Why We’re Broke and How To Fix It
November 3rd, 2008
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Naomi Dunford at IttyBiz just posted Why We’re Broke and How To Fix It. It’s about the history of how we went from being Jacks of all trades to being helplessly dependent on so many people for our survival.
At the end, she drops the fact that IttyBiz has made over $176,000 so far this year from six different types of income streams (and if you didn’t know, she used to be homeless). And she’s going to turn this thing into a series. Part 2: how she did it; part 3: how she helped a client make $500 an hour for consulting; part 4: answering our specific questions about creating a “a safe, non-scuzzy portfolio of online income streams.”
It’s free, but you have to sign up to receive the free updates. Naomi uses AWeber, so you know she couldn’t spam you even if she wanted to.
However, Naomi has turned off comments. But you can leave comments here. Go check out her post, then come back and let’s talk.
*** INTERMISSION – Go read Why We’re Broke and How To Fix It, then come back to comment ***
Here’s what I’m thinking. Back in the 1950s, it was OK to be specialized because jobs were safe in the U.S. If your job was to optimize the performance of widget A for company X, you could count on having that same job at the same company for 35 years.
But today, jobs aren’t safe, and you can lose any job through no fault of your own. What happens when company X has layoffs, or shuts down, or moves overseas? You now have to try finding a job with company Y. Only company Y doesn’t make widget A, they make widget B. So what happens to all your years of experience in optimizing widget A? It’s all wasted.
Think that’s a stretch? The last time I went looking for a job as a .NET developer, every recruiter asked if I used C# or VB. Their clients wanted them to ask, but I had to explain to the recruiters that these languages are functionally equivalent, they have only minor syntax differences between them, and anyone can switch between the two. So whatever the client wanted, that’s what I had.
Somehow we’ve been reduced to a skill set that keeps getting narrower. Shouldn’t things like performance and drive matter a lot more than what model of widget you worked with?
November 3rd, 2008 at 2:34 pm
I do think it’s tragic that most of us depend on a single stream of income (or at most, two per family) to pay our bills. Unfortunately, many people have jobs that are quite tiring and they probably don’t believe that they have the time/energy to create additional revenue streams.
Maria | Never the Same River Twice´s last blog post..Changes That Stick: 3, 2, 1 … Action!
November 3rd, 2008 at 2:50 pm
Pete and I’ve been posting about this same issue on our blog. We’ve talked about reliance and the steps we’re taking to diversify. I’ve signed up for Naomi’s emails. Our goal is independence and self-sufficiency. Yes, it’s tough if you have a full-time job, but what happens if that full-time job eases to be?
Betsy´s last blog post..COMPASS
November 3rd, 2008 at 3:37 pm
Hi Hunter,
It was a good essay. I have written about a similar subject early in my blog: http://ourbestversion.com/2008/05/realizing_your_potential_in_a_society_not_built_for_it/
I wasn’t coming in from the angle of rich sucking all the good juice, though — I was observing that this efficient co-dependency was more effective in preventing the worst-case scenario — mass starvation.
The chain of evolution goes like this:
dependence -> independence -> interdependence
Contrary to what Naomi claims, in the earlier days of our evolution, there was co-dependence — just not nearly as thorough as it is now. People still had roles. Men hunted and fought wars, women gathered and raised children. The tribes depended on this division of labor, as being independent hunter/gatherer would have been very difficult to survive.
As the societies grew larger and more complex, we simply expanded this model to run the machinery that is our society more efficiently. In the process, we sucked humanity out of ourselves.
But I do agree with Naomi. The time is ripe, also, for independence.
Though that’s not the final destination, either, it’s a step in the right direction.
ari
Ari Koinuma´s last blog post..Why Passion Can Feel Like a Burden
November 3rd, 2008 at 5:38 pm
I just read the post and I must say she is right on the money (no pun). Having been laid off four times in eleven years (and I’m just turning thirty), I am working at getting out of the rat race and dependence on other people. Took me long enough but I guess better late than never.
Carla´s last blog post..Cautious or paranoid? Finding balance with green living
November 3rd, 2008 at 8:40 pm
I signed up Naomi’s course. Very interesting.
However, I don’t completely agree on her explanation of our income history. The majority of the population anywhere in the world have been POOR. Starving poor. Yes, they were jack of all trades, but that didn’t bring much extra income. Most were farmhands or slaves. The only people who were well off were those who had major assets, usually lands. (Priests and aristocrats got most of their income from their land, too.) One possible exception is where people still depended on hunting / gathering. Before agricultural civilization, the society was relatively flat in structure, and if the land provided well, it could be good. And another non-standard is the short time in north America when many people got to be self sufficient farmers (and you know this was done by exploiting the Native Americans)
Akemi – Yes to Me´s last blog post..Check Out My New Outfit
November 3rd, 2008 at 9:53 pm
I just love her writing style. It’s quirky and spunky and she gets the point across. Many people I know are shaking in a corner right now because of impending layoffs. They are all dependent on their day job as their primary source of income so they can’t afford to lose it. Yet they all aren’t doing anything about it. It’s so frustrating. Maybe I’ll point them to Naomi’s post.
