Saturday, September 22, 2018

Kids and Mortgages

Bosses love it when a Breadwinner buys a house and has a baby. There is nothing that kills activism like a roof and a kid. If you are living hand-to-mouth, both a mortgage and a child share the characteristics of a long-term fixed financial commitment. In the UK, you can even get 35 year mortgages. Some kids don't leave home till 35. 

Salaries also have bond like commitments. Particularly if there is a 'job-for-life' culture. If you work in a job where you have to do something pretty bad to get fired, and the company doesn't take too many risks. This means you can match a job to the life-style you have become accustomed to.

As the Breadwinner, you become a vital cog in the wheel. It is the reason people take out life-insurance. Since if you die, it isn't only an emotional loss. If you die without insurance, the people under the roof will have a big problem.

The rules are different for people with Engines. If you have an investment that earns more (on average) than you spend - you can take more chances. There is nothing stopping you from working. The story is just slightly different. If you want to retrain and do something else. You can. If you want to take a chance at starting a new business. You can. If you want to stay at home with the kids and dog. You can.

Obligation is a great incentive. Sometimes you just do what you have to do. For most people in the world, this is what drives our decisions. Get a job. Pay the bills. Provide. There is however another option. Gradually you can build up a Buffer. If you can get a gap between your spending and your income. If you can put that money to work. If you can let it grow.

Beyond Financial Security is Freedom. Beyond Freedom is Fulfilment. Fulfilment is a better incentive than obligation.

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