Synthetic intelligence (AI) is inflicting an existential disaster for a lot of staff, myself included. With the rise of AI, I’ve usually discovered myself questioning: what’s the purpose? If AI goes to take over, why trouble making an attempt?
Perhaps you’ve felt the identical approach—nervous about easy methods to safeguard your future from AI. Or maybe you’re a father or mother questioning if there’ll even be good jobs to your children after spending a fortune on their training. If that’s the case, this put up might enable you to and your youngsters put together for what might be a difficult future.
The Existential Disaster You Would possibly Face
An existential disaster is a interval of deep questioning about life’s that means, goal, or worth. It usually includes grappling with questions like:
- Why am I right here?
- What’s the goal of life?
- Does something I do actually matter?
These crises could be triggered by main life occasions like loss, failure, growing old, or transitions equivalent to retirement or a profession change. Whereas they’ll really feel overwhelming—bringing nervousness, despair, or a way of being misplaced—additionally they current alternatives for private development and a renewed focus in your priorities.
Once I first retired in 2012, I confronted my very own existential disaster. It took me years to regulate and discover peace in my new position. I don’t need AI to set off an identical disaster for you, making every little thing you’ve labored for really feel out of date. That may be a double intestine punch.
The truth is, all good issues ultimately come to an finish. When that second comes, you’ll both panic or adapt and discover methods to thrive. And for those who’re studying this, I do know you’re the sort to plan forward and rise to the problem.
The Good Factor About Being Unemployed Or Retired
The silver lining of being unemployed or retired is that there’s no job for synthetic intelligence to take from you. Nevertheless, for those who’re seeking to re-enter the workforce, discovering a job will seemingly be a lot more durable. For retirees, you may merely end up as an bystander, observing AI’s disruption of the labor market from the sidelines.
As a semi-retiree working Monetary Samurai, even this web site is dealing with an existential disaster of its personal. With AI firms like OpenAI, Anthropic, and Perplexity copying my work with out attribution, and Google prioritizing AI-generated content material taken from writers on the prime of search outcomes, driving site visitors to the positioning is changing into more and more difficult.
Initially, my plan was to function Monetary Samurai for 10 years—from July 2009 to July 2019—after which step away from the inventive endeavor. Nevertheless, the beginning of my daughter in December 2019 and the pandemic gave me a renewed sense of goal and extra time to put in writing. I had insights to share, worries to course of, and a have to document this distinctive time in our lives.
Now that the pandemic is behind us and AI has arrived in full drive, my want to pivot and do one thing new has grown. I’m now greater than 5 years previous my authentic purpose of working this web site. Typically, it’s necessary to acknowledge when the tip of a chapter is close to and embrace the chance to maneuver ahead.
Existential Disaster Survival Plan Due To Synthetic Intelligence
Though I don’t depend on Monetary Samurai for survival, it has supplied supplemental retirement revenue that I’ve grown accustomed to incomes for over a decade. Since 2009, I’ve additionally devoted roughly 20 hours every week to sustaining the positioning. Shedding that revenue, together with all of the sudden having 20 further hours of free time every week, could be a big adjustment.
Right here’s my existential disaster survival plan for Monetary Samurai—and for my youngsters, who will seemingly face an excellent harder time getting forward in an AI-driven world. This survival information must also enable you to higher put together in case your occupation is susceptible to AI distribution as effectively.
1) Estimate once you’ll lose your job or livelihood because of AI
Simply as actuaries calculate life expectancy to design worthwhile insurance coverage, we must always estimate how lengthy our job or enterprise may final earlier than being eradicated by AI. Develop a worst-case, base-case, and best-case state of affairs.
With life like timelines for a way a lot incomes potential stays, you’ll be able to higher put together for the worst-case end result. The extra time it’s a must to plan, the higher geared up you’ll be. Don’t be complacent—many individuals stay unaware of the speedy developments in AI and the businesses driving them, leaving them unprepared for what’s coming.
Personally, I’ve set a base-case state of affairs that Monetary Samurai will probably be rendered out of date by December 31, 2027. This timeline provides me sufficient room to arrange, although the tip might arrive sooner with any of the frequent Google algorithm updates all year long.
Beneath is considered one of quite a few examples of particular person, hard-working creators getting punished by Google and AI for no good purpose. Her site visitors retains happening after some head-fakes. I anticipate this to occur to me in the future out of the blue.
2) Save Aggressively—Past What You Thought Potential
Together with your estimated timeline of demise, it’s essential to push your financial savings fee to the very best attainable stage. My suggestion is a minimal of fifty%, and far increased in case your timeline is brief.
