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Thursday, February 27, 2014

The Obliteration of the American Work Force

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As I sit here typing this word document, in front of me is coffee, beside me is a glass pane, and outside lies a city designed for one purpose: the obliteration of the American work force. I know this may seem hard to the reader, so you might want to ignore it, but make no mistake, there is a massive labor transfer occurring from the first world into the third world.

To explain the scene to my American readers (or European) think of a football field. Now imagine 10 football fields. That is my current downtown location. In this area, there are 10 buildings under construction. The skyline is littered with these cranes that are being built to add capacity to the current business infrastructure. This is not the only city, there are other cities being built across the nation to feed on to this business. So what is the business? The business is EVERY SINGLE JOB that can be taken away from America.

You think that may be old news. OH BOY! YOU AINT SEEN NOTHING YET!!!

fiber optic lines are the new veins of growth, as the rail roads were the old

technology bleeding America one job at a time!
Each building is approximately 20 stories and would house thousands of workers when complete. They will be connected with specialized fiber optic lines that would traverse the pacific and ultimately back to the American shore. Think of it as a satellite office, another branch, but located across the sea and backed by an endless supply of cheap workers. Ok.. I said cheap. This is not true anymore.

Let me take you back to the café. In front of me is coffee, to my side the city, and behind me is an interview. You can barely escape these recruiting agents. The companies they are working for are getting desperate to acquire the labor. They have stationed recruiters to post on the street offering a free meal and coffee, a gift check redeemable at orientation, and a contract worth php20k ($500) just to start. That $500 is a lot for a person living here. However, the employees are now starting to reject it. Even a higher than average income is not enough anymore. Why would it be when American companies will save a whole lot more from hiring the local guy than an American in American soil with no noticeable difference to operations? The American company will have more than a 50% cost saving. The employee knows this and bargains for more. I hear bargaining process (you can also learn how to bargain located in the free trailer of the ebook) table while drinking coffee.

What has happened to America? We could go on and on about economics behind the obliteration of the American workforce but I think it lies in an idea: the American workforce is simply not viable anymore. What does that mean? Well, America is really good at one thing. Innovation. In fact it gathers a lot of new businesses from the creation of these innovating enterprises. But there is a dark side of having an innovation based economy.

Technology replaces the need for humans.

America is not there yet where it could totally replace its workers. However, it is markedly taking this direction. All around you are the signs. An unemployed person is common in America while a recruiter bangs her head in a third world country bc the local employees are becoming choosier. Technology is what allowed this to happen. That fiber optic underneath the ocean is what is to blame for the continued future loss of American jobs. It’s not slowing down and it will actually accelerate. It’s bleeding jobs away through the fiber link at light speed. That accent reduction software that changes the accent of the employee to 90% reflect that of the American is one example that aids it.

I dare the reader to name me one job that cannot be outsourced in the future. Think of robots? We’re already in the drone stage. Location jobs such as: bus drivers? post delivery man? miners? After the market acclimatizes to new ways of doing things these jobs will be on the chopping block. Why the need for a teller on location when you can get a flat panel screen and a pretty girl running scripts? America is the first to adopt and implement these technological changes. The American government is powerless to stop it. Stop innovation? Yeah right. What America counts and values is the bottom line. The bottom line of big businesses to be exact. The bottom line is all America cares about.

change is the only constant in this world; empires rise and fall
I take a sip of my coffee. I realize I don’t even want to mention the exportation of skilled labor. Whereas an American would go to debt to acquire the specialized skills like nursing or engineering, over here the educational process is cheap and streamlined with a visa application locked in a lucrative contract waiting at the end. English and low costs cannot be found anywhere else. China already has manufacturing.  India is already refusing these BPOs because it is transitioning to the research based economy. How can an American compete under these conditions? Superior customer service? A friendly smile? “thank you for you patronage?” These are useless words. What America cares about is the bottom line. And the bottom line plugs directly here in one of those buildings being erected outside this window pane.

Read More: The 2 Ways For Young People To Build Wealth

Saturday, February 15, 2014

Cafe-Approach An Asian Girl With Chickens!!

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Tuesday, February 11, 2014

2 Ways For Young People To Build Wealth: Which One Will You Take?

The majority of expats in third world nations live-off interest income or yields from high ticket assets such as rental properties.The problem with expatriating with this method is you need capital. Lots of it. To accumulate capital you need time. By the time you cash-out you will be old. You will be one of those old retirees who is gasping for air while chasing bar chicks. How did these guys do it? They have been building their capital for decades and enjoy the fruits at the tail end of their life.

