What Do I Do with all the Money I made?

[WJWFastLaner]

First post in the forum. Just finished Fastlane Millionaire 4 minutes ago. Here's my question:

I've built up my business to the point it generates anywhere from $45-75k/mo, and I currently have about $220k in the bank. I have done NOTHING with this money. Zero Investments. The book talks very briefly about this subject that I know so little about. Where can I find more information on effective investment strategies? Are there other threads here? Recommended books? Or specific advice you recommend me taking?

Thank you!

 

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[Foogaler]

Send it all to me, I'll take care of it.

If you don't mind me asking, what kind of business did you build? Congratz on your business success, I don't have a good answer for you but I hope you find a solution.

 

[CarrieW]

First post in the forum. Just finished Fastlane Millionaire 4 minutes ago. Here's my question:

I've built up my business to the point it generates anywhere from $45-75k/mo, and I currently have about $220k in the bank. I have done NOTHING with this money. Zero Investments. The book talks very briefly about this subject that I know so little about. Where can I find more information on effective investment strategies? Are there other threads here? Recommended books? Or specific advice you recommend me taking?

Thank you!

there are a lot of different threads about different investments. perhaps you should have a look around and see what excites you and grabs your attention and go from there welcome!

 

[randomnumber314]

First post in the forum. Just finished Fastlane Millionaire 4 minutes ago. Here's my question:

I've built up my business to the point it generates anywhere from $45-75k/mo, and I currently have about $220k in the bank. I have done NOTHING with this money. Zero Investments. The book talks very briefly about this subject that I know so little about. Where can I find more information on effective investment strategies? Are there other threads here? Recommended books? Or specific advice you recommend me taking?

Thank you!

I assume this is hypothetical?

When you first come here there's a list of recent replies. Click the tab labeled "Most Views (Last 360 Days)" read, read, read.

 

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[sle3pyguii]

There are some threads in the INSIDERS forum that talks about stock investments.

 

[H. Palmer]

First post in the forum. Just finished Fastlane Millionaire 4 minutes ago. Here's my question:

I've built up my business to the point it generates anywhere from $45-75k/mo,

Thank you!

Sales or profit?

It's important, because if it's profit, you will have up to 820 000,- in the bank next year.

If it's sales, what's your monthly profit/earnings?

 

[D11FYY]

First post in the forum. Just finished Fastlane Millionaire 4 minutes ago. Here's my question:

I've built up my business to the point it generates anywhere from $45-75k/mo, and I currently have about $220k in the bank. I have done NOTHING with this money. Zero Investments. The book talks very briefly about this subject that I know so little about. Where can I find more information on effective investment strategies? Are there other threads here? Recommended books? Or specific advice you recommend me taking?

Thank you!

You have definitely came to the right place.
Have a look scower through the forum you will find gems everywhere.

 

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[biophase]

Nothing wrong with leaving it in the bank. Losing a few percent due to inflation is way better than losing more on an investment you don't understand.

 

[RHL]

The strongest investment is always in a company you understand. If there's any way that all or part of that 220K could get that 70K/mo up to 100K/mo, that's where you should go.

Bio is 110% correct-any investment you don't understand is going to result in someone drinking your milkshake.

 

[WJWFastLaner]

The strongest investment is always in a company you understand. If there's any way that all or part of that 220K could get that 70K/mo up to 100K/mo, that's where you should go.

Bio is 110% correct-any investment you don't understand is going to result in someone drinking your milkshake.

Ok, GREAT answer, I appreciate that. That's what I've been doing since day 01...looking at my business as the best investment ever. I'm not even close to seeing a cap on my growth...just wanted to start putting feelers out to see if I should be "diversifying" at all. Thank you for your answer.

 

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[WJWFastLaner]

Sales or profit?

It's important, because if it's profit, you will have up to 820 000,- in the bank next year.

If it's sales, what's your monthly profit/earnings?

That is total revenue. My costs are currently at about 30% right now. Then, there's probably about 10% I invest into other projects and revenue streams to GROW the business...some work...some don't, but I did make more sales in Q1 of 2014 then I did in all 2013. Woohoo! Then obviously: taxes...and fun lifestyle stuff come in to place... ;-)

 

[JasonR]

IMHO - it depends.

If it were me, I would be putting the money back into the business to grow it to $100k+ a month. Ideally $250-500k/month.

The rest I would leave in the bank as I would be 100% focused on scaling the business.

