• The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success
  1. Join 50,000+ entrepreneurs
    who are kicking butt and
    winning their dream life.

    Unscripted™ Entrepreneurship:
    A Business That Pays More Than Money, It Pays Time.

    "Fastlane" is an entrepreneur discussion forum based on The Unscripted Entrepreneurial Framework (TUNEF) outlined in the two best-selling books by MJ DeMarco (The Millionaire Fastlane and UNSCRIPTED™). From multimillionaires to digital nomads, the forum features real entrepreneurs creating real businesses.

    Download (Unscripted) Download (Millionaire Fastlane)  Register
    Registering for the forum removes this block!

€40,000 Sitting In Bank...Don't Know What To Do!

Discussion in 'General Entrepreneur Discussion' started by Empire, Mar 7, 2019.

  1. Empire
    Offline

    Empire Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

    Messages:
    50
    Likes Received:
    61
    Joined:
    Feb 27, 2015
    Gender:
    Male
    Rep Bank:
    $361
    Hello Everyone,

    I am requesting advice, opinions, thoughts from anyone who wants to share.
    I have learned so much from just reading what members have to say in this forum. This place is filled with very smart people and I admit that sometimes I just cannot keep up.

    Right now I am really doing my best to improve my mindset and change the way I have been living my life. As with many others, I have a bunch of negative stuff going on in my life that kind of weighs down on me....(constantly at the back of my mind). I explained some of it in my last thread.

    Anyway, it's not an excuse...I just want you to know that all that stuff kind of fills up a lot of my mind which in turn affects me thinking up new ideas or even making smart decisions!

    Example: I worked very hard for years to save up €40,000. It is now sitting there in my bank....doing nothing and I just cannot think up any ideas of what I should do with it!

    Before anyone jumps on me for being foolish enough to just let my savings sit there in the bank...I KNOW...I hate wasting this opportunity to make my savings work for me but I just do not know where to turn!

    Some Background: I am living in Spain and I work online self-publishing. I earn enough to support myself but it needs to be scaled up if I want to feel more financially secure. It is an average earning for here in Spain...at best. For USA it would be considered a poor wage.

    I am living in a rental apartment - €400/mo which is cheap compared to many other countries and I manage to pay it fine...but of course I hate renting and wouldn't mind a place of my own.

    Yes I could put all that savings into a deposit for a home and mortgage but it would clean my bank out, (no security if something happens), and seeing as I don't earn a ton of cash it would take me years again to build that back up again.

    I wanted to have enough saved to buy a home cash but 40 thousand is not going to cut it. So the other option could be to invest the money, or use it to scale up my earnings in hope that maybe I could earn enough to maybe purchase a home.

    Of course, this isn't just about "feeling secure" with a home and paying a landlord each month. If you read my last thread you will know I have Huntington's Disease looming over me and I am struggling to decide.....now that I have SOME savings.....do I use it to somehow find a way to make that money work for me....or do I play it safe and just get a mortgage for security AND THEN work hard to save again?

    I want to enjoy the life that I have now...but I also want some security. If I put some money into finding a way to scale things up with my earnings then yes, that would be great because then I could build my business AND maybe build up enough to even purchase a home. This could take years though.

    OR...I just go the safe route...get a mortgage and try hard to save money again. I would have MY roof over my head BUT all my savings would be wiped out in one go buying a home....which is kind of risky.

    I am sure there are other things I can do with my savings but there is so much information out there I get overwhelmed. I lost a lot of money in the recent cryptocurrency crash and so I guess I am scared of making the wrong investing move.

    I apologize, I know this may read like gibberish...I am not as smart as many members on this forum and so there are many things, in business and money, that I just do not know about.

    I don't know what to do, I don't know where to turn. I take care of my dad because he has progressed Huntington's and when I see him lying in that bed, I see me in 10 years.....and it scares me.

    I worked so hard to save that money.....to use it wisely....and now that I have it I don't know what to do!
     
    ruzara5, 100k, astr0 and 2 others like this.
  2. Jeff Noel
    Offline

    Jeff Noel Silver Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    350
    Likes Received:
    591
    Joined:
    Oct 26, 2018
    Gender:
    Male
    Location:
    Quebec, Canada
    Rep Bank:
    $2,245
    So, what do YOU want ?

    You say you need to scale your business to earn financial freedom. Why not invest in what's already working for you so it scales up to the desired level ?

    It would be easier to get a house once you're financially free.
     
  3. business_man
    Offline

    business_man Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

    Messages:
    54
    Likes Received:
    89
    Joined:
    Nov 25, 2014
    Gender:
    Male
    Rep Bank:
    $602
    ^^^^^ This

    Bounce off what you have right now. Start learning how to scale a business, good resource to start is MJ's books "Millionaires Fastlane". You will get plenty of ideas in this forum too.
    Not sure what you do exactly, but there are two things to learn really:
    1. how to get more clients - if you can automate the process later - awesome.
    2. and how to automate/delegate all extra work you get - basically create a system to fulfill client needs.

