Plan Second Income – Is Your Job Really Dependable?
For many, sense of security is the only thing
to be comfortable in career and life. There are fortunate people who work for the Government and got job before New Pension Scheme. They are entitled for defined retirement benefits. These people will enjoy a pension which increases with time, as their pension is linked with dearness allowance. The most beneficial situation is that they don’t need to care for their retirement on their own. The situation is just reverse for the people, who have contributory retirement benefits. Your employer must have given you the retirement age in the organisation. Earlier, we saw people serving one company in their whole life but today, a person works for minimum four organizations in his/her whole career. After some jumps in different organizations, you finally come to a company where you can see your future & stability. After education, internship & initial learning years, you get a good job with good gross and net take home salary. The first thing after your marriage, you want a good home and a luxury car for your family. You feel confident by going for window shopping on weekends and doing the best for your family. You feel secure because of your present. These lines are to maintain your confidence after 20 years also. You are aware of things around you. For your secured future, you must ask some questions to you.
- Who is your employer?
- What is employer’s business?
- Why you have been hired?
- How long your role would be beneficial for your employer?
- Have you replaced your boss?
Before answering these questions, you should read further ask yourself, Will you really retire at your employer’s defined retirement age?
What is your employer’s business?
You should know, what is the business of your employer? How your company earns? Your employer has a certain vision for the business opportunity and it takes all the risk in market. You get your salary at the end of month but for your employer, it is not certain. You should know the business model and the scope of business of your employer because your family is also indirectly associated with your employer. You should also be aware of the business phase in which your company is sailing – expansion / consolidation / diversification?
Your role in the company
For many, business is not their cup of tea. Organisation cannot pay you for long without making profits from you. The most important part is – do you have a key role in your company? You should always be in line with your employer’s plan of action. If you feel , there is any deviation or you find yourself not competent enough, this is the time to increase the potential of you. You are an enterprise in yourself and is your company bound to hire an incompetent enterprise to outsource its work?
How long, your role would be beneficial for your employer?
The question is not for today. Are you really a part of your company’s plan? If not, someone will take the charge sooner or later. If you put yourself in your company’s shoes and ask, where is company going in next five years? What would the company be doing in coming few years? Who are the people in your organization whom, you would like to continue because they have the skills and competence to carry out the tasks? Your boss also thinks exactly the same.
Have you replaced your boss?
In today’s scenario, most of you, have replaced someone, because you were economical, more energetic and competent. You are in time, where everyone likes to work in multinationals, leaving the business families, who take care of senior employees as consultants after retirement. Now the question comes – is your company ready to leave profits aside, to protect you? In market there is value of one thing only – VALUE ADDITION. If someone is ready to add value in less CTC, can you retire at defined retirement age of your company?
What is the retirement age in your company?
Now you know yourself and you have realized the time, when your company has planned to retire you. You can plan to update you and make yourself an asset for your company. Still market forces will work constantly and harshly. Can you really depend on the HR Policy only?
How you can determine your Retirement Age in your company?
These days it’s your responsibility to take care of your family and secure the future of your family. Employer gives you the package, to deliver results, so you take care of the professional affairs and keep the personal affairs aside. But at the end, you are there with your personal things only. Market never stops, only you are there, to be responsible for your personal affairs. How can you balance your both the ends?
Work to add value
Every employer wants assets; it expects you to add value to the organization, in a regular manner, for years after years, till the time you expect to take salary for your services. By delivering the expected, you can work for more years with your organization.
Be prepared for your personal responsibilities
You want to be secured and confident, all the time; you can control yourself, not the market forces. As you know, you may need to prepare your resume, at three month’s notice; you need to be prepared for the days, when you don’t need to compromise your self confidence. It’s must for you to have a situation where you can say, “If I am not comfortable in going to office and obey my Boss, I shall retire”. This can be achieved by your proper life plan and deliberate efforts, to take control of your life. Today many people don’t have more than 25 years of career, there are more nonworking years than working years. So by the time you have 10 years of experience, you should have your second income, which is not dependent on your job. It doesn’t matter, whether you start with low income or high, you should be focused, to have your monthly income, coming without your job, by the age of 50. All the companies have same organizational structure of a TRIANGLE.
How many people achieve the top from bottom? After all they lose their job, you should once look at the age of people, and sitting at the top management of ‘India Inc’ and you should also check the number of persons sitting at the top. The best strategy to handle a tough situation is, to accept the truth and face the situation.
Do remember never ever buy any property in hurry. Always select more than one house because after zeroing in, you need to go far more than this. Once you get the papers of the property you should always remember not to behave like penny wise and pound foolish, give charges to a competent lawyer for verification. Check the developer’s record by talking to the end users, if possible, visit his other delivered projects. If you are buying independent house kindly check the papers more carefully for encumbrances as in India it takes lifelong years to settle the civil matters.
Enjoy financial planning!