No one will ever manage your money like you will, so get good at it.

 

[Magik]

It's all a matter of opinion. To be truthful, a forum is a poor place to ask this kind of question. While I'm not an investment advisor, I'm no dumb a$$. That being said, do your homework before you make any emotional decisions (emotional decisions are the worst kind, almost always).

My opinion is that you need to keep as little money in the banks as possible, especially at a personal level. Anyone who trusts banks these days is not paying attention (remember Cyprus a few years ago?). I'm referring to checking, savings, and money market accounts. IRAs have a little more security from big banking/government meddling.

@JasonR hit it head on. Re-invest profits into your business and scale it. Make sure you have a good accountant to help you keep taxes low and keep you from making mistakes. Beyond that, pay off your debt. No personal debt of any kind. That includes cars, houses, everything. From there, you could loan other people money to start their businesses (venture capitalism), park your money in raw land like Ted Turner and all his billionaire buddies (very smart for a number of reasons), or put it in some low to medium risk investments via an investment account (which would be my last choice after I'd exhausted the others).

Hope that helps.

 

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[Rickson9]

Invest in what you're good at doing that makes money. Doing something because someone else is good at doing something makes no sense and is a good way to burn cash.

Don't succumb to the Bladder Theory of investing where a lump of cash is like a full bladder - everyone seems to have an uncontrollable urge to piss it away.

 

[Deleted21961]

Invest in other entrepreneurs who want to make a transition to fastlane.

 

[Jero]

First post in the forum. Just finished Fastlane Millionaire 4 minutes ago. Here's my question:

I've built up my business to the point it generates anywhere from $45-75k/mo, and I currently have about $220k in the bank. I have done NOTHING with this money. Zero Investments. The book talks very briefly about this subject that I know so little about. Where can I find more information on effective investment strategies? Are there other threads here? Recommended books? Or specific advice you recommend me taking?

Thank you!

I'm more curious about the way you come to generating the $45-75k/mo. What kind of business are you running? Or, if you may not want to share this intel, could you describe how you come up with starting initially the kind of business you are in? I'm unsure about your location, but is it worth to start such a business internationally?

Thanks!

 

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[Kak]

Lots of these threads lately. Are we really this bewildered by money in a bank account? Seriously for those of you who keep asking this question go read a Dave Ramsey book.

I personally like the stock market. It is liquid and you are buying little pieces of companies. In retirement, I plan to fully manage my own portfolio.

 

[MJ DeMarco]

I've built up my business to the point it generates anywhere from $45-75k/mo, and I currently have about $220k in the bank.

Clearly, the best investment you have is your own business. And that is central to a Fastlane.

Where can I find more information on effective investment strategies?

Any personal finance book at Amazon will do. Dave Ramsey is mentioned a lot.

However look at it this way...

You have a garage and you need to use ANYTHING in that garage to get across the country where there's a pot of gold, or financial security.

In your garage there is

1) A lawnmower

and

2) A Lamborghini Huracan.

In essence, you are asking questions about the lawnmower. How do I make it go faster? What's the best way to run it? How do I make it fit my needs? Uhhh.... hello? Do you not SEE the LAMBO???

Focus on your Lambo. Accumulate cash. Keep it safe. As @biophase mentioned above, I'd rather lose 2% a year to inflation (while making $500K/year) than lose 40% of it to an investment I didn't understand, or to a market movement I should have never assumed.

That said, if it were me, I'd put it in a brokerage account and move it between currencies and short-term municipal bonds. Both should be able to keep with inflation, and heck, maybe even get you 1% tax-free. The purpose is not wealth, it's preservation. The wealth part you got covered with a great business.

Hope you get a chance to share some of your experiences in building yours.



DISCLAIMER: THE ABOVE IS NOT TO BE CONSTRUED AS FINANCIAL ADVICE. PLEASE CONSULT A REGISTERED FINANCIAL PROFESSIONAL FOR *REAL PROFESSIONAL ADVICE* FROM A NON-MILLIONAIRE WHO CAN TEACH YOU HOW TO BECOME A MILLIONAIRE. LOL

 

[ZCP]

She lives, she lives...... what a great thread this was....
https://www.thefastlaneforum.com/community/threads/one-trick-pony.523/

 

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[socaldude]

You can only catch one rabbit at a time. Don't try to catch more than one or you will catch NONE. Focus on your business. How can you scale more? What sweet spots in your business can you tweak?

