Ep. 10 - Why I'm bullish on self-employment

With everything going on in the world - socially, economically, and politically - I believe there's no better time to become self-employed than right now. It’s one of the foundations for building a sovereign and independent life, and one which YOU can actually dictate.

Lately, headlines have been dominated by stories of burnout, rising prices, and essential workers being pushed out of their cities due to skyrocketing prices. This is nothing new, it's been occurring for years. But, burnout and inflation are starting to take center stage. So, what’s your hedge against these forces? How are you protecting and growing your wealth and health while real wages decline and prices for virtually everything increase?

My advice, and what I believe to be the the greatest hedge, is self-employment. Higher earnings, flexibility, and ultimate antifragility. Let me explain.

Rising Prices

Prices are flying. We’ve all heard of lumber almost tripling, the housing market mania (especially in Vancouver, where I’m from), and the receipt at the pump continues to climb regardless of oil prices. But there are also costs that go unnoticed for some time. Go out for dinner and it’s nearly impossible to spend less than $50 for two people. Add in a few drinks and an appetizer and you’re well over $100. Going to the grocery store once a week basically turns into another mortgage payment.

So how do we compete with these high prices? The simple answer: higher incomes and quality assets. I truly don’t think there has been a more important time to ensure money is being aggressively diverted into assets (Copper, Gold, Crypto - I'm not terribly bullish on the broad equity market right now, but a solid dividend paying stock is better than cash).

Self-employment allows you to dictate the price of your product or service. You command your income. You are in control. This is the best hedge against inflation you can get.

Burnout & Disloyalty

As we saw last March, companies (most companies) don’t give a shit about letting people go. Employees are often so loyal and dedicated to their employers. They work late, work weekends, and stress about work in the evenings. It turns into a 24/7 job. The thought of quitting makes people extremely nervous. You hear things like "I can't let them down." "They'll be screwed without me." But, two points to this; 1) they won't be screwed. Companies can pivot, employees leaving is expected; and 2) who cares? They can fire you in a moments notice, so don't feel obliged to give months and months of notice.

But, this pressure also comes from the stagnant and low-wages. Wages have remained largely unchanged over the past decade, as consumer prices skyrocket. This traps people in careers and jobs they hate. Especially if they've tacked on a big mortgage, a few new cars, and Instagram worthy vacations. And so, the cycle continues. Collect income, spend on necessities, save a little, and then spend it all on something unnecessary to escape life (vacations, new cars, etc.). Rinse and repeat. You're trapped.

So our first order of business is to get the financial house in order. Build a nest egg and an antifragile portfolio that will allow you to live for years without working (start with building a three-month runway, and then work from there). This is the goal. Then you’re not trapped. If something happens, like a global pandemic, no worries, you have your bulletproof portfolio of assets.

Why do I care so much about this? Try this thought experiment.

Every week, we trade 5 days for 2 days. Would we ever make that lopsided trade with anything else? Would I give you $500 in exchange for $200 and call that a good deal? Nope. Not a chance. Time is the greatest currency there is - always has been and always will be. How about this - trade 60 years of work and school for 20 years (if you're lucky) of freedom/retirement? Nope. Equally terrible trade. And plus, there is a small chance we'll die before reaching 'Freedom 65'. This is why I'm so bullish on autonomy and self-employment.

Financial Independence = More Time

More Time + Financial Independence = Freedom

Becoming Self-Sufficient

I didn't know I had the ability to become monetarily self-sufficient before starting Elevate Financial. I never knew that I could make money on my own without a corporation by my side. But once I figured this out, and once I understood that people willingly trade money for value, then this became quite easy, and creates a confidence like no other.

Economic down-turn? New competition? It doesn’t matter because self-employment teaches resiliency. And resiliency creates confidence, which in-turn creates independence and freedom.

Now, I’m not saying to quit your job tomorrow and become self-employed, because that will just result in being unemployed. But, everyone, and I mean everyone, should work towards self-employment and accumulating various income streams.

Self-employment and financial independence is the greatest hedge against inflation, it’s the greatest recipe for fulfilment, and it’s the best protection for your own sovereignty.