Steve C @ MyWifeQuitHerJob.com´s last blog post..Starting Your Own Business: Getting Beyond The Excuses
November 3rd, 2008 at 10:27 pm
You know, I have been running across a lot of people who claim to be making big money on the internet, but other indicators say otherwise! Naomi on the other hand is the real deal, so when she gives a figure, I tend to believe her.
(I also believed her when she said she turned on her video phone and her client got to see her working shirtless.)
Kathy @ Virtual Impax´s last blog post..Sneak Peak at Wordpress 2.7 Dashboard
November 3rd, 2008 at 11:00 pm
@ Maria, the other thing is that even if people had lots of free time, they wouldn’t know what to do!
@ Betsy, independence and self-sufficiency sound like great goals to me. The security of a job is great, but it’s an all-or-nothing deal. If someone loses their job and has nothing else, it’s freak out time.
@ Ari, I guess that’s right – people specialized in hunter/gatherer roles. But if it happened today, people would specialize in hunting a particular type of chicken, or gathering a particular variety of strawberries!
@ Carla, it sounds like you’re off to an accelerated start by seeing the realities of career instability firsthand. I think most people are always dependent on a job, so I’m not sure why you’re saying “better late than never.” Regardless of what you may think, 30 is young!
@ Akemi, I guess most of us can’t relate to the billions of poor people out there today. But in times past, if people were doing a bit better than poor, they did OK. They didn’t need much, and they could make their own shelter, find their own food, etc. A lot of that is because the standard of living was a lot lower. People wouldn’t be happy to live in a house made of animal hides today. I guess that’s a mixed blessing of progress.
@ Steve, unfortunately, even the people who are doing something about it usually don’t make much progress. That’s why I’m interested to hear more about her six income streams in detail. I know she’s done a lot of different stuff, so I’m sure she has some great information.
@ Kathy, sometimes it seems that everyone is making millions, doesn’t it? But then they look so shady and don’t give you any free information at all, so I just run away. Yeah, I remember hearing about that video phone experience!
November 4th, 2008 at 2:14 am
Hi Hunter – You’re right. It’s not what it used to be in the “good ‘ole days”. The days of job security are swiftly going by the wayside. It’s no wonder so many entrepreneurs are surfacing and bringing new ideas to the table.
Barbara Swafford´s last blog post..A.S.K. Darren Rowse – Problogger – How To Become A Six Figure Blogger
November 4th, 2008 at 3:19 am
[...] Once, Chloe went into the men’s room and startled someone. It’s not clear whether he was startled because there was a woman in the men’s room, or because of the astronomical odds that any two people at CTU would use the bathroom at the same time. So before you decide that a job at CTU is full of glory, consider the consequences. Anyway, word has it that CTU has been disbanded in the new season (possibly due to lack of resources). If you want to earn an income online instead, read Why We’re Broke and How To Fix It. [...]
November 4th, 2008 at 3:27 am
In the book, Rich Dad Poor Dad, he also mentioned that we are getting too specialized and closing the doors upon us. I think getting multiple streams of income definitely help us in getting rich.
Cheers
Vincent
Personal Development Blogger
Vincent´s last blog post..How Changing Your Beliefs Can Bring You Success Part 1
November 5th, 2008 at 1:30 am
@ Barbara, I’m not sure when the “good ol’ days” were, but I know they’re not now! With your excavation business, I’m sure you enjoy being free from “the man.”
@ Vincent, I see it more in terms of stability and enjoyment than getting rich. Most people would probably be thrilled to make decent money from a couple of income streams that they have control over. At that point, getting rich seems more like the icing on the cake.
November 6th, 2008 at 10:49 pm
What’s amazing to me is how pay other people to live our lives. We are so busy working and running around that we don’t have time to take care of the house, laundry, yard work, raising our own kids. I don’t think there’s anything wrong with hiring things out, but it seems that so many of us are busily running around just being busy. My kids sure do seem a lot more capable of dealing with change and being flexible than I am. Hopefully this will stay with them throughout their lives. They will need it.
B. Wilde´s last blog post..Parenting Advice – Beware of Halloween Treats
November 7th, 2008 at 12:44 am
@ B. Wilde, yeah, I guess that’s something that’s changed over the last few decades, but I’m not sure why. Maybe the world is just more complicated now, and there are more things to do. The blogosphere alone sure keeps us busy, doesn’t it?
November 11th, 2008 at 11:46 am
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