Keep cash. Its the blood of a business and you will sleep like a baby at night. Cash is king.

 

[Unknown]

First post in the forum. I've built up my business to the point it generates anywhere from $45-75k/mo

Apparently I'm the only one that thinks this is an epic first post, lol.

Check out http://www.mrmoneymustache.com/2013/02/22/getting-rich-from-zero-to-hero-in-one-blog-post/

He has some great info.

 

[CarrieW]

Apparently I'm the only one that thinks this is an epic first post, lol.

Check out http://www.mrmoneymustache.com/2013/02/22/getting-rich-from-zero-to-hero-in-one-blog-post/

He has some great info.

probably

 

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[royalflush]

Invest in real estate. And collect rent. One day, if in case you lose your business, your assets will protect you.

Sent from my C5303 using Tapatalk

 

[GlobalWealth]

Of course investing in your own business is wise as you have the most control and the most knowledge on how to make the investment worthwhile.

However, one of the biggest mistakes I see entrepreneurs make is to invest 100% in their own business after they are making surplus cashflow.

If you are making $5-10k/month, then of course you need to focus on your business because any distraction will likely lead to doom.

But if you are making $50k/month and you can reinvest part of that, but still have surplus, now is the time to diversify because it will limit your risk from economic downturn or even your own poor business decisions.

But the answer of where and what to invest in is a more difficult decision.

Do you want to just park cash but remain liquid? The consider MJ's post above - spread across a few currencies and short term bonds.

Do you want your money to grow slowly but surely? Consider a diversified stock, bond, cash portfolio of low risk investments. If you don't know this field, get some references and find a money manager. He may cost you 1% of annual assets, but if you can earn 5-7%, then it is worth it.

Do you want to get out of the financial sector and own hard assets? Consider real estate and precious metals. Look at the Forbes 400. How many of them don't have real estate in their portfolios? Almost none.

Or maybe you want to speculate with some of the money. Consider private equity or angel investing in startups. Just understand that out of every 10, you may hit 1 homerun, 2-3 base hits and the rest will strike out.

 

[RogueInnovation]

What is wrong with your mindset that is causing you to freak out? (bladder theory like rickson said)

Gaining money isn't how you win, its about transmuting that cash into, control and time.
Right now you feel outta control so are wild inside trying to find it in a world you don't yet understand.

I have never found much advice on this, but for me, controlling that urge is all about patience and looking ahead, and "moving slowly, so clarity is gained quickly".

Money isn't validation, it isn't social status, it isn't self worth, it is a mere example of your process, and what you do with it is an indicator of how big and brass your balls are.

My advice is spend a dollar on some tea, think on it yourself for a while, and make sure you don't do anything that will jeapordise you in the long term.
Start reading up on taxes, finance, and allow yourself some years to grasp it.

A few 100k in a bank is quite normal. Its not time to panic.

 

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[RogueInnovation]

You can also start creating budgets for purchases.

The reason you budget first is just so you aren't buying things because of brain spasms. To make sure you think it through and don't overlook better opportunities.

 

[Leo Hendrix]

Bitcoin

 

[Developmental]

buy one of these
<----

(tongue firmly in cheek)

 

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[GuestUser112]

Bio is 110% correct-any investment you don't understand is going to result in someone drinking your milkshake.

Let there be blood: my favorite movie of all time. I DRINK YOUR MILKSHAKE! DRAIIIINAGE ELI, DRAIIIIINAGGEE. Lol.

OP: What I always say to people that don't know what to do with all their excess 'savings account' money is to invest in really safe stocks that pay higher interest than a savings account. For example, instead of putting it into a Scotiabank savings account, you could choose to buy Scotiabank stock instead, and then you can either reinvest your dividends (research DRIP) or just cash them out and use them to pay your bills. It's like free money! Of course, champion investors like Warren Buffett don't like this strategy because companies that pay dividends are reinvesting less money into the business but with a safe stock like Scotiabank you aren't really going for huge growth, just stability. Other companies that are good for this are oil pipeline companies, like Enbridge. Enbridge owns pipelines all over North America, and they charge tolls to every oil company that uses them. Very safe investment.

However you should do your own research. It's your money after all.

 

[MJ DeMarco]

Bitcoin

LOL. Way to recommend something most of the world doesn't understand. A perfect storm for ignorant "investors" to take a huge haircut while those who do understand make the bucks.