Create Your Own Basic Income Before It’s Too Late

Create Your Own Basic Income Before It’s Too Late

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There's a lot of information about basic income nowadays, but there's actually a way to create your own. It's called financial independence and you can do it too. 
#financialindependence #retireearly #earlyretirement #basicincome #savings #makemoney
There are many reasons why you need to create your own basic income before it is too late. Read this and find out why. Start building your basic income today. #makemoney #savemoney #basicincome #financialindependence #retireearly #earlyretirement #fire

FIRE (Financial Independence, Retire Early) can be thought of as basic income. Once you build up your nest egg and let it ride in the market, you’ll have enough to not work again.

Universal Basic Income means that the government or some other entity hands you money just because. In FIRE, instead of money being handed to you, you have to build up the nest egg first. If you work really hard at it, you can become FIRE in less than a decade. Even if you choose to take a little longer to get there, there are at least 30 people who have documented their journey to FIRE online.

Do you really think politicians will ever pass a basic income law in the US? I’m sure widespread poverty will be rampant before a law like that is ever passed in the US. So, you’re probably going to need to create your own Basic Income.

What is Basic Income?

Basic income is the notion that you don’t have to work anymore. You’d be given an income equal to a normal cost of living. No fancy meals or houses, and you couldn’t spend that much on material goods, but it would give you enough monetary freedom to pursue passions for purposes other than money. I guess you could think of Basic Income as Barista FI, where you have your basic needs taken care of, but might take on a fun part time job because you loved it.

The progression of innovative technology has grown increasingly faster, and we’re finally venturing into lifelike robots and better AI, which should lead to higher unemployment. What did we expect from an exponential curve?

Related: Free Financial Independence Course

But There Have Always Been New Jobs Invented!

But what about all the horse and buggy drivers, the chimney sweeps, telegram operators, and the typists?

Sure, there have always been new jobs invented. But at heart, each job consisted of an integral skill — you had to be a human who had a basic level of reasoning or ability to do non-thinking jobs.

Nothing has ever come close to replacing that.

Until this century. The progress we’ve made in artificial intelligence and robotics is severely worrying on a humanity scale for the US. Simply because we’re not a very good when it comes to retraining people for other jobs. Look at what happens to old manufacturing and coal mining towns. What happens when unemployment rises? Do you really want to bet that politicians will have your best interests at heart and create some kind of basic income for a comfortable life?

Going back to college is incredibly expensive and the US does not have high-quality free retraining programs. If you need to learn a new skill halfway through your career, it will be difficult to compete with the 22-year old who just graduated and might understand technology better.

Related: 150 Smart Sides Hustles and Ways to Make Money

Robots Aren’t Able To Replace Humans Yet, Right?

Japan has made considerable advances in humanoid robots, right down to the representation of humanity’s flighty emotions. Sure, it’s not perfect, but how long until it is? Watch this video:

A robot is cheaper than hiring someone every single year, doesn’t need to rest and can work 24/7, and never complains or is late to work. While I think it’s a ways off for high-reasoning robots to be created, the robot above could function as a guide or receptionist who answers common questions. A human could oversee a fleet of them for the questions they can’t answer.

For more manual tasks, there’s Boston Dynamics! These creepy robot dogs might be able to do basic household tasks soon… I mean I love my robot vac and all, don’t get me wrong, but I might be slightly uncomfortable seeing this in my house. Maybe they could make it cuter and turn it into a Shiba Inu?

Structural Employment Is Up Next

I don’t think you can argue no jobs will exist when this happens. But I do think manual labor jobs will be eliminated eventually.

Structural employment is defined as the mismatch of skills between potential employees and what the employers need. In cases of structural employment, there are enough physical bodies who can fill the jobs needed, but those workers don’t have the skills necessary to do those jobs.

The skills necessary to move forward in society in the next few decades consist of more AI, programming, and creative and innovative thinking. Every industry is being decimated by automation.

