The key is to build up your side hustle so that it replaces your 9-5. I retired a little early, but I also started FIRE late in life. I took the pension as early as I could and so I had the side hustle and pension. No I am replacing my side hustle income with semi-passive income.
The side hustle idea isn't a bad strategy but the people I know who achieved financial freedom early in life did it by focusing 100% of their time on building a business for many years. I like the side hustle strategy for a year or two to allow people to afford to start a business on the side by maintaining their W-2 income (if this is the only way one can safely afford to start a business). Pension income is going to be taxed at high rates so have to be careful with a strategy relying on future pension or retirement plan distributions.
Sharon, high-income earner here (law). If I had continued to be a high-income earner - without figuring out how to diversify into passive-income investments - I would have retired rich and died poor (or on a fixed income). Thankfully, I saw the light and started diverting my excess income into real estate partnerships (I’m an LP through a PE firm). I enjoy a lot of passive income now. You’re absolutely correct. If you never diversify your income streams - and you stay as a W-2 employee forever - you’ll never be wealthy. At best you’ll be rich. No thanks.
Thank you for sharing your experience! So glad others get how important this is. Diversifying your income stream is extremely important but never talked about much for some reason. Thanks for watching!
Good comments, but your experience and point of view is from a VHCOL area. There are tens of thousands of engineers working in M to LCOL places making well above median wage, and living beneath their means to save 20-30 % of their income & be financially independent by their early 50s. Admittedly, the financial tables have turned in the past decade and it’s much harder now than when my cohort started. “Meds & Eds” & a roof over your head have climbed much faster than income. Still, it’s doable, but the path is more narrow and the ditches are wider and deeper if one gets off the path to financial independence.
Thanks for watching! I generally prefer businesses that don't have the 3 p's that I always stay away from. 1. People: require few or no people (employees or contractors) to run, 2. Property: minimum or no property required (brick and mortar, inventory, etc.), and 3. Paid Advertising: no paid advertising needed to market the product/services.
Your channel is so validating. Thank you.
Thank you for watching and your kind words!
The key is to build up your side hustle so that it replaces your 9-5. I retired a little early, but I also started FIRE late in life. I took the pension as early as I could and so I had the side hustle and pension. No I am replacing my side hustle income with semi-passive income.
The side hustle idea isn't a bad strategy but the people I know who achieved financial freedom early in life did it by focusing 100% of their time on building a business for many years. I like the side hustle strategy for a year or two to allow people to afford to start a business on the side by maintaining their W-2 income (if this is the only way one can safely afford to start a business). Pension income is going to be taxed at high rates so have to be careful with a strategy relying on future pension or retirement plan distributions.
Great set of points and well summarized!
Thank you!!
Sharon, high-income earner here (law). If I had continued to be a high-income earner - without figuring out how to diversify into passive-income investments - I would have retired rich and died poor (or on a fixed income).
Thankfully, I saw the light and started diverting my excess income into real estate partnerships (I’m an LP through a PE firm). I enjoy a lot of passive income now.
You’re absolutely correct. If you never diversify your income streams - and you stay as a W-2 employee forever - you’ll never be wealthy. At best you’ll be rich. No thanks.
Thank you for sharing your experience! So glad others get how important this is. Diversifying your income stream is extremely important but never talked about much for some reason. Thanks for watching!
everyone needs to learn this.
Good comments, but your experience and point of view is from a VHCOL area. There are tens of thousands of engineers working in M to LCOL places making well above median wage, and living beneath their means to save 20-30 % of their income & be financially independent by their early 50s. Admittedly, the financial tables have turned in the past decade and it’s much harder now than when my cohort started. “Meds & Eds” & a roof over your head have climbed much faster than income. Still, it’s doable, but the path is more narrow and the ditches are wider and deeper if one gets off the path to financial independence.
This information is pure GOLD. Wish I’d learned it at 25 and not 59.
Thank you for watching and for your kind words! 😀
Love ur content!
Thank you! 😁
Excellent presentation ❤ 💯
What type if Businesses would you suggest to purchase?
Thanks for watching! I generally prefer businesses that don't have the 3 p's that I always stay away from. 1. People: require few or no people (employees or contractors) to run, 2. Property: minimum or no property required (brick and mortar, inventory, etc.), and 3. Paid Advertising: no paid advertising needed to market the product/services.
Thank you a Million !!! Your channel in my opinion is simply EXCELLENT 💯
@sharonwinsmith what businesses don't have these 3 p's?
It’s only possible if you start very young and you have a VERY HIGH SAVINGS RATE and you invest and not hold debased fiat currency.
So what do you recommend?
Start or buy a business. Business ownership is, and always has been, the best path to financial freedom.