Being youthful and gainfully self-employed is one of the most popular and efficient trends that has emerged out of the pandemic and is here to stay for the foreseeable future. With an emphasis on building one’s defensible MOAT and generating recurring cash flow during tougher economic times to strengthen the top and bottom line, there’s no reason not work for yourself!
Although a bear market may not be the most ideal time to compound your net-worth with lower valuations, bottom rock deals on risk assets, higher cap rates, surging commodity prices, and one for the worst years on record for bonds, the correlation on effort versus return has never been weaker, which is most advantageous when generating true passive wealth long term ideally at home! Particularly with Treasury bills or risk-free assets, the lower risk premium you take on (perceived risk) during these times, the higher yield you’ll be locking in with little to no effort.
There’s no better feeling than earning a nearly guaranteed 4–10% return on an investment which is more than possible with real estate crowdfunding opportunities across the nation, venture debt or on short-term treasuries with little to no effort on your own. That’s the upside to leveraging untapped opportunities during a bear market. Anyway I would prefer a lower yet guaranteed stable rate of return.
In the physical world outside of one’s portfolio, while office space across the coasts are filling up and SweetGreen lines are trailing out the door, work office furniture and office space in general are also still in high demand. For the most part in white collar industries, hybrid is here to stay to allow workers to feel free again and as a result, do better in work and grow their cash flow streams on the side as well.
Alongside the entrepreneurship self-improvement age, many employees, whether it be the ‘quiet quitters’ or those who go above and beyond to support themselves and grind so they can square everything away and retire 30 years before the average retiree can, everyone is working for themselves in some shape or form, you just don’t see it as clearly in this internet age.
Whether you’re a full-time at-home influencer or part-time blogger such as myself, there are always options to leverage however what will be best for your financial circumstances is to not rely on anyone except yourself.
The old adage, to never fight the Fed nor yourself couldn’t be more accurate at this stage in the game when markets are enduring bear rallies and looming uncertainty left and right.
Not So Fast
No matter what you do, there will always be more to do.
The cycle never ends since a capitalistic society demands more scale, efficiency, technological innovation, and of course, profits back into the pockets of those who run it. The most common reason employees who chose to walk on the unbeaten path and forge their own during the pandemic and now are facing massive regret was due to their inflated predictions about work life balance and freedom.
We all have our constraints and that’s a good thing. If we had everything, we wouldn’t be nearly as happy as we think. Internal happiness will never come from external things long term. The hedonic treadmill will eventually flatten.
Our happiness resorts back to our baseline limit eventually and as a result, no tangible materialistic good will satisfy us long term besides the effort and satisfaction we bring to ourselves. This usually involves what we create and the memories we share with the priceless things in life.
The reason so many first time eager millennial homebuyers who scooped up a deal in the lockdown days of the pandemic are now selling their properties was due to this FOMO and unrealistic expectation that a new and improved lifestyle of BYOB fueled by the pandemic and WFH are the best things in the world.
Fast forward a few months later, there had been numerous findings of millennials moving back into their childhood homes. The truth is we always want what we don’t have but that tends to blindside us into choosing what’s not made for us long-term.
The ultimate irreplaceable perk to being your own boss is getting your time back, the ultimate financial freedom that no one can purchase.
Time is a luxury and a true commodity that most don’t think of right away when they want to forge their own path. Instead they dream of the tangibles or tax savings that although can provide more lasting satisfaction, long term, appreciation will fade. Striking the right balance is ideal, especially the younger you are. Not everything can be done at home after all!
Whether or not you are still deciding to jump on the pandemic trend train of BYOB, it’s not too late. It can be a daunting move so make sure to test the waters in case you’re on the edge. Start to bulk up your passive income streams, tap into alternatives, dedicate more time in the evenings and early mornings to build your IP, and figure out what you love to do for free.
Any leap of faith requires a careful balance and formula. At the end of the day, always remember happiness = reality — expectations.