars, belly to belly, fair prices with people you know, fair prices without it wasn't fleet sales where he was selling two hundred cars at a time, by the way, that's not a bad strategy if you're in sales. There is an interesting story I once heard about cutting. Coe, one of the Cutco leaders who took that strategy, we'll save that for another time, but he had told the story that he had customers lining up outside his office to buy a car from Joe Girard and eventually he got to the point when there were so many people who came looking for him and who came to buy him a car, he had them lined up, he hired people and finally in the end he only sold cars by appointment, I'm serious, he only sold cars by appointment and he had people in line, he had a team of people, he had a couple of assistants that handled all the paperwork for him, he had someone who would come in when someone was going to come in and they would trade in their car and that person would do the appraisal and have all of that arranged beforehand, they'll get the financing. pre-arranged and Joe would simply make the final sale right there in his office, you'll say how the hell he did it so well, that's it, go read his books and you'll see how he did it.
Listen to it. Listen to the audio of him. He did it with a comprehensive system, for example, he sold good quality cars at a fair price. He took care of his clients. He was aggressive with his marketing and advertising it. He would go to football games and take a briefcase full of business cards and throw them everywhere, you know, you just like to throw them in the air, and he would buy Joe Gerard a car that he would send to all of his clients. . a huge stack of business cards in his glove compartment and he would tell everyone that he would call it all a coupe a couple of days later and he would say, "You know, since people have been admiring your car," who are those people and he would tell them.
I would call and stop by. a car from Joe Gerard and he would give them a great deal. He had the entire service department. In essence, he did a lot of his own servicing to make sure his customers were happy and came back every time he had a complete car. A comprehensive mailing system was created where every month every person who bought a car from him received a card from him and it would be happy new year and happy valentine's day and happy brands, whatever you do in March, April and May, and June and July, happy birthday, so they work, he was constantly the best mine, he constantly kept in touch with his clients and, to all appearances, these clients love them and, by the way, from the planning financial, an interesting financial planning tip with which he became rich. 15 years and he retired, he didn't want to do it forever, he got rich in 15 years and he retired, he saved a lot of money, he retired, he talked a little bit about companies and stuff like that after he retired, but he didn't want to do it. that for the rest of his life he was working hard, it was hard work, so what I'm saying is you can probably do that in almost any industry if you figure out how to do it, so you gotta go, the key is to go from boring, You know the same as every other video person to be at the top echelon of your field to get to the top twenty percent how do you do that?
I don't know, I don't know how you do it in your industry, but all you need to do is start studying, learning and applying what others have done and see what works and just apply, follow the roadmap that others have already followed and Apply what they have done and see if it works for you. I'll use myself as an example, so in the past I wanted to increase demand for my financial planning services and I wanted to spend less time working with people who weren't perfect for me and I wanted to spend more time working with billionaire entrepreneurs and people who were close to retiring, that's what he wanted to do and therefore one of the many motivations, partly for fun, because I didn't think I would be able to do one of the motivations to begin with. one show is, I sat down and said, do you know what would happen if Dave Ramsey did individual financial planning and financial counseling?
He would be fully engaged by morning tonight, any way he wanted to charge, he could charge ten thousand dollars an hour and he would be fully engaged. from day to night I said what did he do, he has nothing but a 20 year advantage over me so I said well I have the desire to do this show and worst case scenario the show becomes an excellent marketing vehicle for my business. Financial planning services, at best, becomes a profitable business, so focus on marketing. I started doing this and as I do it I just copy, model and learn from people who are the best in the business.
Why is my show here on Monday? until Friday is because I do gestures with Dave Ramsey and Clark Howard and Jim Cramer on television and Suze Orman is what they do, they do a show five days a week, so I'll do a show five days a week. I am studying them and applying. I am copying all the fundamentals but I am improving them. I studied Dave Ramsey's business model. I mean, where does your income come from? I looked at his products and thought, "Okay, he's got this, he's got this, how good is his business?" At this stage, you originally started with an idea, but the radio show simply serves as a means for people to find out about you, which leads them into your sales funnel, so the radio show is presented to them in a different way. for free, but he makes money from the radio show. with advertising, this is a business model, so he produces the radio show that is broadcast throughout the country, people like to listen to it, it is interesting, so he is picked up by more stations who pick him up and pay him for it, and then it is also paid for with advertising and people.
