Advice for the Jobless, Penniless and Desperate
Ever since I started this website, I have received emails from aspiring Happy Jobless people. But while they are certainly jobless, they aren't happy. Mainly because they are also penniless and desperate. And they're asking me what to do. I am writing this advice for the jobless, penniless and desperate, to help those in financial dire straits get out of that situation.
If you are penniless and desperate, you are not ready for the Happy Jobless Life. The first thing you have to do is to tackle your immediate situation. If you're penniless, get a job. While this may sound like a paradox, coming from the Happy Jobless Guy, but you can't give much focus on living a happy jobless life if you are hungry.
What job to get? Any job that puts food on the table. It doesn't matter if you're working in a fast food outlet or sweeping the floor or cleaning toilets, do whatever is necessary and honest to ensure you never go hungry. As long as you earn an honest living, all jobs are honorable.
The second thing to do is examine your financial situation. How did you get to be penniless in the first place. Is it due to bad spending habits. If you have a drinking / gambling / shopping, etc. problem, fix that. If you are penniless because you "just can't hold a job", fix the attitude problem.
The third thing to do, once you've gotten a job, is to have a disciplined savings plan. By this, I would advocate "paying yourself first." To do that, first determine a fixed amount to put aside from your pay. Compare savings accounts and open one with the highest interest rate you can earn. Deposit this spare cash here and keep it separate from your other funds. This will be your savings and future cushion against any further financial calamities.
Of the balance, allocate for food, living expenses and a fixed amount for entertainment. The amount allocated for entertainment should not exceed 20% of what you put aside for food.
Living expenses include utility bills (electricity, water, telephone, Internet), rent and petrol/bus fare. Entertainment includes all forms of shopping. Do not make any purchases related to entertainment more than once a week. If there is something you are eying for, save for it, out of the allocation for entertainment. It may take you a while to finally be able to afford what you want, but ultimately it is worth the sacrifice.
The amount put aside as Savings cannot be used for entertainment. Grow it until it is 4 times the amount you spend on food and living expenses, then look for better ways to grow it. Always keep the equivalent to 4 months's food and living expenses in the bank. The rest can be used for investments.
Once your financial situation improves, look for opportunities to improve your life towards a happily jobless one. As you continue with your investments, also look for other streams of income which you can find described elsewhere on this website. Do not quit your job until your monthly income from investments and other sources exceeds twice the amount you spend on food and living expenses. Only with good reason should you quit ("cleaning toilets is too demeaning" is not good enough reason), and such a reason should be, that you can better spend the time creating new streams of income.
Getting out of financial difficulties is never easy. The problem with most people is not the lack of jobs, but the lack of will and discipline. You alone know your weakness, so only you alone can fix it.
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