How to Survive and Thrive in Tough Times - Part 1
Written on the 1 December 2016 by James CagneyOver the past weeks I have been covering the coming BUST in the BOOM-BUBBLE-BUST Cycle. Expect this BUST to start within the next 18 months. A series of articles I wrote will be combined into an eBook and will retail for $9-95 (incl GST). I have provided you with links to my previous articles. You can download (free) any of these articles before the official launch of my eBook, now at the final editing stage. Once the eBook is available for sale these links will be removed. Take advantage and get the information now - with my compliments.
Planning your future is like planning a holiday. I always try and follow a structure when I begin:
What I want to cover in this article are the sectors in the economy where you need to 'dig in' or 'jump out of' in order to Survive and Thrive in the BUST ahead. It is a look into the FUTURE. Some of the information below will not be palatable but I always say it as it is. You need to have the courage to face the truth. There are three types of people in this world:
You are welcome to disagree or agree with me. However do not put your rose coloured spectacles on because you happen to work in a particular sector that is going to undergo dramatic change in the next decade. . Remember fore warned is fore armed and don't be the one that that "wondered what happened"
AUTOMATION or ROBOTICS: This industry provides an amazing opportunity for bright young people. Automation in health, education, mining, manufacturing, legal, transport is the future. The development of automation in almost every field will have the greatest impact on jobs in the next 5 years. I have covered these in greater detail in the industry sectors below. This is the 2nd Industrial Revolution. Don't become a 'Luddite' (these people in the Britain that went about smashing the machines that were bringing about change in the industrial revolution). One thing for sure nothing can stop change no matter how hard that may be for you. Take note that whatever task is repetitive it can be done by automation and artificial intelligence.ARTIFICIAL INTELLIGENCE: Developments in this field will change how many industries operate today. The world will be different and most people will be caught off guard and many will lose their jobs. There is a great deal of apathy around and people foolishly believe that businesses will operate the same way forever and their jobs will be secure. In the TRANSPORT industry for example driver-less trucks and trains are already in existence. Drivers will become unemployed and left wondering what happened. Do not let technology creep into your industry and catch you unprepared. I will cover more about this further on in the article.
GOVERNMENT: The Australian government is under pressure by the International Monitory Fund (IMF) to reduce its current deficit or lose its AAA credit rating. If Australia loses it 'triple A' rating the interest on our government debt will increase and the tax payer is already paying millions of dollars every day just in interest to international banks. The easiest way to reduce this debt to cut government spending and keep the IMF and banks happy is to reduce the number of government employees. We can expect many government departments to merge or shrink and be disbanded and cutbacks in almost every department classified as non-essential services such as health care. You may be offered an attractive redundancy package and be tempted to take this but when the economy goes into recession or BUST as it must in the B-B-B Cycle, it will be extremely hard for you to find another job in the private sector.INFRASTRUCTURE: Conversely the Australian Government is being encouraged by the IMF to spend on major infrastructure projects to encourage employment and global trade. Steel from China, machinery, trucks and tools from Europe, the USA and numerous other commodities and products are required. Because interest rates are so low the government will be more enthusiastic to spend in this area as employment will keep voters happy. Keeping voters happy is paramount in every government's mind as the next election is always 'just around the corner'.
CONSTRUCTION: The construction industry is a reasonable place to find employment for the following reasons:
MANUFACTURING: Automation will expand within this sector in order to remain competitive with imports and reduce our high labour cost component. More and more jobs will be lost and unless you are highly specialised or an accountant (a critical occupation as profits shrink and more and more cost savings will be required). Get out of manufacturing as soon as you can. The Aussie dollar is one of the strongest currencies in the world and will retain its value making imports cheaper and local manufacturing uncompetitive.
On the positive side manufacture of specialised tools and instruments for automation and artificial intelligence is still an opportunity for entrepreneurs to consider because the premium price can counteract our higher wages. Germany, Switzerland and Japan are classical examples of this.