His listeners listen to his program and listen to his advertising, so inThey actually pay you for a program and then as they consume the content, at some point they say: you know what I need, there's something a little more specific. He is advertising his specific books and courses from him, so I'm going to go ahead and buy a total change of money. I am going to go ahead and buy this new book on children's finances as they go ahead and buy it well, this begins the deeper relationship between them. We're working through the sales funnel and then you're constantly on the show, you're constantly referencing your book, you're sending them to your listeners, you're referring to your courses, so you're hosting Financial Peace University classes and you're sending people to those. classes and then you create and market those classes to other demographics so you know you sell them to churches and you sell them to businesses and then you create curriculum for kids so you're building more markets to reach more people so it's all base in the core and the base. of the talk radio show but he has dozens and dozens and dozens of lines on the pronet dozens and dozens but he has more than a dozen different lines of income individual he has seminars that he attends and speaker seminars then he creates other seminars for some people to listen to how a top Dave Ramsey Empire client comes by his show, they start listening to him on the radio and his audience generates income for him from the radio station that pays for the first show and also for them by listening to his commercials, so that begins . then they go ahead and probably buy a book, they may or may not read it, but they probably buy a book and then they probably give it to their friends to buy more books, at some point they will probably go to a financial peace college class, they have a good experience there , which, by the way, is a brilliant business model because Dave Ramsey sells the curriculum and other people do all the work and he has no responsibility to pay them to do the work, so he has a bunch of people who they supervise the class because his desire to help is getting rich selling the product they're helping and he's creating and building more customers for the business is brilliant, he's absolutely brilliant, he's amazing, just, he's an amazing business guy, so They get interested, they come to a live event, a live seminar, to bring their reluctant spouse, as they usually are, then they go to a seminar, they go to teach another class, they buy more books, he serves them with four or five states of spirit. new books depending on the situation, they buy, you know, the envelopes for their envelope system and the fancy little vinyl thing that you stick in your pocket for yourself, you know, to manage your cash and he sells, then he has a completely different one. source, okay, the business owner doesn't necessarily need my information on how to get our credit card debt, but how can I show people what I'm doing with their senior leadership program, exclusive high-level events and just look at it and you? sit back and say what a brilliant business model and what a brilliant business mind, it's absolutely amazing and he's doing work that's desperately needed, the market is desperate for his work and his information and I just judged him by the numbers and By the sheer volume of his success, he is helping a lot of committed, passionate people, not only with clients, but also with his advocates, he is an evangelist and his advocates, and they would defend him and his philosophy, many of them extremely vigorously.
I know because I once did that and he steadily built an empire little by little and he's the number one guru in this space so all I'm doing is copying what he did, he didn't understand, he got there in 20 years, so I can't expect to do the same thing in 20 months, but I can get there in 20 years, so what am I doing? I create, I try to create really great written content, about real content, I try to create, I work hard, okay, that's the first thing I do. I have to do that has been working below.
I need to get paid for that written cut for that verbal content. I don't particularly want to go out and build advertisers, which is why I reached out to you, the audience, and set up the Patreon program. that allows me to get paid to create that content now, what am I trying to do on the back end while I'm trying to build the systems in the support to create the bandwidth for me to be able to create others? additional products to soothe that itch is what the audience has, as there will be additional books, additional information products, additional courses, additional seminars, who knows, at some point maybe I will find the right fit and we will start a new financial planning for me .
