One of the most fundamental needs of humans is that of security.
We need to be able to feel as though our basic needs for living, such as food, water, and shelter, will be taken care of well into our distant future. Subconsciously, your mind is constantly finding ways to improve these basic needs and will make decisions based on such.
In the previous economic paradigm, a benevolent government or a company through well-funded pensions that would take care of people in their old age would have met those needs.
That may have worked for people currently getting benefits out of the system, but anyone under the age of 55 today probably doesn’t have a very great chance of getting much, if absolutely any, of that from that system.
We’ve seen the whole structure of the welfare state collapse in the recent past in Europe. Around the same time, the Minister of Social Affairs in Italy was scene crying on television explaining:
“I’m sorry. People who work have no more money for you. Consequently, the retirement age will be raised to 62 years for women and 65 for men. We can no longer afford to index pensions with inflation, so you’ll have to do without. ”
You are probably familiar with what a ponzi scheme is. Many people have fallen for those over the times, as they can seem very enticing at first.
The concept is pretty simple. First you get investors and promise them an awesome rate of return, way above the market value.
For example, a 20 or 30% annual return or better. Then, you pay these “investors” faithfully for a while, but only with the proceeds of other investors that are joining in!
So you spend all the capital you have to pay everybody, but eventually the structure has to collapse. Of course the next to follow the company completely collapsing, and everybody involved taking all the proceeds and running for the hills!
Government pensions are almost like a Ponzi scheme because people receiving benefits today are being paid through the taxes of people working today. What you pay in taxes today doesn’t go to fund your own pension… it just goes to pay people that were promised benefits decades ago.
And it doesn’t matter whether you live in the USA, Europe, Canada or elsewhere. Most countries have the exact same problem.
So we know we can’t count on our governments to take care of us in the future.
We also know that the companies we work for might not be able to take care of us in the future.
The only thing that’s left is personal responsibility for our own sense of security.
The beauty of the Internet business lifestyle is that you can develop skills that can earn you a living no matter what happens in the world.
I know for a fact that even if I lost everything I have built so far, I could still start from scratch and with everything that I know, make a full-time living again in a matter of just months. And once it’s setup, I only need a few hours a day to maintain it.
Sure, you have to adapt with the times. The Internet, as it is today, will not last forever. Eventually, it will change form as technology evolves, just like anything else.
Even if right now you are working a full-time job, or even working full-time-plus hours (55+!) like I know many people regularly do to support their families, you can always find the time to make some time investments towards your own business.
The freedom and income your own business could earn you could earn you thousands upon thousands of dollars and hours of freedom in the future. And if spending just an hour less time watching TV or browsing facebook per day and instead investing into your own business is all it takes, it may be worth the effort.
What have been your experiences with these types of “security systems”, and what are your plans for building your own? Let us know in the comments below!