MINING: Not a good industry to be in right now. The unstable and fluctuating price of commodities makes it a very daunting investment risk for the major companies. This does provide an opportunity for smaller companies and entrepreneurs to get into the market place but the risk is high and the credit on these ventures is expensive. If these smaller players make inroads into the market the big guns cut prices to force them out or buy them at a bargain prices. This is good for the budding entrepreneurs who make money from the deal but bad for the workers on the ground who are the first to go.
The transport of raw materials from the ground to the foundry and to the ports is being automated at a rapid rate. Driver-less trucks and trains are transporting these loads much cheaper than ever and the processes are controlled by fewer people employed in control centres. These centres can operate 24 hours a day and no overtime is required for truck and train drivers, no sickies and no holiday pay needed. Be wary if you are thinking of a career in mining. The days of big money for labour hire are over in Australia and you will be in for an uncertain future with layoff's 'the order of the day' as mines open and close dependent on the price of commodities.
HEALTH: Artificial Intelligence will change this sector so fast it will make your head spin. Computers which diagnose health issues using huge data bases will remove a lot of guesswork, tests and analysis performed by doctors and nurses right now. The industry into the 22nd century will look like a star trek movie as fiction becomes a reality. However, the aging population will increase the demand for labour and allied services so a career in aged care is a safe bet. Remuneration for most jobs will lag behind inflation as more and more people enter this profession. However, Artificial Intelligence will bring about good change. There will be less misdiagnosis. People will be treated for fatal deceases much more quickly as diagnosis of diseases will be quicker. So look on the bright side as well - it is not all doom and gloom.
The amazing event in the news today is a group of Sydney high school students have developed an anti-parasitic dug called Dara Prim to help people with Malaria and Aids. This is a group of students who used their knowledge of chemistry to do what most laboratories around the world could not do. Unfortunately the American company that has bought the drug has put on 7000% margin on the product. In Australia it cost $20.37 for 3.75mg which will retail for USD110,000. That's free enterprise for you and we hope that profit goes into developing more scientific break through. Encourage your children into the sciences there are good opportunities for them.
EDUCATION: Artificial Intelligence has great applications in this field as children will learn through videos and tutorials on their iPads. Students learn at their own pace and this means bigger classes will be feasible as teachers can walk around classrooms to supervise rather than teach. Staff numbers at schools will decrease so expect retrenchments and lower remuneration as many younger and more qualified teachers, qualified high tech automation, enter the work force.
In a recent survey Australia came 28th out of 49 countries in maths and science competency. This is shocking and embarrassing for us as a nation. Parents need to encourage their children to excel in these two areas because these are vital subjects for a career in engineering, automation, artificial intelligence and all of the sciences. Instead of letting your children play 'battle games' get them into educational programs which make math and science fun to learn. Consider sending your children to universities to study for Science degrees which will enable them to get well paid positions when they graduate.
Once again think on the bright side of Artificial Intelligence in schools. Children who are struggling with maths and sciences can be guided at their own pace. If they don't understand a theory or equation they go back at do it without being embarrassed and showing their classmates that they are dumb. Kids who are more advanced can move on and achieve more in the same classroom. Yes Artificial Intelligence will create better results for children and teachers will just have to adapt.
TRAINING: The specialised training sector will boom as automation and artificial intelligence becomes popular in vocational training. Millenniums and Gen Y's will be attracted in huge numbers as there will be very few job opportunities elsewhere. People who have been retrenched will also need to be retrained and "up-skilled' in other fields.