I don't know, so I don't know where all these things are, but what I want to say is that by understanding what the leaders are in the industry I can start, so go and do it the same way, there is someone in your field who has booked all the time, completely loud. If you're in demand, copy them, call them on the phone, and it's best if you go and find a dozen people in your industry, call them on the phone, and say, I'd like to take you to lunch. You don't know me, but I. I've been watching your sixth level of success and you certainly don't owe me, but would you be willing to let me take you out to lunch and ask you a few questions?
I really benefit from professional advice if you are willing. And who is that in your industry? It's Steven Spielberg. Will he go out to lunch? I don't know, maybe I will. Is it Phil? What's the guy who does Lord of the Rings? Do you know a big famous producer? Is he going out to lunch? I don't know, maybe he eats lunch and usually eats lunch with other people, so maybe you need to make a couple of connections. Not me, maybe you need to reach out to Sage and I don't know, but maybe TV is just the guy or A girl from the next town who has a really successful video business connects with them and learns from them, so she does it.
First is to focus on increasing demand for your services so you can schedule them consistently. Now you may have an industry that just doesn't lend itself well to being fully booked if your job is shoveling snow, you don't have any business the rest of the year when there's no snow on the ground, so that's not going to work if you're As a farmer, you will probably have a big payday in the fall when you sell your crops or your livestock at the market, if you sell jumbo jets for Boeing, your sales cycle will probably be extremely slow and extremely long, and no matter what you are doing , the world does not have the capacity or need for jumbo jets such that you can sell one every day or such that you can sell what would you know Joe Gerard if he sold twelve hundred in a year / 365 sold three and a half cars a day he probably does not have to sell three and a half jumbo jet a day, but you still have to look for consistency in your income, so if you look for it, you might be able to create it, so look at the market around you and look at what other people are doing, that's why the Landscapers do snubbull by showing snow and winter shoveling and summer mowing so they have consistency and continuity of income.
A farmer who focuses and says, "I'm tired of just getting paid every year" can develop a business model to generate cash flow year-round, so compare the business model of a guy who runs thousands of acres of corn in Iowa and you basically have to pay one day twice a year, you have one payday when you get your subsidies and one payday when you sell your corner at the market, that's Now compare him to someone like Joel Salatin, who He is something of a hero of the local agricultural movement. Joel Salatin has dozens and dozens of businesses that operate on his farm in an incredible way and they all generate income and they are all different times of the year, so he has a constant income all year round and he has built the marketing empire around that, so you can choose what you're doing and what you're selling in that business, that's what we all need to do, create all kinds of marketing services. them effectively to build the man for them and then cash in on them so that a farmer doesn't have to sit back and say, "I'm going to get my cash flow in the fall and then spend the rest of the year." round cash flow now may be some of that, maybe every year Joel Salatin I think you have a buyers club, you have books where you sell all kinds of different things, but some of your business will only be every two months, does it?
You know? This is the season when his chickens are ready and have grown and he is ready to sell them at the market. The eggs may be for a longer season, but maybe bigger chickens or a smaller season, so he builds that, looks at your business and analyzes this. Here are some ideas in the video business. I've never been in the video business so it could be that I don't have a clue, that's why I say find the people who do, but you guys are just a bunch of ideas that I made up off the top of my head, Let's say you are a great wedding videography videographer, that is your main reason, so for some reason it is feast or famine for you, either you are working every day or you are not working for a month at a time, then you What you need is some type of uncorrelated income streams and an uncorrelated asset class.
This is how we apply the principles and invest in asset allocation to a company, so maybe it's corporate work, so I'm doing This is to illustrate the point, don't get bogged down in details, but maybe all your weddings are in summer, so in the summer he works every day, but in the winter his well is empty, maybe all the corporate meetings in in your city or in the winter or the corporate conferences so you can go and do the video work there or maybe what you find is that there are no corporate conferences or corporate meetings that you can videotape in your city, but there is a lot of editing work and then you can create a scenario with someone in Florida where all the conventions that happen in Florida seem to happen in Orlando for some strange reason and they seem to happen in winter for some strange reason, uh, well.