    Obviously different services, price points and business modules dictate a bit different approach, but all the basics are covered pretty good in MJ's book :)
     
    ruzara5, Empire and astr0 like this.
  4. Eskil
    Offline

    Eskil Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    1,800
    Likes Received:
    7,320
    Joined:
    Jul 18, 2012
    Gender:
    Male
    Location:
    Scottsdale, AZ
    Rep Bank:
    $49,601
    One thing you left out is how much time you have to invest. Or to put it this way - how many hours can you devote per day or per week if you sat down and either scaled your current business much further, or took on a new project?

    It seems you also sort of answered your own question about the mortgage here:

    Like @Jeff Noel also said - it will be easier for you to fulfill your dream about your own house after you have achieved more of the financial security. At least you have a roof over your head until you do, even though you may not feel like renting is ideal.

    If you wanna do something else than self-publishing , look around this forum for "Notable" or "Gold" threads for inspiration and ideas. There are tons!
     
    ruzara5, .B., BaraQueenbee and 4 others like this.
  5. njord
    Offline

    njord Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

    Messages:
    78
    Likes Received:
    104
    Joined:
    Nov 24, 2016
    Gender:
    Male
    Rep Bank:
    $539
    I would just buy a house its always a good investment you can always sell em.

    ...Or you could donate it to a good cause.... I happen to know a really good one:devil:
     
  6. business_man
    Offline

    business_man Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

    Messages:
    54
    Likes Received:
    89
    Joined:
    Nov 25, 2014
    Gender:
    Male
    Rep Bank:
    $602
    Then I would say - buy an apartment with bank money (we have 20% down payment, not sure how is it in Spain). Or couple if you can sort out financing. Air BnB it for quicker turnover (you need to research that - average booking rate in your location, best locations for air bnb type of RE, etc.). Let the tenants grow your share in the apartment/s, growing your capital. Then sell and you will not have a problem where to put 40k, instead, you will have 100k problem, haha :D
     
    Empire and Jello like this.
  7. Vigilante
    Offline

    Vigilante Legendary Contributor Staff Member Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    9,723
    Likes Received:
    55,903
    Joined:
    Oct 31, 2011
    Gender:
    Male
    Location:
    Gulf Coast
    Rep Bank:
    $193,289
    Dubidu, Empire, Jello and 3 others like this.
  8. Kevin88660
    Offline

    Kevin88660 Bronze Contributor I've Read UNSCRIPTED

    Messages:
    118
    Likes Received:
    116
    Joined:
    Feb 8, 2019
    Gender:
    Male
    Location:
    Singapore
    Rep Bank:
    $649
    I am a financial consultant.

    Congrats for building up a saving for yourself. Sorry to hear that you lost money in speculating on crypto.

    Are you an employee or self employed. Your rental is cheap. I dont see the need to buy a flat. You are going to pay interest for a mortgage too.

    Are you excluded from disability health insurance? What insurance coverage do you have? Does your country provide free medical care?

    It seems that your primary concern is about the losing the ability to make an income and having the need of someone to take care of you.
     
    Empire likes this.
  9. ExaltedLife
    Offline

    ExaltedLife Silver Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    310
    Likes Received:
    592
    Joined:
    Nov 10, 2015
    Gender:
    Male
    Rep Bank:
    $2,510
    Invest in your health.
     
    Empire likes this.
  10. Empire
    Offline

    Empire Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

    Messages:
    50
    Likes Received:
    61
    Joined:
    Feb 27, 2015
    Gender:
    Male
    Rep Bank:
    $361
    Yes, that is one of the options I have been thinking about. I am not 100% sure what is working but maybe if I pulled away say €5,000 and used it to scale up what I am doing that may bring more money in which in turn may help me to save up/invest more.

    Yes, being financially free would certainly make the choices feel less risky.
    Thank you.
     
  11. Empire
    Offline

    Empire Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

    Messages:
    50
    Likes Received:
    61
    Joined:
    Feb 27, 2015
    Gender:
    Male
    Rep Bank:
    $361
    Yes. What has happened is that I have arrived at what seems to be a set amount of earnings coming in each month. It's like I hit a wall and need to climb up and over it to get to the next level of earnings.....scaling.

    Maybe paying for outsourcing will get me over that wall.
    Maybe I need to tell myself that this is the way it's going to be this year so you may as well put some of that money into trying to scale up your biz.
    Maybe put another €5000 into some sort of investment for the year.

    The stuff with caring for my dad and how I need to accept it into a daily/weekly routine has to be accepted. I need to understand that there is nothing I can do about it. So, instead of worrying about the issue....accept it...and work super hard for this year to scale up.