In case you save and make investments 50% of your after-tax revenue yearly, you successfully purchase your self one yr of monetary freedom for yearly you’re employed. But when it can save you 70%, you achieve 2.33 years of freedom for yearly you save.
Personally, I plan to extend my financial savings fee from on-line revenue to 90% (up from an 80% common) till December 31, 2027. It’s not 100% as a result of my passive funding revenue falls in need of totally overlaying our present residing bills after we purchased a brand new home in 2023.
Embrace my motto: “If the amount of cash you are saving every month does not harm, you are not saving sufficient!” That is about securing your future—it’s a matter of monetary survival. Push your self to save lots of as a lot as you probably can, beginning now.
3) Diversify Your Investments to Enhance Passive Revenue
Boosting your financial savings fee is just a part of the equation. To safe your monetary future, you additionally want to speculate these financial savings in belongings with the potential for constructive returns. Given the existential disaster dealing with you and your job, it’s finest to concentrate on three core funding courses: shares, bonds, and actual property. This isn’t the time to invest on riskier belongings.
Incomes an inexpensive return, say 4%–8%, in your investments will additional speed up your monetary freedom. Here is a internet value asset allocation framework to think about for those who’re looking for a logical strategy to make investments.
Your final purpose ought to be to generate sufficient passive funding revenue to cowl 100% of your required residing bills. If reaching that milestone feels too formidable, purpose for not less than the Minimal Funding Quantity that makes work elective. Alternatively, goal a internet value (excluding your major residence) of 25X–50X your annual bills.
By December 31, 2027, I hope to realize full protection of our residing bills via passive funding revenue. If I can hit that focus on, I’ll be financially unbiased sufficient that the affect of AI on my energetic revenue will not matter.
4) Diversify Your Energetic Revenue Streams
As you construct your financial savings and diversify your passive revenue, it’s equally necessary to diversify your energetic revenue streams. Ideally, you’ll wish to concentrate on expertise or merchandise which might be more durable for AI to duplicate. In different phrases, take into consideration jobs that require in-person interplay and hands-on work.
For instance, you can construct a clientele instructing a musical instrument, teaching a sport, or providing private companies like tutoring. Alternatively, you can leverage your skilled experience to seek the advice of one-on-one with shoppers who want your steerage. The much less dependent your work is on AI, the higher.
Personally, I’m contemplating constructing a clientele for pickleball and tennis classes. Each time I go to my native public park on a weekday, I see tennis coaches charging $120–$140 per hour. It’s an effective way to satisfy individuals, take pleasure in some sunshine and train, and receives a commission. Going from writing 20 hours every week to teaching for 20 hours every week might generate not less than $2,400 every week. That is nice supplemental retirement revenue!
I might additionally improve my private finance consulting efforts, one thing I do not actively promote on Monetary Samurai because of overwhelming demand. Many individuals must seek for my web page to search out these companies, nevertheless it’s one other avenue to pursue via December 31, 2027.
Diversifying your energetic revenue streams is just good monetary planning. Take a look at how creators on TikTok are branching out to Instagram and YouTube, simply in case TikTok will get banned.
5) Develop Your Private Model
All people has a private model, whether or not they realize it or not. The one strategy to thrive in a world the place every little thing is changing into commoditized is to face out. To attain this, constructing a private model that folks acknowledge and belief is important.
A powerful private model ought to embody these key qualities:
- Reliability
- Likability
- Dependability
- Creativity
In case you could be each reliable and likable, you’re greater than midway there. Folks naturally promote and rent these they determine with. In case you don’t belong to the bulk, it’s much more essential to develop a private model that units you aside.
To amplify your private model—or just make it discoverable—you need to have your personal web site. Consider it as a dynamic resume the place you showcase who you’re and what you’re as much as. Employers and traders admire the chance to study you earlier than committing to a partnership.
6) Make investments Aggressively in Synthetic Intelligence Firms
In case you can’t beat AI firms when it comes to their affect in your profession, you may as effectively be part of them. By investing in AI firms, you’ll be able to hedge in opposition to a tough future for your self and your youngsters. It’s clear to me that many roles are susceptible to being eradicated by AI, and even jobs like driving for Uber or delivering groceries are threatened by autonomous automobiles and robots.
Ever since AI grew to become a game-changer in 2022, I’ve ramped up my investments in each private and non-private AI firms. As a result of I strongly imagine within the AI pattern, I am much less involved with valuations extra targeted on its long-term affect on the labor market.
I personal shares in public firms like Google, Microsoft, Apple, NVIDIA, Tesla, and Meta. As well as, I’ve been dollar-cost averaging into Fundrise’s Enterprise product, which invests in prime non-public AI firms and different non-public development firms.