Guess who the business executives are and Chicago wants to get out of town and they want to take their families and go to Disney World so now you have a dry winter so you build a business doing freelance editing work instead of videotaping . with your winter income maybe you'll find a business maybe it's the other way around your whole business earns nothing in the summer so you say maybe I can build a business niche making beautiful sales videos for high end real estate listings and agents Not only are high-end realtors now boring $50,000 houses for sale, maybe it's the $500,000 ones or the million-dollar ones, and you can do it for a few hundred dollars, if I'm selling a million-dollar house.
I don't know what their real estate commissions are in Canada, but in the US it's about three percent if I'm selling a million dollar house and I'm going to have a thirty thousand dollar commission a three percent commission. cent before brokers' fees and everything that comes out. I can spend 500 dollars on a beautiful video that will really improve my property and maybe that's what will work in the summer, so you build a small business doing it, you get some marketing and you get a client base of real estate agents that you love and recommend. Now you look at that and say what's another area and everyone is constantly shooting movies on their phones, but no one has time to sit down and create something special out of them, so maybe it's another business niche.
I'm going to do it. They edit home movies for the middle class and put together all the movie clips that are on their iPhones and turn them into a business, and create it and market it, and because filming is easy and editing is not, people need Christmas gifts. for their families and it's hard to know what to buy for mom who has everything she could possibly need in the world but would love a video so you market to that overly busy middle class or meet mass wealthy clients who just want to do it . What do you say, send me, upload all your files from your iPhone, you know, to this Dropbox account and I'll edit them together.
You do some post-production magic and create this beautiful film and you charge them $500 for it probably won't take you that long, you could charge a really good premium, maybe you can outsource some of your video work done externally, the initial editing and you just Add the final adjustments and you have now created a business that is active. around the holidays or have you marketed for you know Valentine's Days and you know Kenny, the Christmas job and I need the Valentine's Day job and you build this and now and that's an opportunity for you so you're building saying this is when there is famine, so how?
Can I build a business? Maybe you can figure out how to generate a steady income stream by outsourcing editing services to some top YouTubers, or better yet, here's an idea: find some local businesses and help them out. understand and implement new media and reach aagreement with them where you do the initial work, but then you get a percentage of the increased sales that comes from it, so now you want consistency and find a stable group of 20 local companies, all of which I'm going to help and Create a weekly or bi-weekly YouTube video for your marketing platform that will be well done, but you don't have to deal with it.
I desperately want to make some radical personal finance video. I desperately want to do it. I think it would be really cool. I do not have that. I haven't learned the skills yet, but I would love to. I don't have the space in my day to do it. I would love to walk. in a studio film the content and somehow split that business opportunity with a partner. No one approached me with that and I bet there are people in your city who, if you approached them, could do that. There is a big problem with things that seem easy to you.
It's incredibly intimidating and overwhelming to other people, so maybe you're great at creating productions but bad at content. I am brilliant at creating content. I'm not short of content ideas. I just don't have the bandwidth yet. I didn't make it, I will, but I don't have the bandwidth to create it, so you pick one of those and if they're not good ideas I have no idea, if they're not I haven't tried them. I made them all up in my head, but if those aren't good ideas and I find out it's a good idea and implement it, then maybe here's your real, consistent income from creating a UH, sell course that creates a business continuity product. some time when you're creating a course and maybe your vision is that you're going to be very successful at removing those iPhone clips from people's phones and charging them two hundred and ninety-nine dollars to create a home movie for mom for Christmas now you take that and you teach the local homeschooled kids how Canada probably doesn't have those you teach the local high school kids how you know how to do it themselves and now they can do it on a Saturday once a week and they can make $300 on a Saturday, that's a lot better than wasting time working at the local fast food franchise for minimum wage or maybe you'll master the real estate agent video marketing scene you know and can sell a high-priced course that teach other people how to replicate that business idea, have a membership site of some kind, so hopefully those are things that will push you to figure out what you're really into in your business and again, none of those are ideas proven in the market.
