Thursday, July 3, 2008

Retrenched, Laid-off, Downsized, Outsourced

It is the survival of the fittest, more so in today's stagflation environment. Businessmen have to be innovative and embrace the Blue Ocean. Only the creative and innovative plus resourcefulness stand a good chance to survive!

It was reported yesterday that a factory closed overnight in Penang, leaving close to 1,000 workforce in a lurch. 1,000 breadwinners who need to feed the family members. It is a real issue. The bread and butter issue. Is this part of the occupational hazard? Loyalty and dedication do not count. It is a dog eats dog world. It is a business entity not charitable body. Period.

Nothing new as many friends had similar experiences. However, most were lucky as they were compensated and re-joined the employment market pretty soon. Some took the opportunity to be enterpreneur. During the uncertainty, obviously there would be anxious moments. Not sure if there is any compensation. If yes, is the quantum enough to cover the expenses until the next paycheque etc. This is the downside of active income! No work, no pay!

That make the concept of passive income attractive. No work, got pay! Isn't it marvellous? All of us can build this stream of income. For a start, check your bank balances. How is the excess fund performing? Probably earning peanuts and the real winners are the bankers. How about getting the excess fund to work harder! Start reading and exploring. Maybe dabble into the stock market. Lots of attractive pick-me-up in current situation. Many stocks that are below their intrinsic value. Or paying downpayment to own a property. Rent it out and get the tenant to service the bank loan! Diversify! The return benchmark should be higher than the inflation rate! It might not make you a millionaire but at the very minimal it should lead you to some form of financial security / freedom.

Too heavy for you to comprehend? Never Mind. Smell Like Teen Spirit. Live & Let Live. Just take the grunge, ooph, plunge. It is never too early or too late!

Political drama can take a backseat, for a moment. (Latest statutory declaration - getting more explosive - pun intended).

Back to the Penang case, look like there is a happy ending after all. Other factories are keen to hire these breadwinners! Bravo.

pic top - covered active income earners!
pic bottom - thumb up passive income earner!

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