Yesterday afternoon, I met up with a friend to catch up on life. He informed me that he had recently been let go from the company he had worked for over the past 8 years. I know he was extremely competent and gave everything he had to the company. He was informed that the organization was taking a new direction and he was no longer a “fit”. He had never been let go from a job in his life. He is 53 years old.
Sadly, my friend’s situation is not uncommon. As I moved up the ranks of the corporate world, I witnessed many good people fall to the wayside as they reached their 50s, a critical time in the financial planning life-cycle. This is supposed to be the key earning years to help with the final push towards a comfortable retirement. In most cases, these people did not see it coming and were completely unprepared.
The world is changing and we need to be able to prepare, adapt and change with it. Unless you are already independently wealthy, relying on one income source is no longer advisable nor practical.
If you are in a job, earning a good living but you don’t love what you do, find a part-time passion and turn it into income if you can.
If you love what you do and you are making money at it, keep doing it, but make sure you have a fallback position.
There are lots of ways to earn income. Start up a part-time business, rent out a suite in your home or take on a student, but whatever you do, make sure you have a plan in case the income you are relying on today is suddenly gone.