Many startups seem to be simply recreating existing companies, but with better technology and UI. Companies who are not integrating all their legacy systems or rebuilding their systems entirely from scratch will not survive. A startup that has designed a more functional and integrative codebase will cannibalize those companies.

A solution? If you’re working a manual labor job, or one that could be automated, consider learning some new skills. There are some great full-time coding bootcamps which are free — the hiring company pays the coding bootcamp a recruitment fee when you’re hired. If you can’t swing a full-time break, consider trying to move to a tech company and ask how to get into the more skilled roles. You don’t necessarily have to go back to an expensive school, just show perseverance and self-motivation by studying it on your own time.

Related: Why I’m Considering A Geographic Arbitrage Lifestyle In My 20s

Ageism Is Real

It gets harder to find a job the older you are on average, especially if you don’t have specialized skills. Those skills absolutely are harder to learn if you’re not young anymore. Kids these days are learning about programming in elementary and middle schools! Meanwhile, I was in college before I realized what programming even was. People in their 20s are starting online businesses all of a sudden.

If you FIRE in the next 20 years, you won’t have to deal with this. But even in tech, once you get to your late 30s, that’s old, considering most the employees of most tech companies average 30 years of age.

Retail is Dying

In 2008, there were tons of malls that shut down. They never reopened and are now called “dead malls” in the commercial real estate community.

That sentiment continues today. Amazon is cannabilizing the retail market, bit by bit. Instead of going through a wholesaler or distributor, they’re getting products directly from the brand. Pretty soon they’ll even replace the wholesaler and distributor for brick-and-mortar stores. Amazon probably has the best supply chain out there — and they’re employing human packers, only until the robots can do the same job.

Alibaba is doing something similar in China. They’re utilizing modern technology to revamp mom and pop stores. Sure, it may sound exciting and happy at first, but if you’ve studied businesses, everything is bright and shiny for the underdogs at first. The price for that software is probably not terrible currently, but over time, the price gets raised, until the company can swoop in and replace the entire store.

In the coming years, sales people for retail stores will drop, even more than they do now.

What do I think is the next stage? VR shopping. If we can project intensely real video games via VR, why can’t we do it for any other kind of shopping? Put us on a little platform that keeps us in one place, and let us feel like we’re walking. Or just let us use the keyboard to navigate the store. Attach a sensor on to our hands so we can feel like we’re browsing the items.

Related: Retire 3 Years Earlier By Cutting Clothing Consumption

All These High Tech Things Exist Already — In Another Country

I love Japan. They’re at the forefront of technology innovation. They’re so incredibly polite — and everything is done with honor. If anyone is set up to lead up via robot innovation, it’s them.

This video shows a guy who went to a hotel that  His stay begins at 5:50 in the video, but the first few minutes are pretty interesting as well. He goes to a hotel that is completely run by robots. He checks in with a dinosaur, is led to his room by a mobile robot, and asks questions to a cute foot-tall robot. There’s even a version of an Alexa in his room that turns off the lights, just by speaking!

I don’t think ALL jobs will be eliminated. But the manual labor ones will be in short supply. The ability to think creatively and innovatively will be guiding factors in employment.

So you’d expect Japan’s unemployment rate to be sky-high right? Nope. It’s at 2.4%, the lowest it has been at for 24 years. But Japan also has a labor shortage crisis, due in part to young people not getting married and a growing elderly population. Culturally, people in Japan avoid rejection, which leads to less dating, and thus, less mating! Another factor might be the fact that Japanese companies pride themselves on not firing people and retraining them for appropriate jobs. If you start at one company, you’ll probably be with them for life.

I’m not sure the US would go the same way as Japan if we automated everything here. Capitalism without mercy (unless it’s a PR nightmare) seems to be how we do things. In the US, a company wouldn’t retrain an employee for another role. They’d just be laid off.