    Thank you.
     
  12. Empire
    Offline

    Empire Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

    Messages:
    50
    Likes Received:
    61
    Joined:
    Feb 27, 2015
    Gender:
    Male
    Rep Bank:
    $361
    Well, if it something I have made my mind up about then I will make time.
    I got to this point in savings because I live frugally. I don't own transport, (cycle everywhere), I don't eat out or go out much, I don't spend money on things I don't need, haven't dated for a while to stay focused and avoid all the BS emotional stuff....etc.

    This has all helped me to save...then my circumstances changed...(what my health will be like in 10 - 15 years), and now I am not sure what I had planned for those savings!

    Yes...you are right. Maybe i just need to dig in this year and focus on that.

    Yes I will do that. I am looking to build more sources of income because with self-publishing I do not feel fully in control, (Amazon...KDP). Anything where I can work online to create at least a handful of semi-passive residual income. Self-publishing is the closest i have come to that. I still get paid for books I created three years ago.

    Thank you.
     
    Eskil likes this.
  13. Empire
    Offline

    Empire Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

    Messages:
    50
    Likes Received:
    61
    Joined:
    Feb 27, 2015
    Gender:
    Male
    Rep Bank:
    $361
    Yes...that's true. With what I have in savings I would have no choice but to take out a mortgage. After fees I would have very little left for anything else for at least a few months until I can build up savings again.

    Haha...I will get back to you on that.

    Thank you.
     
  14. Jeff Noel
    Offline

    Jeff Noel Silver Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    350
    Likes Received:
    591
    Joined:
    Oct 26, 2018
    Gender:
    Male
    Location:
    Quebec, Canada
    Rep Bank:
    $2,245
    That's the best move in my opinion. You don't have to use all your cashflow, you definitely could use it as a cushion to fall back onto if things go south for some reason.

    With that said, if I was you I would definitely invest into an Insider subscription on this forum. There's ton of value and some valuable tips on how to invest the rest of that money "safely".
     
    Jello likes this.
  15. Empire
    Offline

    Empire Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

    Messages:
    50
    Likes Received:
    61
    Joined:
    Feb 27, 2015
    Gender:
    Male
    Rep Bank:
    $361
    Yes it is 30% down here. That is certainly an option. Not sure if where I live will be a big Air BNB place as its not very touristy but who knows; I haven't researched it so it could be a good spot.
    Thank you.
     
  16. Empire
    Offline

    Empire Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

    Messages:
    50
    Likes Received:
    61
    Joined:
    Feb 27, 2015
    Gender:
    Male
    Rep Bank:
    $361
  17. Empire
    Offline

    Empire Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

    Messages:
    50
    Likes Received:
    61
    Joined:
    Feb 27, 2015
    Gender:
    Male
    Rep Bank:
    $361
    Well, I am not at that stage yet. Maybe I have 10, 15 or maybe more years before full HD could begin kicking in. I don't think I have managed to process all this fully yet which is why I am still avoiding thinking about all that stuff.

    I know I need to focus on something NOW because my brain is, mostly, still working fine and I am physically ok. I know there will be a time when all that will slowly get worse which is why I have a fire under my a$$ now!..haha.

    Thank you.
     
  18. JordanK
    Online

    JordanK Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    207
    Likes Received:
    460
    Joined:
    Feb 17, 2014
    Gender:
    Male
    Location:
    Ireland
    Rep Bank:
    $1,955
    How about purchasing a small house or two bedroom apartment? You can then either rent the other room or use AirBnB to cover the mortgage on the property and begin paying it down. You can then also set aside $400 monthly that you used to pay in rent to go back towards your savings account on top of what you already are able to save each month.

    The most solid investments you can make in the beginning of your journey are ones that save you money.. in this case the $400 rent money each month.. as if you put the 40k into an investment fund you'll be taxed heavily on it so you should focus initially on reducing expenses as a dollar saved is typically worth more than a dollar earned.

    *You may also get tax relief on your mortgage payments and you'll be building up equity in an asset.
     
  19. business_man
    Offline

    business_man Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

    Messages:
    54
    Likes Received:
    89
    Joined:
    Nov 25, 2014
    Gender:
    Male
    Rep Bank:
    $602
    Be careful with this one. While I support investing. Sometimes I have a feeling that some people think about investing, whatever it is a real estate, stocks or anything else, that it is "meh, I am not sure where to put my money, so I'd rather invest it". It probably brakes every honest investor heart (dishonest ones use that kind of people to scale up their business, haha), because investing is a real business, like everything else and it shouldn't be taken lightly. That's why it is always easier to build on top of what you already good at, instead of jumping on "another gold rush".
     
