Alain Guillot

Life, Leadership, and Money Matters

It's too risky to have a day job --Noah Kagan

7 reasons why it’s too risky to have a day job

According to Noah Kagan, entrepreneur and author of Million Dollar Weekend.

It seems risky to me to have a day job, It seems not risky to start my own business and everyone should be an entrepreneur

Relying on a regular job has many limitations and risks. Here are seven reasons why it’s less risky to start your own business than to have a regular job.

  1. You don’t want to depend on a Single Source of Income: When you depend on a day job you are putting all your eggs in one basket. If something happens to your job—such as layoffs, downsizing, or economic downturns—it can have serious consequences on your financial life.
  2. You have Limited Income Potential: Most companies only raise salaries a small percentage to keep up with inflation. It’s not to their advantage to pay you more. Oftentimes to get a raise you have to get down on your knees and beg or change employers.
  3. You lack Control of your working life: When you work for someone else, you have little control over your job security, work hours, and overall career trajectory. Decisions made by employers, changes in company policies, or shifts in the market can significantly impact your job stability and satisfaction.
  4. You don’t have work Flexibility: Traditional day jobs typically work on a regular schedule, which may not align with your personal preferences or lifestyle. This lack of flexibility can make it challenging to pursue other interests, hobbies, entrepreneurial ventures, or regular life activities outside of working hours.
  5. You are vulnerable to Economic or technological Changes: For example, when COVID arrived, millions of people lost their jobs, or, with the arrival of Artificial Intelligence, many people have also lost their jobs. If you don’t have another source of income, you will encounter economic hardship.
  6. You have limited Fulfillment: Many people hate their jobs, they just feel trapped and feeling trapped in a job you don’t like can lead to stress, burnout, and overall dissatisfaction with life.
  7. Working for others has a huge opportunity Cost: Every hour that you are working for your employer, is an hour that you are not working for you. Working for yourself can give you higher income and more fulfillment. By selling time to others, you could be missing out on other opportunities. 

And that’s it. Those are seven reasons why having a regular job could be more risky than having your own business. 

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