26 A LITTLE EXTRA CAN MAKE A BIG DIFFERENCE

Adam Smith makes the point that, ‘When a person derives his subsistence from one employment, which does not occupy the greater part of his time, in the intervals of his leisure he is often willing to work at another for less wages than would otherwise suit the nature of the employment.’

DEFINING IDEA…

First secure an independent income then practice virtue.

~ GREK PROVERB

Smith always writes from the perspective of the employer. Occasionally he makes a statement that implies that he has considered the position of the employee and does his part, albeit small, to encourage humanity in business. The Wealth of Nations is the capitalist manifesto and as such, it is hardly surprising that the ‘masters’ side is taken. He is, in effect, discussing under what conditions employers are best able to get the upper hand with their employees:‘Firstly the employments must be well known and long established; they must be in their natural state [i.e. under normal trading conditions]; they must be the sole or principal employment of those who occupy them.’

In Smith’s era having your staff work solely for you was beneficial because it limited their options and therefore made them more dependent and potentially more amenable to employer demands. Today this is probably still true to some extent, especially in a contracting market where people are scared. During the discussion, however, Smith inadvertently tells employees how they may gain more control. If all your income derives from one place, any changes in that industry or workplace can be unsettling and stressful. Conversely, having multiple streams of income can make an individual less vulnerable to the whims of employers.

An increasing number of people now work at more than one job. Often this is because fewer full-time positions are available and it’s a policy that has worked well for the employer because it allows them to avoid certain contributions. However, perhaps it’s time that employees viewed this differently and embraced the diversity. By spreading the risk of sole employment and attaining new skills you can become more secure in your own ability to earn a living, irrespective of the employer or economic environment.

Daniel Pink found that the ‘counterintuitive truth’ was that those who ventured out on their own without a traditional job ended up feeling more secure about their future than they ever did with one! But you don’t have to jump out of full-time employment without a safety net. There are many websites offering individuals and companies the opportunity to bid on projects listed in their field of work. Thousands of these are open to professionals in all areas of business, including marketing, design, law, programming, engineering, fashion, finance and consulting. So, test the water and supplement your income - who knows where it might lead?

HERE’S AN IDEA FOR YOU…

Visit www.guru.com to search for projects in your field. Look for small jobs that you might complete in your spare time and bid to carry out the work. This is an excellent way to make extra cash to pay off any outstanding debt more quickly. Paying more than required on your mortgage, for example, could save you thousands in interest. And it could even be the launching pad for a new career. Be sure to seek legal and taxation advice before you start.