Related: Travel Hacking Japan Series

Pessimism? Better Safe Than Sorry!

Maybe this blog post is overtly and extremely pessimistic, but why not plan for the worst scenario?

This probably won’t happen over the next decade. Or maybe even two. But don’t you want to be retired, or at the very least financially independent before that happens? Can’t build wealth without a good paycheck!

But I could be oh, so, very wrong of course! I mean, we still haven’t even built a hoverboard like they have in back to the future! Perhaps the futuristic dystopian movies are clouding my judgement.

What do you guys think?

*I’m not Japanese, so I’m not biased towards them or anything.

Author: Olivia

Olivia worked in finance and wants you to learn the secrets of financial independence. She believes there are so many ways to monetize your life and make money doing the things you're already doing because so many companies offer free money.

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20 thoughts on “Create Your Own Basic Income Before It’s Too Late

  1. Well all this makes me want to do is go to Japan. I think it’s the coolest thing and nothing comes off creepy to me. Humans are just meat bags. Robots are COOL!

    Well you know what side I’ll be fighting on if war broke out…….xD

  2. While a lot of this technology will be very expensive to begin with, I do believe we are going to see some paradigm shift when it comes to employment in the future. While I think it’s impossible to guess exactly what it looks like, there are plenty of reasons (ageism, health issues, etc) where you may need that basic income regardless of the state of employment as a whole. Really well done post Olivia.

    1. Agree! Robots will definitely be cheaper than humans for low-skill tasks. Maybe not now, but that price will keep going down. Plus, it feels some things don’t even require robots, maybe just a better system or app. Many restaurants in Japan just have a vending machine-like thing where you put in money and then give that ticket to someone and they cook it. In Japan, they would retrain existing employees for other roles in the company, but I just doubt most US large corporations would do something similar. Maybe small mom and pop shops would.

  3. New technology and new advances always bring new jobs and new roles to sustain them. However, as you astutely point out, as things get more technologically advanced the skill set to be in that environment and work in that environment it’s harder to obtain. I do worry that in America we are not teaching our kids enough hard STEM skills to operate in the inevitable future that’s already coming. We have dumbed-down math classes and science classes so much over the past 30 years that we are way behind the rest of the developed world. For years now many tech companies have not been able to find the talent they need with American citizens, so they look overseas. It’s definitely worrisome.

    What a great post, very thought-provoking!

    1. I agree! Math and science are pretty easy in this country. When I would visit my cousins in Asia, they were always doing much crazier math than I, and I was even in the gifted classes and some of them were in normal classes! I felt bad about my own education.

      We’re definitely not retraining people, and our shortage of skilled workers is being filled by overseas talent for sure. Which is fair, because we can’t find American labor for it. But maybe we should try harder? That’s why I love the coding bootcamps that are getting set up. Free to people, so they don’t get stuck with a giant bill.

  4. I work in IT in the healthcare field. I am thinking this will be fairly safe until I can reach FI. However it is amazing how fast technology keeps increasing in capabilities! Good (and scary) post!

    1. Very true! So many new languages, software, etc. comes out every year! I feel like companies that work with mostly legacy software are safe for a while bc no one else knows how to run it. Haha.

  5. Robots are great. I’d try staying in a robot hotel for a night. Career and work is going to be very different for our kid. It’s already changing now. Having basic income is a great fall back. Life will be much tougher in 30 years for young people.

    1. They should start one in NYC! I’m sure it would bring costs down, and people who are looking for a deal would not really care if a hotel was run by robots or people.

      Definitely true. Better get him started on some programming languages already!

  6. The funny thing is even though Japan has many capabilities, they still insist on having humans in customer service roles (e.g. – train station attendees, department store clerks, clerical workers, “salaryman”). The advantage they have going for them surprisingly, is by having a low birthrate.

    I am not into social engineering or anything, but it does make me wonder if US were to lower their birthrate, how would it affect society? With baby boomers retiring soon in mass numbers, having less people to fill those jobs should push wages up.

