Get Paid In The Shade
Retaining Profits Ang Growing More
After your first investment proves to be successful, continue saving and planning in the same manner that led you this point. Put aside a percentage to your emergency fund and replenish your business reserve. Repeating these steps will ensure that your reserves never dry out and further strengthen your core finances as you move into tertiary sources of income. Furthermore after moving through this cycle a few times you have the potential to remove yourself from the rat race of being an employee and focus solely on creating more and more sources of income. In turn, your new financial freedom will allow you to pursue your true passions if you haven’t already done so without sacrificing your income or or reserves.
If you have followed these steps closely up to this point your financial literacy should be keen on the ideas of saving, making it natural for you to put money back into your reserves. The next step in this line of thought would be to set a new goal for your business or set your sights on a new source of income . One option could simply be applying new marketing strategies to your existing product or service or even developing a complimentary service or product. The other option would be to diversify your income and develop a stream of revenue in an alternative industry. Be wise in this choice as to not cause instability with your first investment.
Leaving The Rat Race Behind
With multiple sources of income in effect, the pressures of traditional work become irrelevant. When done properly, you can move from supplementing your employment income and relying less on a job to not needing a job at all and surviving solely on your businesses. Most would consider this the final step of financial independence as your well being is no longer dependent on your primary job. Use ultimate caution when removing yourself from the stable job. It is recommended to have 2 years worth of expenses set aside in your emergency fund before taking the leap.
Enjoying The Shade
One can also consider creating a rewards fund at this point in the journey. Small personal rewards like vacations, phone upgrades and other commodities are to be expected, but kept to a minimum while developing your stability. When you have your money working for you and earn in excess you can apply the same saving practices to aim for larger rewards such as cars, homes, and international travel. This practice further engrains the idea of saving and prevents the use of emergency funds or business funds for recreational activities. In addition to considering these expenses separate from you all others it’d be in your best interest for them to be useful for the business as well to get more bang for your buck!
Reaching this point of the journey will take some time and discipline, but with patience and consistency you will undoubtedly reach a point where your efforts start to pay off. The biggest benefit of them all is peace of mind for yourself and your family. With the burden of finances gone, you can pursue activities that bring you joy with no hesitation and march to the beat of your own drum. Most importantly you’ll be a source of stability for those around you and provide a path and an example for them to achieve similar goals.
Money Seeds chapter seven completes the series. Stay up to date with our blog!
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