My purpose is to construct a $500,000 place in non-public AI-related investments and by December 31, 2027. Coupled with my public AI-related investments, I’ll have over $2 million in publicity. If the $2 million compounds at 6% – 15% a yr for 20 years, it should develop to $6.4 – $32.7 million.
7) Make investments For Your Kids At present
I’ve lived in San Francisco since 2001 and have moved via 5 completely different neighborhoods throughout that point. In every of those neighborhoods, my neighbors have been grownup males who nonetheless stay at residence with their mother and father or reside alone of their mother and father’ houses. The explanation? None of them could make sufficient cash to stay comfortably on their very own.
In 10–20 years, synthetic intelligence will make it even more durable for younger individuals to search out well-paying jobs. This actuality means it is as much as mother and father to save lots of and make investments aggressively for our youngsters’s futures right now.
This contains opening custodial funding accounts, contributing to Roth IRAs, saving in 529 plans, and shopping for rental properties for profession insurance coverage. As well as, we should train our youngsters sensible expertise to allow them to use their arms to earn.
Image a world the place, after spending 17–21 years in class, and probably accumulating vital faculty debt, your children are instructed they’ll’t even get a job at McDonald’s as a result of meals prep and cashier duties are automated. Now think about your 30-year-old son, nonetheless residing at residence eight years after faculty, unable to make use of his $1 million pc science diploma as a result of his expertise are not in demand.
Even right now, the median revenue for Ivy League graduates is just about $91,000. That’s not significantly excessive for people who ranked within the prime 3% of their highschool class and will have paid a premium for his or her training.
8) Study How To Use Extra AI Apps To Enhance Your Productiveness
You don’t have to be nice at math anymore—simply know easy methods to use a calculator. To guard your self from AI disrupting your life, it’s essential to grasp as many AI apps as attainable. Whereas most individuals follow ChatGPT and Anthropic, there’s a whole ecosystem of AI instruments designed that will help you excel at your job. Right here’s an inventory of a few of them:
I’d love to make use of AI for higher voice dictation so I can write my posts whereas within the sizzling tub. I’m additionally exploring AI apps that may document podcasts in my voice, create movies, and possibly even draft posts that sound like me—with my edits, after all. Lastly, I wish to improve my web site’s search field to an AI-powered model that may reply any query based mostly on the content material I’ve written.
9) Develop Good Relationships By Serving to Others
Lastly, if we discover ourselves dealing with a dire future because of AI, sturdy relationships will probably be important for survival. The wealthiest and strongest people are prone to turn out to be much more dominant. That’s why it’s essential to begin constructing connections with them right now, ideally earlier than they’re big successes.
When alternatives are scarce, individuals naturally prioritize their very own circles, and people with wealth and energy are not any exception. In case you don’t resemble or share frequent floor with them, concentrate on being useful. The extra you’ll be able to contribute and assist others, the extra seemingly they’ll reciprocate once you want it most.
Benefit from the Good Instances Whereas They Final
Embrace the fact that synthetic intelligence will ultimately eradicate your job and put you out to pasture. Extra importantly, perceive that each one the hassle and cash you are spending elevating your youngsters to achieve success, unbiased adults might in the end be for nothing.
I have not been this assured a few long-term funding pattern since I invested closely in heartland actual property again in 2016 and 2017, believing in a demographic shift to lower-cost areas of the nation. These investments have usually turned out effectively, particularly after the pandemic accelerated working from residence.
Sure, possibly I’m overly influenced by residing in San Francisco, the place the highest AI firms had been based or have places of work. However I communicate to staff at these companies and enterprise capitalists frequently, and there isn’t any stopping AI from disrupting most of our lives. It’s already disrupted mine, beginning with the elimination of my father’s job as a Monetary Samurai editor.
Let’s take advantage of the time we have now left with the roles we maintain and the businesses we run. Finally, they might be gone, however by then, we’ll hopefully have constructed sufficient monetary power to be simply wonderful.
Reader Questions About The AI Existential Disaster
Readers, how are you getting ready for the existential disaster that AI poses to your job, firm, or product? How are you defending your self and your youngsters from a future the place your companies might not be wanted? Do you assume you’ll have the ability to get wealthy sufficient to not care in regards to the destruction AI will convey?
To expedite your journey to monetary freedom, be part of over 60,000 others and subscribe to the free Monetary Samurai e-newsletter and to my posts as quickly as they arrive out. Monetary Samurai is among the many largest independently-owned private finance web sites, established in 2009. All the things is written based mostly on firsthand expertise.