My concern is that so many of these private vocational training colleges are only concerned with making money for themselves and offer expensive courses which have very little chance of leading to employment. One course that comes to mind is "computer games development". Young people who like playing computer games are being sucked into colleges offering these courses. Many of them do not complete the course and the training companies do not care they already have the parents money and the government subsidies. This is only one example of people 'rorting' the system. So many 'useless' courses are offered none of which can lead to gainful employment in the medium to long term.BANKING AND FINANCE: As the BUST approaches and fewer people are borrowing money and spending less we can expect the banks and financial institutions to wield the axe. Please remember the fat cats at the top of these banks and conglomerates have to keep their shareholders happy if they want to keep their jobs. As Internet banking and electronic technology are already fast becoming the banking system of tomorrow, many branches will have to close nation-wide as banks clamour to cut costs. Once again retrenching people is a good way to show quick savings on the balance sheet. Thousands of people are going to lose their jobs in this area.
FARMING: There will be jobs in this sector as Australia becomes a major food basket in Asia. However, these jobs are usually offered on a casual and seasonal basis. They are lowly paid and do not offer the benefits of 'cushy' office jobs in the cities. Hard work this is an unknown entity for many young Australians. They would rather stay at home and play computer games. Centrelink will have very little choice but to insist they take these positions as the numbers of unemployed increases.
REAL ESTATE: There is a huge change coming in this industry which will affect the following:
Consumers are more aware these days of the tactics real estate agents use to pull the wool over buyers and sellers eyes. More companies are offering facilities for people to buy and sell property without using a real estate agency, for example 'Agent-In- A- Box' and 'Revalu8'. If you want to know more about this click >>> NO AGENT and save yourself thousands of dollars when you buy and sell real estate.
The grey haired Baby Boomers who became real estate agents because there was little other opportunity for employment elsewhere and selling property looked easy.
SERVICES: These people are the most vulnerable. As money becomes tighter in the BUST people cut back on services. They mow the lawn themselves, they clean their windows themselves, they don't service the car as often as they should, they do not send their clothes to the dry cleaners that often etc. etc. Young parents will ask family members to look after their kids instead of sending them to Kindy and After-School care. They won't spend as much on coffees at cafés or takeaways and will eat out and entertain less.
During previous BUST periods people spent on necessities and tried and save money, worried that they were the next to lose their jobs. Avoid these industries for the next 5 years.
As for those employed in the Superannuation Funds I believe the Australian government will need to access these funds during the BUST phase. The government will expose the Superannuation companies for the thieves they are. Super Funds have charged tax payers over $30 billion in fees during the last year and the major banks and AMP took 44% of these Super fees. It won't be difficult for the government persuade the public to let them (the government) to take control of the $2 trillion dollars in Super Funds. They will need cheap finance to prop up the increasing deficit to keep their 'triple A' rating. The government needs the money for massive infrastructure spending to employ the masses. No government will win an election with rampant unemployment. For a full expose of the 'Super Scam' click >>> SUPER SCAM.
On the bright side solicitors and barristers will not have to spend endless hours pouring over legal books and case studies. They simply type in the case scenario and the case will be prepared for them. Think of the time saved and Artificial Intelligence is bound to do a better job researching these cases. However the consumer need not get too excited about this. The legal beagles are unlikely to reduce their fees.
STRATEGIES TO THRIVE IN TOUGH TIMES:
1) Avoid investing in franchises which demand you invest large sums of money. They make unrealistic promises and demands on you. Do not take out a second mortgage on your home to buy a business. What you are doing is buying an income. I am sure you have heard the saying "You are robbing Peter to pay Paul."
2) Look for network opportunities which do not make your friends run away from you. I have friends and colleagues who jump from one network marketing opportunity to another and we then begin to avoid their calls.3) Revalu8 has an opportunity for you to make money as an affiliate when people buy real estate. If you know people who want to buy or sell property tell them about Revalu8. You do not have to be a licensed real estate agent to earn commission. Want to know more about this opportunity? click >>> REVALU8.
