The End Game isn’t a Big Business, it’s producing more Dividends than my COL.
I’ve got to remember that.
I haven’t checked into this blog in a while. I went through some shit that I couldn’t post up here with the same level of honestly to clear my head. (journaling is the key to clearing my head)
The End Game = 4 Million @ 7% APY in mostly dividends
Why?
- The tax on investment income is lower than business income
- @7% it’ll produce 26K monthly
- 26K monthly is more than enough to live an amazing lifestyle. (to date my COL with 3 kids, house, 1 lease is just above 10K /mo)
How long would it take me to save 4 milliion?
- @10K /month = 400 months or 33 years
- @20K /month = 200 months or 16 years
- @30K /month = 133 months or 11 years
- @40K /month = 100 months or 8 years
- @50K /month = 80 months or 6 years
- @60K /month = 66 months or 5.5 years
@100K /month = 40 Months or 3.33 years
But @100K /month, my tax bracket will be obnoxious. Biden is making 400K+ earners get taxed much more heavily.
So what should I do?
There’s options:
- Trade Time into Building Business Systems that increase profits without my time
- Might make sense to build multiple businesses
- These business(s) need to operate without me, or with minimal amount of time
- If I see diminishing returns on the investment of my time (ARML is a very good example) then my time needs to go elsewhere
- Develop the skill of making money with my money
- ONLY DO THIS, AFTER #1 IS COMPLETED.
- AGAIN, Business Systems have the Highest ROI on my time until I can put in ??/month (How much a month into my business system?)
Do I really need 4 Million?
If my COL is 10K /month right now… how much more do I really need?
What if I only needed 2 million?
Rather, HOW could I only need 2 million? That’d produce roughly 12.5k /month.
That might not be enough after capital gains tax of 10-20%, even if I had no mortgage, no car payments and a lot of barters.
Nathan says he was able to travel the world on 20K /month with 1 kid while saving money. So I should be able to do the same with 25K /month with my 3 kids, breaking close to even.
4 Million it is, but I always forget the rule that the rich keep getting richer. Momentum is the X Factor.
Mindset Development & Cash Flow (game by Robert Kiyosaki)
I’ve been spending a lot of time looking at cars, because I dislike mine so much. Heck, I’ve been taking a lot of time to spend money because I’ve forgotten about the real game – building my 4 Million.
That’s where mindset comes into play.
Mindset & Momentum.
My son took his first steps, 6 of them a matter of weeks ago. Shortly after, he’s walking all over the house.
I have yet to take my first steps in building my money system.
I’d say 20K a /month is a nice place to start.
How much do I need to make in order to put 20K /month in a money system? 50K /month.
50K /month = 37% tax bracket
- 22K to the Man
- 18.5K going to the man in Federal Taxes
- 3.4K to State Taxes
- 20K to the Money System
- 8K to COL (cost of living)
Not enough to COL
I need to lower my COL.
Once the kids are out of day care, it’ll be lowered by 2K /month
50K it is.
Action Steps:
- Trade time into a Building me out of my Business System
- Watch for diminishing returns on my time, start new businesses if that happens
- Put $$ back into business systems until it’s 50K /month, then put 20K /month towards my money system
- Reduce COL