The 9-5 job often keeps people living paycheck to paycheck, but not for the reasons you might expect.




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Chapters

00:00 Start Here
01:22 You Get A False Sense of Security
02:56 A Predictable Paycheck Encourages You to Live Paycheck to Paycheck
04:42 A Predictable Paycheck Encourages You To Delay Action
06:32 It Traps You In One Stream of Income
08:22 It Consumes All of Your Time
10:25 It Creates Fear of Trying Something New


Many people who work a 9-5 job have a good salary, good benefits, and feel some level of security; however, despite this, many 9-5 workers are still living paycheck to paycheck. 9-5 jobs are often very comfortable and it is this comfort that often keeps people living paycheck to paycheck. In this video, I talk about 6 reasons on why the 9-5 job keeps people broke and living paycheck to paycheck.


1. You Get A False Sense of Security

Oftentimes when you work a 9-5 job, you feel a decent level of security that you can depend on the job and your future is secure. This causes people to not take steps to financial prepare for life's challenges and not create an emergency fund, grow their money with investments, and be living paycheck to paycheck. However, no job is 100% secure and eventually many people come to the realization that this job they thought was secure actually wasn't and they are not prepared and have financial problems very quickly. It is important to financially prepare for life's surprises or you will end up broke because no job is 100% secure.

2. A Predictable Paycheck Encourages You to Live Paycheck to Paycheck

One of the biggest benefits of working the 9-5 job is having a predictable paycheck where you know how much you are making every week. This gives you a specific amount that you can base your life around which allows you to do things like take on long term commitments like a mortgage, create a higher budget, and plan for the future more. This predictable paycheck, however, often encourages people to live paycheck to paycheck because people start to believe that their paycheck will always be coming and don't take steps to financially prepare in case they no longer have a paycheck.

3. A Predictable Paycheck Encourages You To Delay Action

Another side effect of having a predictable paycheck is that you often feel a certain level of security that you will continue to have this paycheck in the future that it encourages you to delay taking action to reach your financial goals. When you feel secure at your job, you don't feel a sense of urgency and delay taking action because you believe that there is no rush. It is important to know that no job is 100% secure and feel a sense of urgency to reach your financial goals.

4. It Traps You In One Stream of Income

When you work a 9-5 job, you often become content with your paycheck being your only stream of income, which can be a dangerous thing because (1) you are 100% dependent on getting money from your paycheck and (2) making money is 100% dependent on your labor. If your paycheck stops coming in for some reason, then 100% of your money stops coming in and you become broke. It is important to take steps to create multiple streams of income in your life, which is realistic for everyone through things like investing in index funds, receiving dividends, or finding a part time side hustle. And even if they are only a small percentage of your income, if you lose your paycheck, you will still have some other streams of income generating money.

5. It Consumes All of Your Time

The 9-5 job is theoretically only 8 hours a day; however, the reality is most people's day is connected to their job doing things like getting ready for work, commuting to work, and doing final domestic duties before the day is over. This prevents people from being able to take action to be more organized financially or have the time to seek better jobs if they are making a low income. It is important to take steps to build a financial nest egg in case you need to free up some time in your life.

6. It Creates Fear of Trying Something New

When you work a 9-5 job, you receive many benefits that makes your life comfortable like a predictable paycheck, employee benefits, and a sense of security. Oftentimes, however, these benefits create this fear to move on to something new, possibly better because now you have something to lose. Then, people become content spending all their money and living paycheck to paycheck because they feel stuck at their job.


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