4) An opportunity which does not involve you investing last sums of money is Internet Marketing. What you do need is the knowledge to do it. Avoid the spruikers who promise you an easy road to riches. Much of this comes from the Americans who promise you a lot before you buy their education program but rarely deliver. Firstly there is no easy road to riches unless you are the one in 100, 000,000 who wins the lottery. Secondly, the time zone difference between the USA and Australia makes it very hard to get help when you need it.I have followed Brett McFall teaching on Internet marketing for a number of years now. He is a genuine, honest and knowledgeable person and best of all he is Australian. Brett is the author of the book "Make money while you sleep" which is an international best seller. Brett markets a comprehensive course which consists of manuals, DVD's and Videos. He conducts numerous courses throughout the year at the On-line Training Centre on the Gold Coast. He tours the country regularly bringing the latest innovations in Internet marketing to thousands of marketers in the major cities around Australia. Brett has support staff available when you need them and they are most obliging and knowledgeable.
Internet marketing is a dynamic and exciting world. With China and now India moving quickly into the Internet giving access to a multitude of products the opportunity is NOW. Unlike retail and other businesses available there are low set up costs, no staff needed as everything can be outsourced and inventoried through affiliate marketing.
You need to prepare for the looming BUST phase so get involved in Internet marketing now. Learn the business and make extra income for now. Take Internet courses and attend the events which Brett runs around the country. Make small mistakes before it becomes a full time business. Expand your product range slowly. This way you won't have the pressure of having to make enough money to live on. Want to know more about Internet marketing and to investigate what Brett McFall has to offer? click >>> INTERNET OPPORTUNITY.
5) We need to stop spending and pay off our credit cards and reduce other debts. Banks will get tougher with this debt and your assets are at risk if you do not pay. Most people do not have a budget or, if they do have one, they do not stick to it. Putting purchases on your credit card is so easy and the banks make more and more money as you get poorer. One of our associates has a budgeting program which monitors your spending.
6) If you have not refinanced in the last year you are not getting the best deal from the bank. The bank brokers who sold you finance for your home plus investments are more interested in looking after his salary and their job than looking after your finances. You need professional help in this are because most times it more about how you structure your loans than the interest rate. If you want to find out how tho save yourself thousands of dollars over the lifetime of the loan and reducing your current mortgage payments click >>> HERE or go to www,jamescagney.com.au and click on the "Finance" icon.
7) You need to develop the spirit of entrepreneurship within yourself and your family. Break out of the "finish school - get a job-retire" era. Children today are not scared of technology and leave school with good computer skills. A group of young students in India decided that the old nursery rhymes were outdated and they need to be changed to the kids of today. They call these kids "New Age Chicks". They have done such a great job in doing this they now have a UTUBE channel called CHU CHU TV, which airs these delightful clips called "Sing & Play" with modern music, graphics and character tures. They have their own design and recording studio and now they intend marketing merchandise with these character ture including clothing and toys. This is a group of young adults who had an idea and Paul J Meyer, founder of SMI International said "There is nothing more powerful than an idea whose time has come"
Budgeting is like taking out membership at a gym. Many people take out a gym membership and are enthusiastic for a few months then they stop going. They have plenty of excuses why they can't go. This computer budgeting program monitors your progress but if you 'don't go to the gym' or worse still: go to the gym and eat pizza instead of exercising we will catch you and put you back on track. For more information on this click >>> BUDGET.
In "How to Survive and Thrive in Tough Times - Part 2" I give you more strategies to Thrive during tough times. I have an amazing story about adversity during the last GFC which ids designed to give you a reality check of life in recessionary times. Click >>> PART 2 to get these valuable insights.
If you would like advice on how to prepare for the coming BUST OR buying a business OR starting an Internet business OR saving interest on your mortgage give James Cagney a call on +61 416 137 645 or click >>> HERE.
This is not financial advice. You should not act solely on the basis of the material contained in this article for your investment strategies. Changes in government and legislation occur frequently and without prior notice and financial markets are unpredictable.
This information was written and compiled by James Cagney. The opinions expressed herein do not necessarily represent the views and opinions of his associates including
Author: James Cagney