Retired Income — Fixed Or Variable
If you are close to my age, or maybe even if you are not, you very likely think of the term “fixed income” when you think of retirement.
Since I was a little boy I have always heard various comments regarding retired, usually ‘senior citizen’, folks who were retired, coupled with that fixed income phrase.
It’s almost as if we were talking about some sort of disability (differential enablement?) regarding retirement and our citizens in their “golden years”.
The reality of life is that most people reading this article, be they 20-yo’s or 120-yo’s are on a “fixed income” … certainly, I was for years, even long before I retired, and today I think it is time to figure out why.
Almost Everyone Reading This Is On A “Fixed Income
Why was I on a ‘fixed income” for all those years, and why are (most of) you in that same leaky “fixed income” boat right now?
The answer to that question is both complicated but simple.
It’s complex in the sense that from childhood most of us are taught that the path to success is to go to school, build up debt, beg for a job from somewhere and then take what you get until you are old enough to take what “they” are willing to let you have in retirement.
Take whatever you can get, live with it, and then settle with what they will give you for the rest of your life.
The “American Dream”?
Not for me, at least not anymore. Is it still your dream?
The simple part of the answer is, there is not a complex algorithm or history lesson to learn about whose fault this “Fixed Income” shit is.
It’s not the fault of “the economy” (whatever the hell that is).
It’s not the fault of one or another political party or president.
It’s not the fault of your parents raising you wrong.
It’s not the fault of growing up in a bad neighborhood.
It’s not the fault of the lousy college you went to.
No one is responsible for your “fixed income” except you.
It Is Not Up To Your Employer, It Was YOUR Decsion
You took a job voluntarily.
You allowed someone else to set the price you are worth.
You and you alone decided to let other people control where and how you are allowed to work.
And you, and no one else, is empowered to change anything in that algorithm you may want to change.
How can this be? Here’s one way you might want to explore.
… Earning a variable income, where you have the flexibility to earn a different sum of money each month, has a lot more to do with mindset than anything else.
It doesn’t matter if you have a job, run your own business, or enjoy multiple streams of income. T
hose are just different vehicles.
The key is to recognize who determines your income.
You may have financial and economic realities to deal with, but ultimately you set the prices for what your time and efforts are worth financially, you decide what skills to develop and what kind of training to undertake, and you determine what kind of value to create and deliver to people.
The most powerful choices are under your control.
If you deliver pizza for a living, you can expect to be paid for that particular skill based on its market value.
Pizza delivery guys are easily trained and replaced, so you can expect to earn very little from such a job.
Don’t blame the job for what it pays.
No one is forcing you to choose a low-paying, unskilled job.
If you try to squeeze more money from a job than the job is worth in the larger marketplace, eventually your boss or customers will figure out that you’re being overpaid, and you’ll be replaced by someone cheaper. …
Your income is not fixed unless you decide to fixify it.
It doesn’t matter if you’re getting checks from the government as your only income source.
Those checks may not increase in size, but they aren’t the only checks you’re capable of earning.
If you don’t like the size of those checks, go out and earn different checks. …
Does Steve Make Any Sense?
Read the rest of Steve’s article about why having a fixed income is a sucker bet, and think it through.