This is the case for most of the population. We’re being paid just enough to live so we can keep working, that’s the way the system is built. That’s why School teaches you how to be a good employee and doesn’t teach you how to be a business owner. If you want to get out of this prison going to need to start digging your way out with anything you have.
Start a side Hustle
We all work hard, we’re all tired when we get back for work. None of us have the energy the patients or the will to take on another job. But remember your past decisions got you to where you are right now if you want to continue living that way that’s fine. But if you want something to change you’re going to have to change yourself.
So starting a side hustle is a good start. But it’s very important that you don’t use the money from that side Hustle to buy stuff you want. Your side hustle is not meant to be used to buy a new PlayStation or make improvements on your car. You have to use that money to start to generate an additional income. That could be another business, it could be something online or it could be pretty much anything else. It’s up to you.
Your goal is to save up something substantial something that can sustain your way of life. Meaning if you need $5,000 a month or $10,000 a month to keep your current level, then you need to find some way of generating that every single month. And it’s better if you do it passively because if God forbid you’re sick or if you decide that you want to take a vacation you need some something to cover your expenses. The best way to do that is to calculate your 3% budget.
If you have an investment it should grow about 5% to 10% annually. If you only would withdraw 3% out of that, then you’re not cannibalizing your investment. It will grow slower but it will keep growing.
Let’s assume you’re looking for $5,000 a month, in a year it’s $60,000. So you’re looking for something that’s going to generate $60,000 a year guilt-free so that you can decide how you want to live. Whether you want to keep doing what you been doing so far or you want to change something. Once you don’t have to do something Survive you’ll be surprised how creative you will become. I’m not saying you should quit your job at this point. What I am saying is you need to make sure that your expenses are covered so you can do the things you want to.
Let’s get back to the math if you divide 60,000 by 3 get 20,000. Multiplying 20,000 by 100 get’s you to $2,000,000. That means that you need to have an investment of 2 million dollars in order to withdraw $60,000 each year.
I know 2 million dollar sounds like an insane amount. But it’s not that hard to reach if you’re just willing to wait. You can get there by taking a side hustle and investing all the money you earn. You can start a small business and invest most of the profits. It’s not going to happen overnight it’s usually going to take about 10 years.
But think, isn’t it worth working harder for 10 years so that you can enjoy the rest of your life worth it? I mean people work for thirty, forty, fifty years and never get there. If you’re just patient for the next 10 years you can enjoy 30 to 40 Years of doing what the hell you want. Isn’t that worth it?