I just made them all up, but I think that kind of thinking will get you closer and the easiest way to handle the problems created by your inconsistent and irregular income will be to create regular and consistent income that is ample and in excess of what you need for your Expenses may seem a little silly, but that is the answer to your problem now as to how to change and create a budgeting system to handle irregular income. It's hard, it's probably simple, but it's not necessarily easy and I've struggled with this myself for years, so when I've done it, I've had inconsistent and irregular income since I got laid off from the corporate job I had before and went into the financial planning business.
That is why it is very difficult to make the so-called budget in this type of scenario. Now you may have to prioritize and say, "Okay, sometimes I'm going to pay this and I'm not, but it's really hard to do this monthly budget idea." I'm going to spend three thousand dollars next month, so I'm going to write it all down. I will end up with zero and have a zero based budget. It's a great idea if you make three thousand dollars a month, but what if you make thirty thousand dollars in one month and then nothing for the next four and then fifteen thousand dollars and then nothing for the next 13 months, that's why I spend so much time to the other, that is the biggest and most challenging problem now, the only way I have been able to solve it.
This problem is with a reserve account and I think you need a reserve account. If your income is inconsistent and irregular, you need a reserve account with a lot of money and that is more important to your actual ability to execute ideas than any of your long-term investment dollars, any of your long-term IRA dollars, things like that, you need a lot of money just in savings accounts and it helps if you can have or develop a sense of timing about your income so what to do to actually know when it's going to come in if I make zero dollars this month, thirty thousand dollars a month. next month, zero for the next three, then 11,000 and 0 for the next 18 months, that's really hard to plan for, but if I know, it's okay.
I have some history now and yes, there is a cycle where my income decreases because my business decreases during the winter months but comes back during the summer months. Now I can plant, it's what farmers do. Farmers generally plan based on depth. of your bank loan I come from a family of farmers there is usually planning based on the depth of your bank loan my grandfather always had a poster on his wall he said there is a non-profit company he said taxes taxes and debt taxes and banks keep it that way I think something like that very empowering message and I was assaulted so the point is if you know okay I'm going to win and here's my income we're going to sell our crops and we're probably going to make half a million dollars off income, then you sit down and make a budget for next year, but all the farmers I've met and worked with need a lot of cash and cash is to fund those things, so that's the only way I can know how to do it, so if you know the cycles then you'll be able to figure out what the real amount of money is, but I think you just need deeper savings accounts than a lot of other people, you need accurate records of what you're actually spending and so you can You can get an idea of what thirty thousand dollars in the bank means, does that mean three months of expenses or does that mean 30 months of expenses?
There is a big difference between your planning in those two scenarios, you need to have an idea of a reserve amount that you can We are focusing on that and that would be different for each industry and each situation, maybe you need three months of cash in the bank and maybe you need three years, depending largely on what your expectations are, if you can find a way to budget outside of your stable income that would be awesome, so let's say all your expenses come from your fiancé's income and your budget is based in that, but all your extra fun and all your real investments come from your income, that would be really cool, what I have worked for is my goal and I almost achieved it before I left the company I was in, but my goal was to get to the point where I could always budget my renewals and my residual income from my investment accounts, so instead of relying on new commissions that can come in large amounts and, you know, some would consist of some or not, then I could focus Well, I have this base level and I will always budget for that and save all new commissions.
So over time, those were my very simple guidelines for how I could make sure that I was always saving a lot of money but I was still growing my lifestyle, so I didn't know to a certain extent where I was doing it. I didn't feel like I was starving all the time and then in the first few years I was very focused on how to build more business so I could get enough upfront commissions through to renewals and residuals on the size of the investment. The portfolios I was managing got to the point where I could manage my lifestyle off of that, so now, in a different scenario, my approach is to build a budget based on my consulting income and the income from the consulting site. membership, and my goal is to build that. as the foundation of my business to be able to take it out of that regular income and then have different unique business projects, be the big money that I can save and that I can invest over and over again, all of this is relative to scale if I'm making two thousand dollars with residual income and my expenses are five thousand dollars, I can't do that, I have to earn large amounts, but if I'm letting them know twenty thousand dollars of residual income, then maybe I'll go ahead and continue living on five or ten and save the half, so this is all relative.
