Rules of the Game

The object of the economic game we play is to work 40 or 50 years, hopefully at something we enjoy and to amass enough savings and assets to be able to live comfortably after we retire.

Most of us would agree that living on Social Security is not a comfortable lifestyle. The debate about whether Social Security will still be viable or what that might look like in 20 or 30 years from now is a whole separate argument.

Lifestyle is the secret

Imagine this scenario, if you will: You live in the home of your choice. The mortgage is paid off. You drive the car of your choice, with no payment. You carry no balances on your credit cards and carry zero personal debt. With this debt-free, no-payment lifestyle, you also have a monthly income of $8000, whether you get out of bed or not. With no debt, no payments and a dependable income, you would have a lifestyle better than that of most millionaires.

For most people, it would take $1,900,000 in the bank, earning interest at 5% to generate $8000 a month in income. The trick is that in order to accumulate the money, you first have to earn it, then pay all your bills and invest enough of what’s left over to hit that $1.9 million goal. After your mortgage (or rent), your car payment, taxes, groceries and all your other bills, how much do you have left over?

How much do you need?

Maybe $8000 isn’t the right number for you. Maybe it’s $4000, or $10,000. This chart shows how much money you’d need to have invested at what interest rate for a variety of monthly incomes. Pick an income amount that would be comfortable for you, pick an interest rate that you think is realistic and you will see the amount you need to have saved to hit that.

How close are you to where you need to be?

How much do you still need to save up?

With apologies to the folks who claim that mutual funds average 10% to 12% returns, the average investor achieved a 2.6% net annualized rate of return for a 10 year period, 2.5% for a 20 year period and 1.9% for 30 years. https://www.forbes.com/sites/advisor/2014/04/24/why-the-average-investors-investment-return-is-so-low Investing strictly in the S&P 500 for that 10 year period gave a better return, averaging 7.4%.

We know it takes $1,000,000 to $1,500,000 to achieve a $5000 per month income and $2,000,000 to $3,000,000 to achieve a $10,000 per month income. How many people do you know who are going to be able to accumulate that much by the time they retire?

A home business is a simpler solution

A person consistently and diligently working a simple, proven system can in 2 to 5 years build a part-time income of $5000 to $10,000 per month. This residual income, built with a solid company and a solid plan, will act as an asset equivalent to that $1,000,000 to $2,000,000. The money spends the same.

If it takes 5 years to build an income of $5000 per month, what does the first year look like?

It takes $60,000 in the bank to generate $300 per month income. How many people do you know that can save $60,000 over the next 6 months to a year? You could build a business that earns $300 per month in 6 months or so.

We have a simple system where you can invest a few hours per week to learn how to do it, get involved and build up a business and financial security at whatever level you are willing to work for. I don’t know of any job, except a home-based business that can give you this chance, this opportunity.

If this idea intrigues you, reach out in the comments or send me an email and I’ll get you some more information.

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Steve Norris
Steve Norris

After a lifetime of some successes, more near misses and even more outright failures, I find I've gained some skills and some wisdom along the way. I'm in the continuing process of developing more of the former and hopefully a little of the latter as well. I've reached a point where my primary interest is to develop an income that can support what I call a Location Optional lifestyle. I want to live where I want, how I want and when I want. A little narcissistic, I know, but there is only so much time in life and there are still many places from where I have not seen the sun rise. Fortunately, I've been blessed with a wife who feels the same way.