So how should young people (gen Y and Millennial) build  wealth then? Young people have neither cash nor skills. Does having no cash and no skills mean you should first build capital until you have enough to live on investments like these guys? WRONG. What young people have is the most valuable asset in this world: TIME. You cannot buy time. Everyone gets assigned a finite time and yours is still plenty. A young person is rich with time. Consider that all these old guys would trade every single cent they have for a chance to be young again. As a young guy, you have this asset and that is the most precious asset that you can ever have.   

You can choose to grow your money by saving and investing like these old guys. However, there is another way. You say, “Third World Hero don’t fck with me.. I have dreams and aspirations here!” I’m not. This is a logical reframing of how you should look at building wealth. The only realistic way to build wealth is to control your costs while increasing your income. It really is that simple. Now there are two ways to do this.

First is to be an employee. With an employee, just like the old man, your ultimate goal is to control your costs through frugality. Growth comes from interest compounded on savings after a LONG time. You will not be in control of your income. You will trade your time for a set amount of cash. You will not be in control of your time. You get a set time (usually 40 hours) of work a week. Your per hour rate will always be less than market value so that your employer profits. You will only develop skills your employer requires. You can build wealth this way by being frugal. You will enjoy your wealth at the end 10% tail of your life. Your friends are interests as they fuel your capital growth.
The downside is that you might not make it. Consider what happens when the market tanks. This is what happened to Americans recently as they saw their life savings evaporate. Consider if this happens before retirement or before you take the leap. What if the house value you were hoping to increase suddenly gets obliterated (just like a mortgage crises)? What if you get replaced by automations? How about outsourcing? There is more to this than just numbers. What if you don't want to be frugal? What if you want to enjoy your youth? What if you want to enjoy your life? 

The second way is to create a non-job. With the non-job, unlike the old man, your ultimate goal is to build an income system that is scalable. Instead of interests, growth comes from scalability. You will be in control of your income. You will be in control of your time; you can devote 40 or 100 hours to your work. Your per hour CAN be scaled (an employee doesn’t have this). You will learn the skills that you need. You will keep all the profits. Because you are in control of your time and the direction of your income system, you can compress your working time to pump out a viable system in 5-10 years. Your friends are scalability. It allows you  to increase income over costs at a faster rate than growth on interest. Consider that online income systems produce at 24/7 365days a year.

The downside is failure. This is where young guys have an advantage. With your time advantage you are able to fail and fail again. Think of a $1000 investment with 1/10 of succeeding to create $15,000. Will you take it? With the ability to fail you will have multiple chances to play. You only need to hit it once to recoup your capital and profit. Older guys are limited because their time is already scarce and their capital is locked to provide their income. Young guys should use their time advantage on that one successful roll. You are unlikely to hit it on your first try. But consider that on 7th try you already possess skills and experience and on the 10th you might even have mastery and have better odds. 

The choice will be yours. However, young men are forced into this as well. I know, as a millennial, the traditional concept of being an employee are being challenged. More and more millennial are opting out of the rat race. They are exploring, innovating, and providing value to their end users. These millenials to save costs are starting from their parents home, friends basements, small apartments, and increasingly, in third world nations. 

Choices you make early on will have the most impact. If you change course by 1 degree in the beginning of a 5000 mile trip, it makes a huge difference. If you make that change in the last 100 miles, you’ll still end up in about the same place"

Sunday, February 2, 2014

What's In Your Life's Playbook?

By Andy

“Check it! Check, check! Opposite 15! Opposite 15! Omaha! Sally! Apple, Apple! Orange!” If you are a football fan, then you have heard a lot of this, particularly from Denver Broncos quarterback Peyton Manning. Of course, I’m talking about calling an audible, changing a play at the line of scrimmage by calling out a new play or formation to adjust to an unforeseen opposing alignment. Now, football is only a game, but in the game of life, you need to have a playbook, and be able and willing to call audibles when something doesn't seem right. You need to have plans and contingency plans.
So, what's in your life's playbook? An emergency preparedness plan for when the power goes out in a major storm or other natural disaster? Do you have a backup plan for when a date you're on goes awry? How about a job search action plan when you want to leave a sh*tty company? What about planning a trip to an exotic country you've never visited before? Not only do you need a plan for all of those things I just mentioned, you need a plan for everything in life. You also need backup plans. You not only need one plan for something, you also need a Plan B. You also need a Plan C, a Plan D, a worst-case scenario plan, etc. This is because sometimes, things don't go as planned.