Hopefully, you'll understand the concept and the idea and then you'll have to figure out what to do. The last piece of advice I would give you. In this situation, you should keep your fixed expenses and fixed obligations low and your margin high. You can get away with living close to the limit if you have a regular income. Many people do it if they have a good regular income that is a very consistent paycheck. go ahead and you will be able to maximize your life you can borrow a lot of money you can do well but you can't if you have your regular income and hope to keep your business running the number one cause of business failure is usually cash flow problems It's kind of obvious right for companies that fail because they run out of money, which means that because I need it, there are some additional problems, like the problem of lack of sales or the problem of too high expenses, or what, but the problem is cash flow management etc.
If you can keep overhead costs low, then you may have a little more margin. I couldn't be doing what I'm doing now if I had a lifestyle with extremely high fixed costs. I've told you how much money I make from the program so far. It's not enough to support my lifestyle, but it's a far cry from the five or six thousand dollars I need gross of business expenses to support my lifestyle. It's a big difference between creating 5,000 a month versus fifteen thousand a month in the short term. So in the early years, as I invest and build a business that will compound later, the path will have more flexibility, but those are some ideas I have.
Hope these are helpful Brendan, that's my best guess. you have and you will have to discover it, take it and interpret it for your situation, because with all financial advice, this is really the big problem, because with all financial advice you have to figure out how to apply it and interpret it in your situation. you hear these things situations of your details of your situation of fact dependent okay, that's a big problem, dependent on the facts and there's a big difference between someone saying, give an example. I planned what worked once for a lawyer and he has variable income.
Him, how much money do you make? Well, he said it varies, you know, some years, last year it was three and a half million, this year it seems like a million, you know, he says he's wandering around next year, I don't know, but he was. winning big cases and therefore income was extremely variable now, is it so important to budget if your income is between one million two and three and a half million? Well, if he spends two million every year, then it's a great deal, but luckily this guy wasn't spending on a few hundred thousand, but he was, he was certainly living well, but it's no big deal for him if it's between 1 million this year. and five the next one, so the question is not just about your regular income, the question is what is the scale, what is the real scenario, what is the irregularity, that is why I have spent all this time talking about SEP and ideas and I hope this was helpful to you.
Today's show, sorry, the show is coming out late, substantially late, it's still online, so we'll talk about that another time as to the reasons why I'm still learning my own business and then learning how to buffer. The details of life and the details of life have been a challenge the last few days, but here it is and I hope it was helpful to you. If you'd like to get your questions answered on a show like this, feel free to email it to me. Radical Joshua Calm personal finances and I always prioritize show sponsors so if you email me one thing I actually check names but it would be helpful for me if you email me a question just take note whether you're a sponsor or not and that way I'll be able to prioritize more easily and make sure I prioritize those of you who are a sponsor and if you want to know how to become a sponsor, check out all the benefits on radical personal Finance. comm/patron I have a lot of things that are set up for you and I hope you can benefit, but we are working, we are doing well, but we are working hard to get to six thousand a month of income for the program by June first, If we can do it, I can keep the show commercial-free for you, so that's it.
I'm leaving here have a great weekend have a great day bye thank you for listening to today's show if you want to contact me personally my email address is Joshua at radical personal Finance comm. You can also connect with the show on Twitter at Radical PF and on Facebook.com. Slash Radical Personal Finance. This program is intended forprovide entertaining education and financial enlightenment, but your situation is unique. and I can't give any practical advice without knowing anything about you, develop a team of professional advisors that you consider competent and trustworthy and consult them because they are the ones who can understand your specific needs, your specific goals and provide specific answers to your questions I have done everything possible to be clear and precise in today's program, but with a person and I make mistakes.
If you spot an error in something I said, please help me by visiting the program page and commenting so we can. let's all learn together until tomorrow thanks for being here
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