Next Exit: Wealth

[livitup]

Hello Fastlane Forum - Allow me to introduce myself.

I'm in my early thirties, and I've been living somewhere between the sidewalk and the slow lane.

It hurts to admit all this, but maybe getting it out there will really set me free of the burdens - clearing the path to success...

I'm a successful guy by all outward appearances. I have a job in IT that pays in the low 6 figures. I have a nice house with a pool in the back yard, a wife who loves me, 2 kids, and I drive a BMW.

When I got to the part in the book about being trapped by your possessions, I literally cried. We took out a second mortgage to put in the pool and finish our basement. I own the car outright, but that's about it. I've probably got 50K in credit card debt from excess spending on crap in my 20's. We are probably upside down on our house - we bought it at the peak of the real estate bubble 6 years ago with 20% down - but I'm sure it's lost more than 20% of its value since the real estate crash.

The good news is that about 3 years ago, my wife and I realized this HAD to stop. We now spend less than I earn, and we're paying off the credit cards. Probably not as quickly as we could if we really applied ourselves, but we're taking baby steps. It's hard to go from caviar straight to ramen noodles.

I have always had an entrepreneurial spirit - but I've never really taken action on any of my ideas. Though I've owned or co-owned two official, registered businesses, I don't think they even really count, because I've never been dedicated to making them work.

This changes now. My goal is 2.5 million in the bank. With that I can stop working and maintain the exact standard of living I have today by living off 5% returns. When I get to 2.5, then I will decide if the Ferrari (sorry MJ) lifestyle is worth additional work, or if I'd rather spend the time watching my kids grow up.

My only constraint is that I can't quit my current job for 1.5 years. They paid 100% of my tuition costs for me to get my Bachelor's degree, but attached to that is a condition that if I leave or are fired for cause, I have to repay them the full cost of my degree. That servitude has a little over 18 months left.

Now, FORWARD!

 

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[CEBenz]

Welcome to the forum and congrats. Hey, you may be stuck witht he job for a while, but it gives you a chance to get something to work.

As for your house, that is your dwelling first and foremost, whether you're upside down or not. People have a tendency to forget that regardless of market fluctuations, the house they're living in is their home, not typically an investment unless it was purchased as such. The tendency for many, is to bail out, rather than hold. Just like they do with stocks. As long as the mortgage isn't killing you (you have to have someplace to live), I'd say stay there as you'll probably have a hard time selling anyways.

And I'd round your 2.5million up to 4 million as I think that's a more accurate figure due to inflation.

Cheers.

 

[Sparlin]

Welcome to the forum and good luck in the Fastlane Challenge!

 

[ZCP]

Good start. Welcome. That was the easy part. Now, what are your first three steps to getting your $2.5M?

 

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[FastNAwesome]

Hi, best of luck with your goals!

Worry not about having to work at that job for a little bit more, it shall pass too. And who knows why it's good. On the bright side, whatever you're planning to do as an entrepreneur, you job may be a valuable source of contacts.

Example: while I worked as employee, my email was constantly showered with offers from various ad agencies. Now, I'd go and check out their websites - mostly very ugly and ineffective. Then I'd appoint meeting with them, and after discussing their offer, I'd put my offer on table - analysis of their website, how can I fix it up and make it look way better + earn them more money.

So - I had no leads, but was turning sales offers into actual leads. (And you'll always have sales offers). They are mostly very open for communication - hey, they contacted you first, and also when they cold-call they mostly get shut down - making them appreciate the fact you're even speaking, so try pitching sales people sometimes, it's fun

 

[MJ DeMarco]

The good news is that about 3 years ago, my wife and I realized this HAD to stop.

That is a great start.

Welcome and thanks for the awesome intro!