Nobody plans on their car's tire blowing out on the way to work or catching a cold. That's why spare tires, AAA, medicines and home remedies exist. The key is learning how to change a tire, signing up for AAA and actually calling them when you've got car trouble, getting plenty of rest and taking the proper nutrients. Don't like the city or town you're living in? Either work towards making changes to improve the community or take steps and set a date to move out.  If you want to enter a certain career field, research it. Learn as much as you can about it from various sources to see if it is for you. If you are still enthusiastic about it, take steps to get yourself enrolled in classes or training courses. If it turns out later on that it isn't what you had thought or planned, or that the desire no longer resides in you, get out without making yourself suffer any further. Have a backup plan that you can fall back on, at least temporarily, while you go back to the drawing board and draw up a new set of plays.

If you're a guy who's venturing out of the American matrix to date overseas, awesome, but don't focus solely on getting dates, magnificent as that is. Read up on places to see, learn the history and study the local language. If you want to, sign up for some legitimate international dating sites in advance so you can write letters to multiple women in the country you choose to visit, and have dates set up by the time you arrive. It certainly can't hurt your chances and can only supplement the cold approach. That way if one method fails, a date flakes out on you or if you and one of your dates don't click, you can go to your reserves.

From past experience, I can tell you that even something as exciting as a foreign woman you've been pen pals with for a while, coming to your country by her own accord and on her own dollar, needs a superb plan and a mighty backup plan. Don't try to be Mr. Hospitality by offering to be her guide or letting her stay at your bachelor pad, even if both of you are verified members on CouchSurfing. It's possible that her personality might be totally different from her letters and she might not be the best guest or roommate, or the two of you might not be compatible with each other. Instead have her come to your city to meet you, but offer recommendations on tourist attractions and accommodations; picking her up at the airport or train station should be the most you do for her initially. If sparks fly and the two of you end up having great chemistry, you can decide to cultivate a relationship if you wish.

Thinking of buying a condo, house or some big property? If so, when and where? Do research on if the area is crime-ridden or is prone to avalanches, floods or tornadoes.Think of how you're going to finance this, and what you're going to do if you want to sell, or for some reason, have to move out. This is only your home we're talking about here.
You would be surprised at how even parties and simple gatherings become f***ed up because of fundamental goofs like the host telling half the invitees for the first time about the party, once it has begun, or even worse, the following Monday. Yes, I actually got such notifications, more than once. If you're going to go this route, plan ahead by giving a lot of advance notice and cleaning your home so that it's presentable to your guests. Delegate who brings which dish or if you require your guests to pitch in for something. If there will be alcohol at this gathering, make a plan to collect keys at the door or arrange for a designated driver.
These are just some examples of why you need a real-life playbook and have to "audible" when you encounter a bad situation in which your original plan doesn't work. You have to be willing to make some changes because even the most seemingly well-thought-out plan can go bad. You can't play a game on emotion or do something on a whim. Winging it is not an option. Expect the best, prepare for the worst.

I'm not for hesitation or procrastination, but I'm not for taking shots in the f***ing dark, or saying or doing sh*t without thinking things over first either. I've been criticized many times for thinking too much by people guilty of bad impulse decisions. That's fine by me, because I'm not the one stuck with some gas-guzzler, trying to trade it in for a fuel-efficient car. I'm also not the one wasting my money on cable or satellite TV. Nope, I'm saving that money for that next trip abroad that I'm planning.

Having a plan and a backup plan is crucial to your success and well-being. When something isn't working or is off, change the play and make the necessary switch to accomplish your goal. Have the necessary tools to get yourself out of a bad (play) situation. Having a set of plays and executing them is the difference between throwing an interception, fumbling the ball, muffing a punt, getting sacked, and scoring points. Having a set of plans is the difference between making something of yourself in life and going absolutely nowhere.

Have you ever been asked in a job interview, “Where do you see yourself in five years?” Have you ever given that any thought or been able to answer that question? If not, you need to start constructing a roadmap (or a playbook) to your desired destination. Metaphorically speaking, it should have main roads, back roads and detours. It is one thing to envision something for yourself, but a different thing for your actions supplementing your dreams.

In football, tossing a Hail Mary pass all the time, hoping something good comes out of it, is not a strategy. More has to be done by an individual than just being positive and hoping for good things to happen. Actions really do speak louder than words and having an action plan gives an individual a group direction, and works wonders. Sometimes we find ourselves in predicaments that seem demoralizing, leaving us on the sidelines, dejected on the bench. A good friend once told me that life is a lot like the "snowball" in that it can roll both ways, and when there is positive focus combined with positive actions or one victory at a time, the peaks and valleys in life become shorter and easier.
So, what’s in your life's playbook? Have some plans set in place and be committed to them, otherwise you will just be running in place. You are the quarterback of your own life, the coordinator. You are the coach of your own destiny. Execute your plays, march downfield, get the touchdown and get those points. You’ll thank yourself later and you’ll love it when a plan comes together.