Your job may be coming to an end soon. In fact, most humans may not be working a job in 50 years. The laws of corporate profits dictate that companies reduce costs to maintain profits.
For many companies, human capital (us) is their highest expense. And with some fast food workers in California now being paid $20 per hour, humans are only getting more expensive to maintain.
Don’t be surprised if you go through the drive-through at McDonald’s (MCD) one day and you’re talking to an A.I. bot at the drive-through speaker.
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You may call an Uber; no driver will be inside the car. Artificial Intelligence may also create most of the videos, music, articles, and podcasts we consume. Things will become really scary really fast.
Make the big view smaller. This is the sky-high view of the future; we must focus on the small picture to succeed over the next decade.
The small picture is you and your family. How much do you need to survive and thrive today and tomorrow? Here’s a quick suggestion: the smaller you live, the easier it is to escape the workforce.
If you make $300,000 a year and live on $300,000 a year, you will have a tough time if your job disappears. If you make $300,000 and live on $150,000 yearly, you’ll be in much better shape than the rest.
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There has never been a more critical time to create and execute a family budget. Before building a people-based business, you must understand how much it must earn.
Before I retired from the military, my family began living on $6,000 monthly, even though we made significantly more. My retirement benefits total $9,000 per month, and we are sitting pretty.
If you attempt to live the “high life” based on the income from your job, things may change pretty quickly with the growth of artificial intelligence, computers, and robots. Most companies don’t want to employ humans any longer.
The next step is dividend investing. The ultimate goal of making money is to achieve financial freedom. Financial independence occurs when you make enough passive income from assets to cover your expenses—you no longer need to work.
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The most accessible type of passive income is dividend investing. You take cash flow from your job or business and purchase stocks that pay you a portion of their profits (dividends).
Investing for dividends is the long, slow way to build wealth and financial freedom, but it is feasible, obtainable, and predictable. You can also pass along your knowledge and assets to your children.
Let’s say you determine your family needs $6,000 per month to live comfortably, and you earn $2,000 from dividends. Now, you can pursue various people-focused businesses to complete the rest of your budget ($4,000).
Everyone needs housing. No matter how many robots exist, humans will always need housing. In fact, robots will probably need housing as well. This tells us that real estate-related businesses will always be in demand.
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The first business to look at is renting rooms. There has never been a better time to learn how to rent rooms and leverage your spaces.
Now that giant companies have become the largest landlords of single-family residences and apartments, it is difficult for people to get affordable housing.
These companies want to see the rental price reflected in your salary three times. So, if your rent is $2,000, you must make $6,000 monthly. They also ask to see your bank accounts; they may even want 3-6 months of rent upfront.
All of this is to say renting rooms has never been a better business opportunity. You can easily make $2,000 per month renting a couple of rooms or one master bedroom.
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If you find the right roommates, it’s the easiest money you can make. However, a bad roommate can be torture.
My wife and I rented rooms for over four years to pay off debt and build a nest egg. We learned a lot about ourselves and human beings.
We used our nest egg to invest in dividends that now pay us $1,500 monthly. Think of renting rooms as a means to an end.
The business of helping people. We all possess skills acquired throughout the years, whether through formal schools, self-teaching, odd jobs, or hobbies.
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Helping and teaching others will always be a great way to earn income. The robots can only do so much.
Let’s look at some different people-based businesses that will always do well. Now is the time to start your journey away from being employed to becoming an entrepreneur.
- In-home childcare. You can start a small daycare in your home. Watching two kids could net you over $1,000 each. You don’t need to watch many kids to earn a decent wage.
- Become a nanny. You can become a nanny and charge a lot of money, especially if you have a unique talent in math or language.
- Tutoring. Educators don’t design schools to teach anyone anything. Tutoring can be lucrative if you are good at teaching a particular subject.
- Teaching technology. Technology leaves people behind every day. Older people will pay you to teach them about Wi-Fi, computer operating systems, email, and artificial intelligence.
- Autonomous driving taxi. Your Tesla may turn into an autonomous driving taxi at night. To profit from this, you will need to own a Tesla.
- Limo service. The rich will still want drivers to shuttle them around the nightlife scene. You can purchase an expensive car and shuttle the rich on a one-off basis.
- Teaching benefits. Most people do not like to read, and even more cannot understand what they do read. If you learn about social benefits like taxes, social security, Medicaid, insurance, and Veterans Affairs, you can charge to help others.
- Help people retire. Financial advisors only help with financial products and services. However, a successful retirement includes finances, taxes, housing, small businesses, and social benefits. You can be a one-stop shop.
Putting it all together. Your business reflects your needs. If you need your in-home daycare to make $2,000 per month, keep it at that level.
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You can then start adding additional revenue streams to your business to increase your revenue. For example, in the case of a daycare, you could charge a small fee to drop the kids off at the parents’ house.
No matter the direction you go, you must get started now. As people begin to lose jobs, like in California with the $20 per hour price hike, they will look to start a new venture.
This is not the time to depend on a job. The $20 per hour minimum wage for fast food workers is just the start. They are looking to bring these hikes to New York and Chicago.
Conclusion. I am sure McDonald’s sees the writing on the wall. They cannot afford to pay these employees $20 per hour. They are searching for ways to reduce their investment in human capital.
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Take this as a shot across the bow or a wake-up call. The window of opportunity for being an employee is closing. However, there has never been a better time to start a people-focused business.
How will these new trends affect your job? We don’t know. All we know is that companies follow the profits. This is the perfect time to “mind YOUR business” by focusing on your needs and goals.
I always recommend that people become entrepreneurs before they start a business. You can do that by reading some great books by top entrepreneurs. Good Luck!
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. All Right Reserved Military Family Investing
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