Depending on which analyst or talking head you listen to, the “American Dream” is doomed, or at least highly endangered.
According to Liberty for All: A Manifesto for Reclaiming Financial and Political Freedom however, there are still a lot of things that ordinary consumers can do to build their own fortunes, especially in this day and age where traditional rules of success have been thrown out the window. Below are a number of “new rules” taken from the book. Enjoy
One of the first is also the most interesting. It’s the ability to stay mobile and move wherever economic opportunity exists. Amazingly, while Americans have always been adept at moving to wherever they needed in order to find work and prosper, labor mobility in the United States has dropped to its lowest rate since the 1940s. That’s a problem because there are still a lot of areas of the country where economic opportunity exists. Indeed, there are quite a few companies in the United States that are having problems finding enough workers, meaning that the opportunity is there but the workers aren’t.
Surprisingly, one of the core American dreams, homeownership, is actually a detriment for young families because it can anchor them in place and keep them from being able to take advantage of opportunities in other areas of the country. Since the housing bust of a number of years back, home values are only rising modestly and buyers in many areas of the country are scarce. What that means is that, if an opportunity arises, it’s quite easy for a homeowner to lose money if they have to sell their home in a hurry. Also, most larger companies in the United States aren’t offering the generous relocation packages that they once used offer. What that means is that, if possible, staying mobile is your best bet. If that means renting rather than buying, so be it.
Knowing what skills will be valuable in the future is also a very big plus. With globalization and the digital revolution putting the hurt on many industries, and robots taking over human jobs, looking at your skill set and determining whether it needs to be updated is a must. If it’s possible to blend two disparate skill sets, that’s an excellent way to guard against suddenly becoming outdated. Let’s face it, if you used to be a travel agent, a clerk at Blockbuster Video, or even a print journalist, and you didn’t have any type of fallback skills, you know exactly what we’re talking about. Adding to your skill set is a must in the 21st century.
Next is simply this; work more, save more and spend less. It’s no surprise that most Americans are up to their eyeballs in debt, especially with the constant barrage of television, Internet and radio commercials telling us that we need more, more and more. The fact is, one of the biggest contributors to the financial meltdown of 2008 was excessive borrowing and use of credit and, even though it fell after that, it’s on its way back up yet again.
Many economists will tell you that the economy needs consumers to spend but the fact is that saving your money is not unpatriotic.
And there you have it, three excellent ways to achieve financial freedom that you might not have thought about previously. Being able to move when necessary to find gainful employment, have extra skills that you can fall back on just in case, and saving your money rather than spending it needlessly will all help you to become financially free, or at least help you on your way.