For as long as I can remember, I have always been self-employed. Notably, I used to have a dance school, an Airbnb apartment rental business, and a photography business, and now a podcast.
Although I have never been rich, I have always been in a position to say F-You to any particular client who made unreasonable demands or who claims that “the client is always right.”
This ability to say F-You has given me a lot of leverage in business relationships, a lot of flexibility in my private and professional life, and high self-esteem.
If you are an employee
Most employees are dependent on their employers’ paycheck in order to pay the bills. The power dynamic is lopsided with the employer having most of the power.
There are two ways to level the playing field:
- To develop a set of skills the makes you desirable in the eyes of many employers.
- To have enough money put aside so that if you get fired, or if you decide to walk away, you will be ok. Being able to walk away is a strong negotiation asset.
Developing new skills
No matter your field of expertise, you can always have a few more skills up your sleeve to make you a more desirable employee. This doesn’t mean getting a new career every few years (you don’t want to be an institutionalized student for the rest of your life) but there is always something new you can learn to make you a more desirable employee.
If you notice, programmers and engineers, are generally in a position of power. Companies fight for whoever is available in the pool of talent. Employees are poached from one company to another and they are lavished with perks and benefits. In this case, the employees have the power, no the employer.
You want to make sure the balance of power is tilted to your advantage.
Putting aside F-You money
If you don’t have a set of skills which makes you desirable in the eyes of an employer, you must have some F-You money.
If you get into the habit of living below your means and putting a little bit of money every month, you will never be put against the wall. When things get very bad, you will have the power to walk away and look for something better.
However, if you decide to live paycheck-to-paycheck, you’ll be 100% dependent on your employer and deprived of any self-dignity you might have. And you deserve it. You put yourself in that position.
Just by having a bit of money, you will have the power of drawing an imaginary line and if your employer ever crosses that line, you can just say “Good bye.”
If you are self-employed
To make sure you are in control, you need to:
- Have a portfolio of clients, and not be dependent on any one client
- Have at least 3 month cash reserve
Have a portfolio of clients
If you only have one or a few clients, the balance of power is against you. There are many businesses that only have one big client, for example, Walmart. Well, you know that your business is at risk. The one client can stop doing business with you, and when that happens, your business is could be finished.
The best thing is to have enough clients so that you can afford to lose any one of them without putting your business at risk.
Have emergency money
During Covid-19 many businesses went bankrupt because they had less than one month worth of money. If you have a good reserve of cash, say for three months, but ideally for one year, then you can withstand the ups and downs of the market.
Conclusion
You owe it to your self-dignity to have some F-You money. Don’t let any employer or client dictate your life.
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