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Thinking about leaving your job?
The amount of risk is simply based on assets and lifestyle expectation.
I’ve been thinking a lot about this, here’s the conclusion I’ve come to...
The amount of risk is simply based on assets and lifestyle expectation.
I’ve been thinking a lot about this, here’s the conclusion I’ve come to...
Really what you care about is running out of money - this is basically the only thing.
Lifestyle expenses not only outpacing your income, but also chewing into working/investment capital - that is your assets.
Lifestyle expenses not only outpacing your income, but also chewing into working/investment capital - that is your assets.
First, let’s define assets.
This could be simply cash, rental property, stocks, bonds - basically anything that can pay you or you can use to buy things that pay you.
But the more I thought about it, I realized that...
This could be simply cash, rental property, stocks, bonds - basically anything that can pay you or you can use to buy things that pay you.
But the more I thought about it, I realized that...
When considering the risk or possibility of running out of money, you need to also consider your other assets.
These could be intellectual property, websites, social media audience, family support, and especially skills that you may have already learned that...
These could be intellectual property, websites, social media audience, family support, and especially skills that you may have already learned that...
can work heavily in your favor - reducing the risk of leaving your job because you have many options for creating income.
If you’re considering leaving your job, I highly recommend thinking about asset diversification, giving you options.
These options could be:
If you’re considering leaving your job, I highly recommend thinking about asset diversification, giving you options.
These options could be:
Building a considerable social media following and understanding how to monetize it.
Learning a new skill such as coding or website development.
Starting a blog and learning how to monetize it.
Creating a product or any side hustle which is scalable through e-commerce
Learning a new skill such as coding or website development.
Starting a blog and learning how to monetize it.
Creating a product or any side hustle which is scalable through e-commerce
In our case, one of the unusual assets we have is our large family. Yes they eat, and take up resources, but they can also tear through any work around the house, or business at an absolutely alarming rate. My point is think outside the box about all your assets...
You also need to make sure the money you have is working as hard as possible for you. If you plan to live on some of the income from investments, it’s not uncommon to earn 15-20% cash return from small multifamily rentals even when you’re paying for management.
Consider the monthly income difference from this vs. 4-6% commonly earned high yielding equities.
I really believe that everyone has far more assets available to them than they may believe.
So what about liabilities or lifestyle?
So what about liabilities or lifestyle?
One option you may have at this point without adjusting lifestyle could be:
Refinancing your current home, taking the payoff date back out to 30 years. Don’t need to cash out, just reduce payments.
Also...
Refinancing your current home, taking the payoff date back out to 30 years. Don’t need to cash out, just reduce payments.
Also...
Look at short term loans such as auto loans where you could do the same thing - or just pay them off 1-2 years early, killing another monthly expense. If your business does well, you can just pay it off at the same time as the original loan.
Obviously, if you really have to, there are 1000 tricks to saving money on food, clothing, and literally any part of your life. But what everyone is afraid of is lifestyle reduction...
If you write down all the assets you have and work on potential income from all of those sources, you may find that what you thought carried a lot of risk, wasn’t very risky at all.
