We are in the last chapter of Rita Gunther McGrath’s book “The End of Competitive Advantage”where she offers advice on how individuals — the rest of us — can get ahead in a world full of market disruption. In a way, her advice parallels the advice she offers to firms. And one key aspect is managing financial resources in a more strategic way. Two quick points are worth thinking about.
First, you will not be able to escape from a boring job that is taking you nowhere unless you have sufficient resources stashed away to survive a period when you are developing new skills or knowledge — before you can start earning again. Do you have a nest egg? Well great if you have one! If you do not, you might start thinking about building one. Or you might need to rely on an “angel” like a relative or a spouse. But you will find it difficult to get out of a bad situation and jump immediately into something better.
Second, given the heightened risk that your job may not be permanent, it may be wise to think about developing multiple income streams. Not all need be highly paid. The goal instead is that they create contacts and help build skills in areas where you think you can find advantage over time.
So, nest eggs and multiple streams! Two tactics for getting ahead!