    If Skynet does happen though, I for one, welcome our new robot overlords.

    1. It’s very true! I think part of that is due to corporate culture there. They don’t fire anyone. Once you’re with a company, you’re there for life. Also, yes, they’re facing a huge labor shortage with an unemployment rate of 2%. Yikes!

      Interesting thought. We’re having a lot of issues filling skilled labor, so maybe the tech won’t move forward as fast as we need to?

      I think minimum wage has been pushed up in a lot of cities. Restaurants and small shops are already so expensive here, I can see a lot of them going out of business if they don’t use automation. NYC has gone from $11 in 2016 December, to $13 in 2017 Dec, to $15 in 2018. That’s a 36 percent increase just in two years! While I understand minimum wage hasn’t kept up with inflation in decades, I fear this will do more harm than good. If labor increases 36 percent in minimum wage jobs, where is that cost going to go? It’s going to get passed on to the consumer. Eating out for dates and celebrations is already pricey, if my meal increases by 20 percent, I might not go out anymore and that business could lose its patrons and go out of business.

      Haha, may they be ever merciful!

  7. I keep wishing I hadn’t taken a break in tech as a teenager to do “more exciting things.”

    As a mid schooler I was in the semi-advanced stage with computers for my age, trying to learn HTML etc. Then some life changes and, basically no computer except those at school until I got a laptop for university studies… and boom, left in the dust.

    I’m suffering from that now. Despite having a good paying job.. just about anything I look at to branch out or side jobs is tech based, and I feel utterly equipped.

    Q: and recommendations for free coding tutorials that might actually help in getting jobs of some kind?

    I’m hoping that having started on a blog, aside from being a fun personal thing will help me learn more website building (again) since that seems to be another area that people need help in a lot. But, it’s totally like starting over now that I’m in my 30s.

    As far as future workforce goes, I’m working hard to front load some accounts for my child so that he will have some buffer to explore areas that might actually make a career… or… and I will never tell him this… maybe even be close to financially independent from the get go so that he could lead a “Barista FI” lifestyle if that’s what he chooses… as long as he’s happy and can pay his bills, if he chooses to live a low cost lifestyle, more power to him.

    1. There’s still time!

      If you’re really serious about full-time work, try a free coding bootcamp that has high placement rates. You could try codeacademy :). I know a few who are self-taught. They started with small projects with non-profits, then branched out to startups. All their new clients are from word of mouth!

  8. That dog robot was SOOO creepy. I don’t know what exactly about the movement creeped me out, but I think a lot of people got the same feeling… Probably the fact that you can see it “Thinking” and recalibrating and moving to adjust its actions… ;___; Somehow, it’s more abstract and “not real” when it’s done inside a computer program (machine learning is fun!) but when you actually see a machine doing it, it’s hella creepster…

    1. Very true! They need to put it in a cute shell. Like make it look like a real dog with fur and everything. Then it wouldn’t be as threatening!

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Author: Olivia

Olivia worked in finance and wants you to learn the secrets of financial independence. She believes there are so many ways to monetize your life and make money doing the things you're already doing because so many companies offer free money.

The average savings account rate is 0.1%. The big banks have incredibly low savings accounts rates. CIT Bank offers a 1.75% savings account. You can open an account with just $100 and no monthly fees or charge . Tired of being charged fees and getting peanuts in interest at your current bank? Open a CIT Bank savings account in less than 15 minutes online.

If you have a car, Rideshare apps allow you to pick a direction you want to go twice a day, so you can get extra money going somewhere you were driving to anyway at least twice a day. Get a $300 sign-up bonus with Lyft.

One of my favorite ways ways of monetizing my life is via credit card bonuses with cards that give you cashback or rewards. Check out our review of the Chase Sapphire cards, which give you at least $500 in cash or $625 in travel credit.