    Empire and Jello like this.
  20. business_man
    Offline

    business_man Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

    Messages:
    54
    Likes Received:
    89
    Joined:
    Nov 25, 2014
    Gender:
    Male
    Rep Bank:
    $602
    In marketing, we call it testing. There are certain situations, niches, strategies where you don't have enough data or experience or both. You have a budget, but you start with testing first. If I invest 1k and I am not profitable, but I still got some date out of it. There are two options now, either I have another 1k or I don't. If I lost all my money, then that 1k is a loss. If I have more money than that 1k is an investment, now I know what's working and what's not and if I am good at reading the numbers I probably have some idea what could work :)
    So yeh don't throw all your savings right away, haha :D
     
    Empire and Jello like this.
  21. Kevin88660
    Offline

    Kevin88660 Bronze Contributor I've Read UNSCRIPTED

    Messages:
    118
    Likes Received:
    116
    Joined:
    Feb 8, 2019
    Gender:
    Male
    Location:
    Singapore
    Rep Bank:
    $649
    What I am talking is, when that happens do you have the income and money to take care of yourself.

    Are you trying to save as much as you can so that when something bad happens at least you have the money?

    I worked with clients who have diabetes, and people who are recovering from cancer and stroke. So I have seen much worse.

    It really depends on what your individual financial and health goal is. Not everyone is a 25 year old with perfect health trying to run a business and aim for a ferrari.
     
    Empire likes this.
  22. Zcott
    Offline

    Zcott Bronze Contributor I've Read UNSCRIPTED Speedway Pass

    Messages:
    196
    Likes Received:
    371
    Joined:
    Jul 24, 2018
    Gender:
    Male
    Rep Bank:
    $1,898
    Is it possible you can do both?

    Use some of the €40k to put a down payment on a house and then use the rest for something else, like scaling up your self published books?
     
    Empire likes this.
  23. Empire
    Offline

    Empire Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

    Messages:
    50
    Likes Received:
    61
    Joined:
    Feb 27, 2015
    Gender:
    Male
    Rep Bank:
    $361
    Solid advice....thank you.
     
  24. Empire
    Offline

    Empire Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

    Messages:
    50
    Likes Received:
    61
    Joined:
    Feb 27, 2015
    Gender:
    Male
    Rep Bank:
    $361
    Yes and no. I am still a little messed up about the whole thing. A part of me says take your savings and just go travel the world, live your life and in 15 years you can deal with the HD. Of course with that approach I would have some great memories but will most likely be left with zero in the bank.
    That would mean when the HD finally gets me....I guess I'd be in a bad spot.

    I know I probably shouldn't even be thinking about that option...I would prefer to be able to create a successful business....have enough money to do some traveling and have fun...AND have enough saved for the future for when I most likely will end up bedridden.

    That last part still scares me and I don't think I have processed it all yet. After seeing what HD is doing to my dad I am not sure I want to be around to experience the same. I am really trying to do the right thing here and push the irresponsible thoughts out of my head....but it's hard.

    Well I am 47, no kids so no major responsibilities except to look after my dad while he is still here. My older sister has HD and so her husband will take that responsibility. I have no assets like a home, no life insurance or anything like that....just my €40,000 savings.

    My financial goal is to create enough of an income where I can at least have 1 nice vacation a year, own a small house or apartment and still be able to save up for my future. If I earn enough to help out my niece and nephew for their future too then that would be a massive bonus!

    I am working towards creating semi-passive income sources...or sources of income I can earn online as that gives me freedom to be and go where I want and still earn. Also, online ventures do not seem to need a huge amount of initial capital to get started.

    I am not after the mansion or Ferrari....I am too old for that...but a regular, comfortable income where I can live a nice life, not WORRY about cash and have enough for security would be perfect for me.

    I am very good at stretching my money to the point where I can live on very little. The issue I am having is speeding up the process of MAKING that money!

    As for my health goals.....I just want to be just like everyone else for as long as I can to enjoy my efforts. I am hoping I have at least another 10 to 15 years of good health....I don't want to spend those worrying about a "not so good" future.
     
  25. Empire
    Offline

    Empire Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

    Messages:
    50
    Likes Received:
    61
    Joined:
    Feb 27, 2015
    Gender:
    Male
    Rep Bank:
    $361
    Doing both would be ideal....but I would need to put at least 30% down if I got a mortgage. Including fees and other stuff.....€40,000 may not cut it unless I buy a rundown place in the middle of no where.

    It is starting to look like I may have to get my head down and work my a$$ off for another year before I can get on the property ladder. Maybe if i find the right thing and focus enough I could hit my financial goals.
     
    Eskil likes this.

Join 1000s of entrepreneurs who are rewriting life's script and winning financial freedom.

---- ----

You must be a member to join the conversation.

Create Account

Join the community fast and easy!

REGISTER

Log In

Already have an account? Login here.

LOG IN

Share This Page